Religion and advertising - Look before you leap

Products needs promotions and marketing a product without promotion is like winking at a girl in darkness. Fully convinced marketers are leaving no stone unturned to garner eye balls. The case of United Colors of Benetton can be taken as example of a company that shocks for shocking sake. Their advertising campaigns are deliberately provocative and tend to generate lot of noise, furore and finally get banned. But they serve the purpose - United Colors of Benetton gets talked about and gets free publicity. 

Recently a shocking trend has been noticed. Religious symbols, religious figures and pictures of gods and goddesses have been used to promote products. Sometimes it could be a innocent mistake. One former Indian captain signed his name on the brand of shoe that he was endorsing. As the name of the captain is also the name of a holy person it created a furore and the caption had to tender a public apology. 

Similarly Shiromani Gurudwara Prabandhak Committee (SGPC) had objected to an advertisement of Cricket star Harbhajan Singh that featured him with his hair open. Sikh Religion does not permit Sikh men to open their hair even at the time of eating. Later Harbhajan Singh apologized to the SGPC.  

In a recent fashions show in Delhi the visitors were shocked to see a model wear a dress that has the image of the Prime minister of India Dr. Man Mohan Singh.

 







International designer Lisa Burke had to scrap her swimwear line for Australia Fashion Week after protests by Hindu groups at her use of images of the goddesses on bikini bottoms. She apologized and halted production of the bikini line.

A statement issued by the designer's company of Lisa Burke claimed that usage of the goddess's image was "an attempt to celebrate different cultures".

Italian designer Roberto Cavalli similarly seven years ago had to hastily withdraw his spa line after the eruption of the Hindu sentiment the world over. His usage of images of Lord Ram, Vishnu and Goddess Saraswati on intimate wear for women was the reason for the outrage.

French shoe brand Minnelli withdrew their shoes with religious images after protests. 

Heidi Klum used Kali as a Halloween outfit, and popular brand Guess sparked protests with tank tops that sported Lord Ganesha images and the words "Handsome elephant!”

Danish cartoonists who drew cartoons that made fun a major religion had to face death threats and the sale of Danish products suffered in many countries as the citizens boycotted Danish products.

Marketers have to remember that they are not operating in vacuum. They are part of the bigger scheme of things and they need to understand that religion is one thing that is very personal and tends to whip up emotions. A small spark is enough to ignite the cauldron. Indian news papers have understood this aspect and thread very cautiously when dealing with the issue of religion.

Irani cafes in Hyderabad have become very smart. One Irani café very boldly says “Do not discuss religion, politics and horse racing”. All three topics lead to time consuming discussions and to heart burn. An eatery wants his clientele to eat and exit. Customers who sit and talk for hours together are a drain on resources!

Marketing a hill station - the case of Kodaikanal

Recently I had visited Kodaikanal the queen of the hill resorts in Southern India. Kodai as it is popularly called is really a queen of the hills. It has very cool climate, great connectivity with major metros and boasts of wonderful tourist attractions. Best of all it is inhabited by very friendly people.

But like many things n India there is lot to be desired in the marketing of the hill station. There is no consortium of hotel owners and resultantly the hotels jack up their prices in the tourist or the peak season. This leads to the fleecing of the tourists in the peak season.

Kodai does not have good sign boards displaying the major tourist attractions and the distance one has to cover to reach them. Suitable signboards and directions are very much needed for trekkers and tourist who want to reach the  tourist spots on their own.

For a hill station with international repute the facilities are abysmally dismal. The author and his family wanted to trek to Fairy falls. We went to the Tamil Nadu tourism department’s office. We were given a map which said that the fairy fall was only 2 kilometers away. The officer said that tourists should not trek by themselves and that a guide is needed as we would be passing through FOREST Area. 

Suitably impressed we asked for the guide fee. WE were told that the guide would charge us 600 rupees (12 Dollars). A jaw dropping price as the distance was hardly 4 kilometers. Finally we did the trek by ourselves. Yes it was easily done and the locals helped us find the directions. Fairy falls is quite safe and there was no thick jungle around the falls.

The next day we wanted to go to the Silver Cascade. Silver cascade is a waterfall that is very famous. The cab drivers quoted a price of 600 rupees (12 dollars – oops is 12 dollars the standard price in Kodai?). We refused and took the bus. The bus charged us 20 rupees one way for four people (40 US cents). Shocking example of not providing even the most basic amenities.

Kodai has beautiful locales but is marred by the noisy and intrusive vendors. They crowd the tourist attractions and in many cases the attraction is hardly visible due to the number of vendors surrounding the tourist attraction. There is lot of noise and tourists are pestered by demanding photographers wanting to take a snap that will freeze the moment for posterity. 

A tourist attraction called Guna caves is totally covered by iron grills. The tour operator proudly proclaimed that he would be taking us to the famous Guna caves (made famous by a south Indian movie which was filmed in the caves). It was a big disappointment to see the caves covered with a grill.

Kodai has not marketed itself well. There are no Kodai Tee shirts, no Kodai souvenirs, no Kodai tea cups, no Kodai magnets nothing. The tourists have to buy Nilgiri tea and coffee or forest produce. Nothing of value that can be displayed in the showcase. Kodai has missed a trick.

Yes Kodai chocolate is available and is tasty. But the display is shocking. Chocolate is piled as slabs and sold like vegetables. The visitors who buy in bulk are bemused to see that the chocolate is packed in disposable containers that in India are used to pack curry.

Just imagine gifting a box of Kodai chocolates to a friend. He would think that you have mistakenly brought him your afternoon lunch!

The only saving grace are the bicycle lenders around the Kodai Lake. They offer the visitors bicycles for an hourly rent of only 20 rupees (forty cents). They ask for no identity proof or do they take any advance. It is a great pleasure to take the bicycles for rent and peddle around the glorious Kodai Lake. It was a very nice sight to see many visitors riding the bicycles and enjoying the ride. Kudos to the bicycle lenders of Kodai.

I think that the management of Kodaikanal needs to brush up its functioning and learn the tricks of the trade of how to market a hill station. That way they would ensure more pleasant memories to their visitors and also enrich their coffers. 

ARTOS slugs it out with the cola giants Coke and Pepsi

A small cola maker from Ramachandrapuram, in East Godavari, Andhra Pradesh, India is showing a way to battle the cola giants. The bottle is not yet won but many initial  skirmishes  have  been  won  by  the  David (ARTOS). ARTOS (Adduri Ramachandra Raju Tonics) is a 91  year  old brand dating back to the British raj in India.

At a time when Coke and Pepsi retail their 300 ml bottle at 12 rupees, ARTOS sells at Rs 6, exactly half the price.

Adduri Ramachandra Raju the founder of ARTOS began his entrepreneurial journey with a small step in 1912 by filling soda water in soda bottles, and selling them in the local market.

No one was willing to consume the soda as they thought that there was a ghost hidden in the bottle. Raju through perseverance and an uncompromising will power traveled miles requesting people to taste the soda. The First World War came as a boon to Raju. In 1914, a group of British soldiers camped at Ramachandrapuram tasted the soda and became its ardent fans.

The locals observed the soldiers consuming soda and followed suit. In 1919, Raju's younger brother, Jagannatha Raju, started assisting his brother. Jagannatha Raju started marketing the sodas with a dash of sugar, colour and flavour.

Later they established contacts with soda makers in London and imported glass bottles, sugar, CO2 gas and flavours for making aerated drinks. Thus was born AP's first soft drink in 1920 - Artos - with the tag line of ”exhilarating, invigorating, aids digestion”.

The industry started flourishing and sales picked up gradually. The Second World War came as a severe jolt with imports coming to a virtual halt. All the soft drink industries (Duke's from Bombay, Spencer's from Madras, Roger's from Delhi and Vincent from Madurai) had to shut down due to non-availability of raw material. But the Raju brothers did not lose confidence. They brought oranges growing in the forests, peeled them off and extracted fruit juice concentrate.

They purchased lemons from the market and made acids; jaggery was refined and liquid sugar was made. Though the whole process was costly and tedious, the indefatigable brothers went on making soft drinks until after the war. Their sheer hard work paid dividends.

In the late 50’s, many new soft drink companies came up all over the country. Coca Cola entered the Indian market in the sixties. Among the Indian brands, Parle from Bombay started putting up franchisees in Andhra Pradesh from 1968. With the onslaught of multinationals, almost all the Indian soft drink manufacturers suffered and ARTOS was no different. Despite losing tax reliefs and other related benefits from the state government and having to pay taxes on par with MNCs the company according to Raju has not compromised on quality. The company was forced to hike its MRP from Rs 5 to 5.50 in 1 April 2001. Presently selling at a rate of 6 rupees ARTOS is still doing well in the Godavari district but only time will tell whether it would be another Thums up an Indian soft drink brand  that is doing well Inspite of the presence of Coca-Cola and Pepsi or will end up as victim of the relentless charge of the multinationals.

Make Your day - send a greeting card!

A greeting card is an illustrated, folded card featuring an expression of friendship or other sentiment. Although greeting cards are usually given on special occasions such as birthdays, Christmas, Diwali, Ramadan, New Year day or other holidays, they are also sent to convey thanks or express other feeling.

The sending of greeting cards had reached a stage where there are occasions for father’s day, mother’s day, Grandparents day, Pet’s day, get well cards,  and what is touted as the ultimate marketing gimmick no occasion day. That is a card is sent Chumma (Simply like that) – without any occasion.

Some occasions have become popular mostly due to the greeting card companies. For example Valentines day was a celebration of love before it was turned into a mega celebration and a spree of card and gift giving, all courtesy - greeting card companies like the Hallmark. 

Greeting cards, usually packaged with an envelope, come in a variety of styles. There are both mass-produced as well as handmade versions that are distributed by hundreds of companies large and small.

Hallmark Cards and American Greetings are the largest producers of greeting cards in the world. An Indian company called Archies does excellent Work in India and is highly profitable.

Many people traditionally mail or post seasonally themed cards to their friends and relatives in December. Many businesses also send cards to their customers in this season, usually with a universally acceptable message such as "happy holidays" or "seasons’ greetings".

Types of greeting cards

Standard Greeting Cards: A standard greeting card is printed on high-quality paper and is rectangular and folded, with a picture on the front. Inside is a preprinted message appropriate for the occasion, along with a blank space for the sender to add a signature or handwritten message. A matching envelope is sold with the card.

Photo Greeting Cards: In recent years, photo greeting cards have gained widespread popularity and come in two main types. The first type is a photo insert card in which a hole has been cut in the center. The sender’s photo slides in just like a frame. The second type is a printed photo card in which the photo is combined with artwork and printed, usually on a high-end digital press, directly onto the face of the card.

Personalized Greeting Cards: Websites using special personalization technology, such as Moonpig, allow consumers to personalize a card which is then printed and sent directly to the recipient.

Musical Greeting Cards: Musical greeting cards have been conceived which play music or sound when they are opened. They commonly have 3D handmade birthday cards which play traditional celebration songs such as Happy Birthday to You.

Electronic Greeting Cards: (also called E-cards) Greeting cards can also be sent electronically. Flash-based cards can be sent by email, and many sites such as Facebook enable one to send greetings. More recently, services have launched which enable the sender to send greetings to a mobile phone by text message.

Two Greeting cards that I remember:(Both were pranks that were played out by my classmates on other classmates) 

The greeting card says “You are a legend”. The recipient excitedly opens the card. Inside it is written “In your own eyes”

The second card says “Eat shit” Shocked by the profanity the recipient opens the card to find a message that says “25 trillion insects eat shit, why don’t you?”

Any which way a greeting card is a very personalized way of greeting someone. So greet some one with a card and make her day and make your own day better!

Costco - The Low cost Champion

Costco the retailing warehouse was founded in 1983 at Kirkland, Washington. Costco has stores in 563 locations spread across USA and many other countries (2009). It has revenues of US $ 71.442 billion and employs 147,000 people (2009).

Costco is the largest membership warehouse club chain in the United States. As of July 2009^[update] it is the third largest retailer in the United States, where it originated, and the ninth largest in the world. Costco has locations in the United Kingdom, Canada, Australia, Mexico, Taiwan, South Korea, Japan, and the United States.

In the United States where the concept of warehousing clubs is very popular the competitors of Costco include Sam's Club and BJ's Wholesale Club. As of September 2009^[update] Costco had 55 million members.

Costco focuses on selling products at low prices, often at very high volume. These goods are usually bulk-packaged and marketed primarily to large families and businesses. Costco does not carry multiple brands or varieties where the item is essentially the same except when it has a house brand to sell, typically under the Kirkland Signature label.

This results in a high volume of sales from a single vendor, allowing further reductions in price, and reducing marketing costs. If Costco management feels the wholesale price of a product is too high, they will refuse to stock the product.

Costco also saves money by not stocking extra bags or packing materials. To carry out their goods, customers must bring their own bags or use the merchandise shipping boxes from the company's outside vendors.

Lighting costs are reduced on sunny days, as most Costco locations have several skylights. During the day, electronic light meters measure how much light is coming in the skylights and turn off an appropriate percentage of the interior lights. During a typical sunny day, it is very common for the center section of the warehouse to have no interior lights powered on.

Most products are delivered to the warehouse on shipping pallets and these pallets are used to display products for sale on the warehouse floor. This contrasts with retail stores that break down pallets and stock individual products on shelves. Costco limits its price markup on items to 15%.

Typically the decor and the fittings are utilitarian and the stores are located in places where the real estate prices are low.

Costco is only open to members and their guests. Memberships must be purchased in advance for one year. Purchases made at Costco's website do not require a membership; however, a 5% surcharge is added to purchases made by non-members. Purchases made with Costco Cash Cards also do not require a membership, and there is no surcharge.

As of November 2009^[update] membership fees at Costco are $50 per year for a Gold Star (individual) or Business membership, which can be upgraded to Executive membership for an additional $50 per year in the USA.

Costco memberships can be refunded in full at any time before they expire. Costco guarantees almost all of their products with a full refund within a reasonable amount of time. Exceptions include televisions, projectors, computers, cameras, camcorders, digital audio players, and cellular phones. These may be returned within 90 days of purchase for any reason for a refund.

After 90 days those returns must be done through the manufacturer according to the terms of the warranty. Costco has negotiated with manufacturers to extend the manufacturer’s warranty to two years for new TVs and computer

Over the years Costco has gradually expanded its range of  products and services. Initially it preferred to sell only boxed products that could be dispensed by simply tearing off the shrink wrap off a pallet. It now sells  many other products that are more difficult to handle such as fresh produce, meat, dairy, seafood, fresh baked goods, flowers, clothing, books, computer software, vacuums, home appliances home electronics, solar panels, jewelry, tyres, art, wine, furniture and caskets. 

Kirkland Signature is Costco's store brand, otherwise known in the retail industry as an "own-brand," "house brand" or "private label" It is found exclusively at Costco's website and Costco warehouses and is trademarked by the company.

Mosquito repellent market – Marketing innovations

So lets us see some innovation in the mosquito repellent products

Liquidator with a control: This is a new innovation. There is knob on the liquidator. The knob can be adjusted to be at a minimal level for fewer mosquitoes and at a maximum level for more mosquitoes.

Liquidator with a push button control: Some liquidators come with a push button control. When the push button is not activated it is for less density of mosquitoes and if the push button is pushed it is for more density of mosquitoes.  

Odomos without the stickiness: Odomos the cream ran into problems with its stickiness, the smell and the irritation that it causes to sensitive skins and to children. Odomos worked on its formula and came out with a new cream that is less smelly, lees sticky and causeS less irritation.  

Coils without vapor: Tortoise the brand that wake up the repellent market too had its share of problems with the smoke that it emits and the resultant pollution. Now a day’s coils emit less smoke and cause less environmental pollution. But coils are cleanly out of favor and they now being shifted to more off house platforms. That is coils are being used mostly for outside the home usage.

Tennis bat terminator: A new invention. This is a electrical item shaped like a tennis bat. During my evening walk I frequently hear the snapping sound of a mosquitoes perishing and find a  face of grinning man who has just eradicated one  of the many mosquito that have been irritating his for quite some time.

DDT and defogging: These are used by the government. DDT was supposed to be a wonder and it was said that it would wipe out the mosquitoes menace. But what is wiped out was natural fauna like the sparrows! The mosquitoes have proved to be resilient and have genetically modified themselves and have proved immune to DDT. Same with the defogger. It created lots of noise and smoke but no real reduction of mosquitoes have been observed in areas where defogging operation has been conducted.

Two-in-one (mosquitoes and cockroaches): A new innovation, some companies have come out with two in one eradicator. One spay will kill both mosquitoes and cockroach. Does it really work? It is anybody’s guess but it is a very clever marketing innovation.

Mosquito repellents sprays that can be used as room freshener too: I have not seen this innovation but is worth a try. Now a day’s most people are conscious about their surrounding and they spend lavishly on room fresheners. So why not have a room freshener that can eradicate the mosquitoes. but  the marketers have to mull over the positioning the product.

Would the marketers position the product as a room freshener that can kill the mosquitoes or as a mosquito repellent that smells nice and can be used as a room freshener? My bet is – go for the room freshener which can be a mosquito repellent. That would be a nice positioning!

Mosquito repellent market

It is said that only two things that will survive the third world war. Rats and cockroaches (popularly called roaches in USA). I can very confidently add one more species. The not so humble mosquito. Mosquitoes inflict horrendous damage and kill millions of people every year. They cause infectious diseases like yellow fever, dengue, hemorrhagic fever, many forms of encephalitis and the deadly malaria. As people become more aware of the diseases caused by mosquitoes, the demand for mosquito repellents will keep on increasing, which is a positive sign for the manufacturers, new entrants as well as the existing players.

The Mosquito Repellents market is very huge and valued at more than Rs 1600 crores in India and is growing at a healthy clip. This segment is characterized by low competition and high consumption. Mosquito Repellents segment is estimated to have more than 54 manufacturers with 72 brands in India alone.

The products covered in this category include

Coils: The early method of commercial mosquito repellents. Of course the earliest method has been to apply ash or some herbal creams. People have also used mosquito nets. But these have proved to be cumbersome and the mosquito nets restrict movement and many feel claustrophobic in mosquito nets.  Mosquito coils have to be lit up and emit smoke that will make the mosquitoes to go away. But inevitably most coils cause air pollution and cause irritation to the throat and the eyes. There is a danger of fire and all the windows and doors have to be closed when the coil is lit. But there is an advantage as there is no need for electricity for coils. Coils are mobile.

Mats: Need electricity. Some mats give off a slight smell but most don’t. They are convenient to use, small and very compact but they need electricity to use and are not mobile.  

Liquidator: Moving from the mat to the liquid has been a recent phenomenon. Here the repellent is in the form of a liquid which when switched on drives the mosquitoes away. Once the liquid is exhausted it can be replaced with another refill. The machine that operates the liquidator is reusable.   

Candle: A novelty. The specially made candle that repels mosquitoes is made of natural elements and is supposed to be environmentally friendly. A niche product it might do well in homes that have environment friendly citizens.

Creams: One of the early methods of mosquito repellents, a cream like Odomos (Odor that can stop the mosquitoes?) has been quite effective. Portable and convenient to use they are a superb method of mosquito repulsion when people are on the move and when one is camping. But the put-off has been the smell and the allergies that these creams can cause to sensitive skins and to children.

Spray:  in the form of aerosol cans. The repellent is in the form of a spray and these sprays are now available that can be used just like room fresheners. This product again does not need electricity to operate it.

IPL going the EPL way?

The way IPL is going things are getting very worrisome. The crassness of the entire thing is now frightening. More of that later. The thing that I am interested in whether commercialization helps the development of the sport in the country. Does hosting EPL and IPL and getting famous players to play in the country help the game of Football in England and Cricket in India. EPL is played in England and IPL is played in India. IPL is very new for any type of research.

So I took the case of the English Premier League. The league is so popular that In African Countries people wait for an entire week to see the clash between Manchester United and Arsenal and pay an astronomical amount to watch a live telecast. The league has billions of followers and is very lucrative. But has it benefitted the country that is England where the league is played? The League was started in the year 1992 and check out for yourself the English national team’s performance in all the FIFA football world cups from 1990.

FIFA worlds Cup               England Team performance

1990                                                       4th

1994                                                       DNQ (Did not qualify)

1998                                                       9th

2002                                                       6th

2006                                                       7th

2010                                                       13th

2014                                                       26th

2018                                                       4^th

England’s best performance came in the year 1990. That was in the year when there was no Premiership league. England did not even qualify for the 1994 world cup, Finished 9^th, 6^th, 7^th, and 13^{th in} the later world cups. They made it to the pre-quarter-finals on two occasions and quarterfinals in two other. Not very flattering for a country that boasts of the richest football league. In contrast, Brazil does not have a great football league but continues to produce the greatest footballers in the world.

So what did EPL achieve? Lots of money for the clubs, TV channels, and the players. The players have benefited so much all the footballers are any how famous, even their WAGS (wives and girl friends) too are featured in page 3 of major newspapers. But apart from this nothing else has been achieved. The footballers have become more loyal to their clubs than the country that they represent. There are occasions when the players have not been relieved from national duty by the club or have feigned injuries so that they don’t have to attend coaching camps for major national events. 

New Products that did not do well in India Part II

Times of India is a news paper that is a television channel in print, Deccan Chronicle is the king of local flavor and the Hindu stands for the traditional old style. In this very clearly segmented and positioned south Indian english news paper market a newspaper that promoted all things for all  people stood no chance. Eventually Ramoji Rao pulled the plug and gave Newstime a decent burial that its deserved.

Soma: a soft drink venture from Ramoji Rao the media baron. This was a foray that was doomed from the start. Soft drinks need focused distribution strategy and a marketing plan. Even though Soma had a great taste but it was not marketed well and finally it was withdrawn from the market.

Sunfill: A product from the Coca-Cola Company. Coca-Cola is the market leader in the soft drink market. It very proudly says that there are places in the world where water is not available but there is no place in the world where coke is not available. Sunfill was a very unique product from Coca-Cola Company.

Sunfill was a powder that was marketed at Rs 2/- per packet in India. The consumer simply has to empty the powder into a bowl, add sugar and water, mix and presto a soft drink was ready for consumption. Sunfill, Coca-Cola thought would be a right competitor for Rasna the market leader in the soft drink concentrate market.

The reality bites were very different. Rasna was very aggressive as it was only in the concentrate business. But Cola-cola was caught between two worlds. On one side if it would concentrate on the soft drink market it could not focus on the Sunfill or the powder business. Second the margins on Sunfill were very limited and the salesmen did not give it a correct push as sales people for soft drinks and sunfill were the same. And the sales people pushed the sale of bottled soft drinks as it gave then more incentives.

The sale of Sunfill also meant that the sale of RBC (returnable bottled cola) went down. All the sales people of Coca-Cola were born and brought up on glass bottled cola business and they resented the concept of powdered soft drink. They were not given proper training on product differentiation and selling a bouquet of products.

Subsequently Sunfill was withdrawn from the market. But interestingly powdered soft drink is available in Ethiopia and Coca-Cola also market Tropicana in the powder form. But Sunfill is a prime example of a good product that was not marketed well internally in the company. It also needed a separate distribution network and a different marketing strategy. As it was not given a separate treatment it died a premature death in India.

What can be the take ways from the above examples? Companies should not enter into a business because they promise good market share and profits. They would have to think as how the new products would affect their existing businesses. Would the new products offer any synergies or would it affect their core businesses? Also it is worth to spend time on training and orienting the employees about the new products. The companies should always remember its core competencies and try to maximize the same.

New Products that did not do well in India Part I

Kingston Filter Kings: was introduced by VST (Vazir Sultan Tobacco). VST had earlier introduced a highly successful cigarette named Charms. Charms was a huge hit as it had a denim pack and it was the cigarette of the rebel. In the eighties it was considered very stylish to tap the charms pack and see a cigarette jump out. Riding on the Charms success Kingston was introduced.

Kingston was projected as the premier filter kings and it was positioned as the cigarette for the upwardly mobile. The promotion had Jamaican beaches, sun, sand and beautiful girls. All this made no sense to the Indians. Sun is available plentifully in India and getting tanned is never an Indian priority. Indians are naturally tanned. The beaches of Kingston and Jamaica meant nothing to the Indian whose ideas of the beaches were limited to Goa and Kovalam. As such there was nothing inspirational about Kingston and the brand died a natural death.

Vacuumizer: was one of the products that was marketed by ABC (Amitabh Bachaan Corporation) limited. Vacuumizer has a very unique promotional campaign. It did carpet bombing. In other words the entire commercials for the Sunday night movie on Doordharshan which that time had the monopoly of television viewers were booked by Vacuumizer. All the advertisements that were featured on that Sunday night were of Vacuumizer.

Inspite of the innovative promotion Vacuumizer failed. Vacuumizer was a product which could keep a product fresh for more than a month. The product can be kept in the Vacuumizer and the box can be sealed. The food will be fresh for a long period of time. For a country that is keen on fresh foods for obvious reason the idea appeared to be very alien. Vacuumizer was a product that came to India too early. If it were to be introduced now it would be a success.

Soy milk: This was a product that was introduced by Godrej. Again a product that came before its time. At the time of its introduction India still had not embarked on the mission of eating healthy food. Eating ghee laden food was the in thing (it still is!). So a product that promised a drink that is nutritious made no sense. And the taste too was alien and the product died a natural death.

Jelly drink: Product of Godrej again. Jelly-O met with cultural resistance. Indians are used to smooth soft drinks and a drink that had granules in it was not liked. And jelly-O had smooth and rubbery granules and the consumers gave it the kiss of death.

Newstime: was the English news paper introduced by the Telugu media baron Ramoji Rao. Ramoji Rao is the owner of the 4th most read Indian news papers and the most read Telugu newspaper Eenadu. Readers expected that Newstime would be successful too. The tagline of Newstime was “all things for all people”. Readers did not understand what Newstime stood for. In the modern world you can’t be all things for all people.

Coin in the paint –Out of the box thinking

Coin in the paint: This article shows the power of innovative thinking. This piece of action has taken place in Hyderabad, India. It is about a small paint manufacturer from Hyderabad. This was a small company that had excellent range of paints but had very limited liquidity. They were being squeezed out of the market by aggressive national paint companies. The company had a limited advertising budget.  And it could not spent money on promotion like the big companies. The company if it were to spend even 10 crores rupees (which was 50% of its turnover) it would not be enough as 10 crores is small change for the big paints companies.

The company needed to think out of the box. It approached a marketing research company and asked it to suggest a way to get a decent market share. The marketing research organization did not give any immediate solution. It studied the market.

It found out that paints marketing is quite different from the others products that are marketed. In most product categories it is the husband, wife, the children or the family together who take a purchase decision. But paint is not a glamorous product. The family does not play any role in the purchase decision. Then who takes the decision?

Study proved that the architect or the painter who make paint related purchase decision in the primary market (house being painted for the first time) in the secondary market (re painting) it is the painter.

So what motivates the painter? Of course quality matters but the painter is more bothered about the margin that is given to him by the distributor that is the most appealing aspect in the paint purchase decision. In other words the commission given by the distributor is pocketed by the painter and the MRP (Maximum Retail Price) is shown to the house owners. The motive of the buying decision is the margin of discount given by the distributor.

The market research organization came out with a brilliant campaign. It told the company to place 1 (one) gram gold coins in selective paint boxes. As expected this ploy proved to be a big hit. As it was not promoted publicly the paint majors were not aware what was happening. The news of the gold coins found is paint boxes spread like wild fire and all painters were buying the paints in huge numbers.

Next the marketing research organization suggested that the company should concentrates on the painter and his family. The painter ability to earn depends on the ability to paint as fast as possible. The company trained the painters in fast painting. They were given the latest tools and brushes. Once the painter was able to paint faster his earnings increased and he became loyal to the small company. Thus the company by its very unique customer relationship Management practices enhanced its brand image and ensured continual patronage from its target customers that is the painters.

Products that did not do well, New Coke and Pepsi AM

The market place is a great leveler. It brings down the giants quickly and mercilessly. The bigger the company the faster they are brought back to realities of the market place.

The most cited example is that of the new Coke that was introduced by Coca-Cola. Market research clearly showed that the young generation liked the taste of Pepsi. This was started by Pepsi who used the concept of a blind trail. Blind trail is a form of product testing where the consumers sample the product blindfolded and then choose the better tasting products. The blind test by Pepsi showed that the consumers overwhelmingly chose Pepsi over coke. It looked as if Pepsi was a product for the young and the hep generation and Coke was the product for the old and stodgy. The media campaign by Pepsi touting the results of the blind trail were so effective that even Coca-Cola bought the idea. 

Coke went through extensive market research and product development and launched the New Coke and expected to rake in the moolah. Simultaneously it withdrew the old Coke. To its surprise consumers rejected the new coke and there were protests all around. Consumers rallied around and there was a hue and cry. Coke in its old form was seen as an iconic American brand and the Americans did not want Coca-cola to tamper with their favorite product. Later Coca-cola introduced the old coke and called it Coke Classic.

Pepsi fared no better. The biggest competitor for Pepsi of course is Coca-Cola. But their bête noire is not each other but the coffee and tea that people drink early in the morning. Most people would like to have their shot of caffeine or thiamine (the stimulants present in Coffee and tea) and they get that shot from their favorite cuppa. Pepsi came out with a grand idea. It developed a product that is high in caffeine and introduced a product Pepsi AM. Pepsi was gung-ho about its product. It was a beautiful combination of a soft drink and caffeine.  

Consumers rejected the product outright. They wanted a shot of caffeine but they wanted it with their coffee. In short people were used to having something hot in the morning and a substitute product when it offers the same stimulant would not be accepted as the substitute was cold. Most of us are not used to having something very cold early in the morning. This effectively rang the death knell for Pepsi AM.

Pepsi introduced a product called Pepsi Maxx in India. It is a 250 ml soft drink that comes in a can. The product claims to have no sugar at all. Pepsi extols the virtues of the concept of "maximum" over that of "zero." It is a counter to the Coke’s diet coke campaign of Zero calories. In India Pepsi is promoting Pepsi Maxx as a energy maximizer as it has caffeine. The product also claims that is not suitable for children.

For a product category that hinges so much on patronage from the children it would be interesting to see how Pepsi Maxx would fare in the Indian market if it is denied to the children. One should not forget that India has very young population. Pepsi need not worry. Enforcement of the rules is quite lenient in India and I am sure that any child who asks for Pepsi Maxx would get it. I am also sure that the restriction of Pepsi Maxx is a statutory obligation because of the caffeine content and not a voluntary restraint from Pepsi Co.

Marketing lessons from Kellogg Positioning strategy correction

Kellogg strategy correction: Kellogg very quickly realized that it made a mistake by taking the traditional Indian breakfast head on. It was too much of a risk and a Himalayan task of overcoming eating habits inculcated over the centuries. Kellogg took a leaf from the marketing strategy of Nestlé’s Maggi two minute noodles.

The USP of the Maggi noodles is that it is fast, convenient and a fun product. It is convenient for the mother to prepare and it is very attractive to the child to consume. At the same time the mother is very careful about what her child eats. Maggi noodle is positioned as the ideal snack between the time the child comes home and dinner. It is given to the child as a hunger quencher when the child comes home. The child’s hunger is satiated but only till the dinner time. Maggie’s strategy was brilliant and it paid off.

Kellogg did a quick re think. It latched onto the supplement positioning. It came out with a campaign which stated that Kellogg corn flakes come in where the Indian breakfast stops. In other words if the Indian breakfast gives the child 85% nutrients the rest of the nutrients can come from Kellogg. The positioning of the food supplement was taken by Kellogg. It was saying to the Indian consumers “eat whatever breakfast you want to eat but to get that extra nutrition have Kellogg”. 

Definitely a climb down for Kellogg. Its advertisement says that it. The advertisement shows a small child eating the traditional Indian breakfast and the ticker quickly adds and shows 85%. That is the amount of nutrients that the child had received. The next shot show the child on his tricycle going to a mock petrol station and he gets a fill of the rest of the 15% nutrients from his smiling mother, courtesy Kellogg. 85% of nutrients from Indian breakfast and the rest 15% of the nutrients come from Kellogg.

Over the next few years Indian cereal buyers were introduced to Kellogg’s Wheat Flakes, Frosties, Rice Flakes, Honey Crunch, All Bran, Special K and Chocos Chocolate Puffs – none of which have proved to be very popular.

Kellogg India also attempted to indianize its range. Its Mazza branded series of fusion cereals, with flavors such as mango, coconut and rose, met with lukewarm response. It also introduced less priced packs priced at Rs10/-. This strategy might work in a price conscious market place like India.

Recently Kellogg has decided that it would take the route of repositioning. It has now come out with a campaign that says that its corn flakes are very good for people who want to lose weight. Its has  repositioned its corn flakes as diet food and according to Kellogg consuming its cornflakes for two weeks could lead to a weight loss of 2.5 kgs! (watch the advertisement).