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. 

A sweet Lesson in Positioning – How Cadbury became India’s new “Meetha”

A Lesson in Brand Positioning. Why did Cadbury try to replace India’s traditional sweets and actually succeed?

For decades, chocolate in India was seen as a product meant for children. Yet today, Cadbury Dairy Milk is not just a chocolate — it is “meetha”, part of celebrations, rituals, and even new beginnings. How did a foreign chocolate brand enter a deeply rooted cultural space dominated by traditional sweets? The answer lies in one of the most remarkable brand positioning journeys in Indian marketing.

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 its key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang, and Oreo.

In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years of existence, it now has six company-owned manufacturing facilities at Thane, Induri (Pune), Malanpur (Gwalior), Bengaluru, Baddi (Himachal Pradesh), and Hyderabad, along with four sales offices in New Delhi, Mumbai, Kolkata, and Chennai. The corporate office is in Mumbai.

In the milk food drinks segment, its main product is Bournvita — the leading malted food drink (MFD) in the country. Similarly, in the medicated candy category, Halls is the leader. Cadbury also entered the biscuits category with the launch of the world’s No. 1 biscuit brand, Oreo.

Cadbury chocolates — the ultimate seductress in the form of chocolate — have been a favorite among Indians. The brand repositioning strategies that Cadbury has adopted over the years have been very interesting and are worth a detailed study.

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

CDM is for all occasions: With the launch of the ₹5 pack in 1998, CDM became more affordable and accessible to the masses. The subsequent positioning — ‘Khaane waalon ko khaane ka bahana chahiye’ — transformed consumption into a joyful and social occasion.

CDM as a substitute for Indian sweets: In 2004, the ‘Kuch Meetha Ho Jaaye’ campaign was launched, with the objective of increasing CDM consumption by making it synonymous with traditional Indian sweets (mithai).

CDM as a dessert: With the campaign ‘Khaane ke baad meethe mein kuch meetha ho jaaye’, Cadbury aimed to introduce the idea of having a Cadbury Dairy Milk as a post-dinner dessert.

CDM and cultural integration: In 2010, the ‘Shubh Aarambh’ campaign was launched, drawing from the traditional Indian custom of having something sweet before beginning something new. With this, Cadbury took the Dairy Milk journey a step further into the hearts of millions of consumers.

Cadbury Gems — the kid in you: The 2011 campaign ‘Raho Umarless’ celebrates the child within all of us. The advertisement depicts two friends unabashedly exchanging gifts that they receive when they buy a Cadbury Gems pack.

Cadbury Éclairs: Cadbury Éclairs has been present in India since 1971. The credit for creating éclairs goes to an English confectionery firm that devised this delicious formula in the 1960s. This indulgent combination of chocolate wrapped in soft, chewy caramel came to Cadbury when it acquired the firm. In 1994, the brand adopted the purple and gold packaging that has since become its trademark.

A New Repositioning Move — Choclairs: Cadbury has also introduced a new repositioning strategy by changing the name from Cadbury Éclairs to Cadbury Choclairs. The think tank at Cadbury seems to believe that its strongest associations lie with the words Cadbury and chocolate, and it wants to avoid any dilution of this identity. Hence, the reinforcement of the word Choclairs alongside Cadbury.

However, one small doubt arises. The category itself is known as an éclair. By moving away from the category name, is Cadbury opening a small window for competitors to step in and claim ownership of the “éclair” space?

Final Thought: Cadbury’s journey clearly shows that positioning is not static. It evolves with time, culture, and consumer behavior. From being a children’s chocolate to becoming India’s preferred “meetha,” Cadbury has successfully embedded itself into the cultural fabric of the country.

The question, however, remains, Is the move to Choclairs a reinforcement of strength, or the beginning of a subtle shift in category ownership?

Keywords: Cadbury positioning strategy, Cadbury Dairy Milk marketing strategy, brand repositioning examples India, Cadbury case study marketing, how Cadbury became meetha, chocolate marketing India, FMCG branding strategies, cultural branding examples,  marketing lessons from Cadbury, brand positioning case study India, Cadbury advertising campaigns India, consumer behaviour chocolate India

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Brand equity and Brand loyalty - Examples of Marlboro and Harley Davidson

This blog entry is about a brand  that transformed the idea of smoking and of Machismo. Yes I am talking about Marlboro the ultimate advertising dream created by Leo Burnett. The image of the ruggedly handsome cowboy with chiseled features and the rough and ready looks went a long way in creating the ultimate male icon. The image of the cowboy lighting the cigarette with a big block of wood I am sure would have launched many a youngster into the habit of lifetime smoking.

Readers would be astonished to know that Marlboro was originally a cigarette that was created for the women. The dead give away - the red tip filter. The red tip filter was to protect the women smokers who otherwise would have lost the redness of the lipstick had the filter been white. That is what the advertisers can conjure. They can create dreams and built their castles on the sale of dreams. 

One brash American had gone to the headquarters of Philip Morris, the makers of Marlboro and demanded that he be allowed to see the Chairman of the company. To his enormous surprise he was allowed to meet the chairman. 

The brash American says with out battling an eye lid  “I want to buy Philip Morris, what is the cost?"

The Chairman of Philip Morris was in his elements. He wanted to humor this brash American (so what if he is a upstart and acting silly) . He smiled and said "Well we could strike a deal at 5 Billion US dollars"

The brash American was taken back by the figure. He said demurely "That a bit steep, what if I only want the brand name of Marlboro?"

"oh only the brand name, Marlboro! Well sir you can have it for 10 billion US dollars",  

Needless to say this answer bowled the brash American and he was speechless.

The lesson from the anecdote – brand equity. A company is not the buildings, the infra structure, the people and the products. It is about the image the company occupies in the mind of the customers and what is its perceived value. The higher the perceived value the higher the brand equity. Indians have understood this concept very well. The shopkeeper selling his shop to the new owner demands "Goodwill” Goodwill being the brand equity of the shop. 

Similarly the customers of Harley Davidson are legendary for their fierce loyalty to the brand Harley. We all have heard of many examples of their fierce loyalty transcending into their daily life. Harley users dress differently and are a law to themselves. They have their own communities, clubs, rules, regulations and rituals. They wear leather clothes and are heavily muscled and sport tattoos. 

A shop floor in charge admonished his subordinate (incidentally a Harley user)

“Look at you, your dress is awful. If you don’t dress properly I am afraid I will have to fire you”

The response from the Harley user? Instead of changing himself he changed the job. This is the ultimate customer loyalty. Where the person and the brand have merged. They have become one. An ultimate dream for any marketer! 

Dreamers Media Will Pay the customer’s Car EMI

Dreamers Media and Advertising has launched an interesting scheme for Out Of Home (OOH) advertising. The company will pay the EMI of the car which the customer buys through them, in return the customer will have to allow Dreamers to run advertisements.

All of us have seen radio taxis with advertisements  on them, which helps the taxi companies in boosting profits. Dreamers is trying to do is quite a similar thing and this can benefit those who don’t care much about what the exteriors of their cars says or has on it.

So how does it work? The customer decides a car he wants to buy (up to a maximum of Rs. 6 lakhs) and pay 25% as down payment on the 5 year loan. The car will be brought through Dreamers who will then pay the first three years EMI on the vehicle. The remaining 2 years EMI will have to be paid by the customer. Any one who travels a minimum of 1500 kms a month is eligible. The company will cover 40 to 60% of your car’s exterior with advertisements and the customer has to keep your car clean and not tamper with the stickers or VTS (a device which tracks how many kmshave been driven by the customer)

Dreamers Media and Advertising is targeting customers from middle income group who have an annual income of less than Rs. 10 lakhs. The stickers used on the vehicle will be Vinyl printed using eco solvent inks. Clarity about other terms like in cases of dents and accidents as to who will bear the cost of replacing the stickers is still not clear .

The scheme is open all India. A 24×7 call center has been put in place to ensure smooth functioning of the system. The company is betting big on higher budgets from advertisers, increasing commuting distance and decreasing penetration of newspapers and television. A turnover of Rs. 150 crores is being targeted in the first fiscal.

So what is the benefit? Let’s take the  Honda Brios MT for example. The vehicle costs Rs. 5.55 lakhs (on-road, Mumbai). The ex-showroom price is Rs. 4,89,425/-. Thus 25% down payment will be 1,22,356/-. The pending amount which will be the loan which is Rs. 3,67,069/-. Thus the EMI will be Rs. 8064/- at an interest rate of 12% (Dreamers might get lower interest rate as they will be having higher volumes). Thus Dreams will end up paying Rs. 2,90,304/- and the remaining two years EMI will be Rs. 1,93,536/-. So in total, the customer will end up paying Rs. 3,81,584/- for a Rs. 5.55 lakh car. The customer’s saving will be Rs. 1,73,416/- although he will really end up saving Rs. 2.90 lakhs since the interest payment is there whether you opt for this scheme or not.

There are very few cars which fit in this scheme since most cars go above Rs. 6 lakhs in price. A diesel car will be easier to live with since your minimum running has to be 1500 kms a month.

I have many doubts about this scheme

1.   Will people like this idea?

2.      Will you like being a part of a big advertisement?

3.      What if the company where you are working is a competitor for the company advertised on the car?

4.      What if the general public mistakes youas a representative of the company being advertised and asks you for a demonstration and for free samples?

5.      They might think of you as a travelling salesman?

6.      The general public might think that you are a part of a cab company?

7.      How would the car be taxed - as a private vehicle or a commercial vehicle? 

1.      

Drones Delivering Pizzas

Ann Arbor based Domino’s Pizza recently made headlines when the company’s independent U.K. franchisor released a YouTube video of a drone delivering pizzas.

A one-minute video featuring the “DomiCopter” flying over fields, trees, and homes to deliver two pizzas has become hugely popular .

 The story   made national and international news, appearing on websites for CNNMoney, US News and World Report and several other media outlets. Despite the interest, the DomiCopter won't be put to regular use. The project was a one-time deal, according to Danny Bowles, spokesman for Domino’s Pizza Group in the U.K.

“At Domino’s we’re always looking to innovate and find new ways to deliver our pizza and a DomiCopter could fit the bill perfectly,” Simon Wallis, Domino’s Pizza UK/Ireland sales and marketing director, said in a statement. “We are the number one pizza delivery company and we are committed to staying in that position. We had a lot of fun putting the video together. It would be great to think that one day pizzas could fly!”

British creative digital agency T + Biscuits worked on the project. The company said it’s received many inquiries on when people may get pizzas delivered by drone.“You will have to just wait and see…. and then wait,” T + Biscuits.

Chris Brandon, spokesman for Domino’s U.S. business, said there are no plans to use drones here."We heard about the promotion, likely, at the same time you did -- and it does not involve our U.S. stores," he said in an email.