NMIMS Solution 2020 June
1. In a competitive market of commodities, Ali plans to launch Organic milk in a country where people are new to the concept of organic and heavily rely on synthetic/chemical products. If Ali wants to launch this product, then how can branding help him. Define the name for the product & come up with a brand manual including all brand elements. Also design a marketing plan to push the product.
2. What is Strategic Brand Management Process that the Ali’s organic milk brand should follow? Explain the 4 steps.
3. Mother Dairy Fruits & Vegetables, a company with a billion-dollar (Rs 4,200-crore) turnover, has been a well-established player in NCR known for products the firm has been largest seller of milk in NCR , with 65% of the revenue being contributed by milk. Amul entered Delhi market few years back and in 2011 with in a span on 4years it defeated mother dairy in terms of market share. Amul procures fresh milk and packages it. Mother dairy adds powder milk in its products to the tune of 40%. This spoils the taste of the product. Also Amul is credited with more awareness and knowledge about its products amongst consumers. Amul is a leader in the ice cream segment of the country. Their capacity to develop products and gain market leadership helped them gain substantial share in the NCR region in the milk segment raising question marks on the brand equity of the company. Mother Dairy has been market leader in NCR for 35 years. Losing ground to Amul in 2011 in the milk segment is forcing company to rethink its strategy. They plan to increase their capacity and also expand procurement of the milk. One of the regions why Consumer shifted to Amul has been difference in the taste of the milk. Amul milk is fresh where as a portion of Mother dairy milk is reconstituted. Mother dairy sells through its own outlets and home delivery is not possible where as Amul used channel and home delivery of the milk is possible. Mother dairy milk price has been less than the price of Amul milk, still a huge number of mother dairy loyal customers moved to Amul. Now Mother dairy is restructuring its strategy and systems to combat Amul.
a. What would you suggest to Mother Dairy for its revitalization plan (5 Marks)
b. What more challenges you foresee for the brand? (5 Marks)
Previous Sem NMIMS Assignment
Q1. An entire generation of Indian TV viewers grew up on some terrifying advertising. Cease Fire commercials had conflagrations breaking out in urban settings as householders went about, oblivious. And then there was the ad for Saffola, full of ambulance lights and sirens, panic-stricken faces and heart rate monitors. The brand called itself ‘Life Insurance’, positioning the oil as a bulwark against heart disease.
And the strategy worked with Saffola being among the first brands to talk about health — albeit in a very panic inducing manner.
The longevity of the `1000 crore plus brand can be traced to that strong positioning. Chief marketing officer, Anuradha Aggarwal says: “Very early in the journey, we found an amazing, unique place of heart health. Someone with fore- sight chose to do fear oriented ads and the rest, as they say, is history.” But only a small chunk of history. Over the years, Saffola realised merely scaring consumers into buying was perhaps not the best strategy. From fear it moved to convincing at risk consumers to adopt better, healthier practices. Aggarwal says, “We moved from pure fear to things that strike fear: the signs of the unhealthy heart.”
The brand also acknowledged the difficulty in getting people adopting a healthier lifestyle with its ‘Kal Se’ commercial about a serial procrastinator, who’d rather let his kid ride the exercise cycle, or who changes into gym clothes only to fall asleep again. However, consumers and the category were moving a lot faster than the brand. Even as Saffola pitched itself to consumers showing the first signs of slowing down, the broad trend was preventive: not allowing one or one’s family members to get to that stage in the first place. Says Aggarwal, “We realised Saffola was in danger of becoming the oil for the unhealthy as opposed to the oil for people who want to be healthy and have an active, fit heart.” The brand is now about a continuous investment in health.
A strategy that’s driven its expan- sion into adjacent categories. Saffola has the credibility required for consumers to comfort- ably place its products on the dining table. Besides, through variants like flavoured oats — a category that Saffola claims leadership in — the brand can comfort- ably ride the everyday health wave. Saffola is gunning for ` 200 crores in this space by 2018, according to its 2015-16 annual report. Says Aggarwal, “We are market leaders in flavoured oats because we’ve been cracked a fantastic product suitable for the Indian palate.” Saffola continues to be the undisputed leader in premium health oil, according to Aggarwal.
Even at a time when the affluent Indian’s obsession with health is leading to them buy super premium olive oils at two or three times the price. The brand is meeting the challenge with new blends like Aura a combination of olive and flaxseed oil. On the communication front, Saffola has moved past its scare mongering on TV. It runs its own website fitfoodie which has healthy recipes of traditional favourites ratified by nutritionists and dieticians.
Under Saffolalife, an initiative begun in 2005, the brand pro- motes healthy lifestyles and organises heart health checks. When asked how malleable the brand is, Aggrawal believes, “We’ve succeeded when there was a fit and coherence and a fundamental difference from the rest of the world. We are strongly positioned on proactive and preven- tive heart health, and these conditions have to be met.” It also explains why variants like finger food brand Zest failed. Says Aggarwal, “We needed a go to market that understood impulse purchases and the product was not as good. After that, we’ve made sure we have very hard internal guidelines for product development. Unless we meet those standards, the products don’t go out.” Saffola’s brand journey finds favour with an Indian marketer with considerable retail and FMCG experience, who wishes to remain anonymous.
He says, “Given there was no awareness of health, Saffola used fear and people bought it. But now with the entire country having a consciousness of health and gym culture coming in, it’s the right transition.” He believes the expansions make sense given Marico’s two flagships: Parachute and Saffola earn their spurs in categories where growth potential is limited. And so, it’s necessary for Parachute to extend into skin and body care and Saffola to take on a more overarching health plat- form. He believes, “20 or 30 years ago, people worried about health only once they discovered they had problems. Today, everyone is conscious of being healthy and wanting to look young.” He however believes Saffola needs to make a stronger play for the millennial demographic: “It’s seen as mama papa brand. But the 30 year and younger demographic are willing to pay premium. Brands need to change with the world. Can it be health for youngsters or does it want to be an older consumer’s health brand is an answer only Saffola can give.
Evaluate the positioning of Saffola and discuss how the positioning strategy has led to the brands success.
Q2. Bollywood star Salman Khan is returning to the cola space after a gap of three years, this time to endorse brand Pepsi, a move that has surprised a few experts. The two-year deal is estimated at Rs 15 crore, two external industry officials said.
A PepsiCo spokesperson confirmed the signing up of Khan as new brand ambassador of Pepsi but declined to confirm the financials of the deal.
“The year 2020 will see brand Pepsi create a scale 360-degree campaign that will reflect the self-confidence of today’s youth as effortless as Salman,” the person said.
Brand Pepsi will base its summer 2020 campaign on Khan’s upcoming action comedy movie Dabangg 3, the spokesperson said. A few marketing experts expressed surprise at the PepsiCo move, considering Khan’s macho image vis-à-vis Pepsi’s more romantic, playful image, plus the actor’s age and some controversies he has been associated with.
To amplify these efforts, Pepsi released the Har ghoont mein swag “anthem” featuring Patani, Shroff and rapper Badshah. Released by T-Series the song is available for streaming on YouTube, Gaana, Jio Saavn, Hungama, Amazon Prime Music, Spotify, Wynk, iTunes and Apple Music. With music and dance covered, next up was cricket. PepsiCo which has an on-going partnership with the Board of Control for Cricket in India (BCCI) leveraged its sport association during India versus Australia series in February. There the swag symbol took center stage in stadiums and on TV screens. Says Bhagat, “This allowed us to bring music and cricket together as one popular music performer announced the ‘Swagster of the match’, after each match, during the India-Australia series. For a ‘culture brand’, it is important to dive into all these three streams.”
Hooked or not?
“Even as the cola companies are trying to move towards water and juices, the healthier drinks, the two companies cannot give up on their mainstay brands just yet, that is, the colas,” says Sunil Alagh, founder and chairman, SKA Advisors, a consultancy firm. Alagh believes the use of social media allows these companies to keep chatter alive around their main brands.
Industry watchers believe this campaign has helped Pepsi get its “mojo” back. Says brand consultant Harish Bijoor, “Pepsi has reclaimed its position among the youth. Through the campaign Pepsi can be seen talking to millennials in their language.” Former marketing director, PepsiCo India, Vani Gupta Dandia agrees. “Using TikTok and music streaming apps to release the anthem is a good way to extend the campaign. This allowed Pepsi to rebuild its brand equity,” says Dandia.
While the brand’s old tagline ‘Yeh dil maange more’ might be tweaked to ‘Yeh dil maange more swag’, what remains to be seen is how Pepsi’s newfound swagger converts to sales.
The Endgame For categories like beverages, and particularly colas, distribution is the make-or-break game. Under the company’s ‘Away from home’ strategy, the beverage maker has tied-up with quick service restaurants Domino’s, KFC, Pizza Hut, Burger King and Subway and multiplex operator PVR. Says PepsiCo’s Tarun Bhagat, “An aggressive agenda has been drawn by the team to increase distribution across offline stores and online channels over the next five years.”
Swag Not War Cola marketing has come a long way from the days of the legendary Cola Wars. Pepsi’s ‘Nothing Official About It’ that took the fizz out of the official sponsor of the 1996 Cricket World Cup is perhaps one of the greatest examples of ambush marketing. Pepsi’s current campaign couldn’t be farther from that traditional tactic. Says Lloyd Mathias, former head of PC marketing, HP Asia Pacific and Japan, “Cola as a category has lost its relevance among consumers, as electronics, apparels took over.” He adds, “As a result, ‘cola war’ as a marketing concept became redundant.”
Examine the brand personality of Pepsi and its relevance in a promising market like India.
Q3. Hair oil and edible oil maker Marico will enter the Rs 4,500-crore skincare market in the country by extending its two-decade-old coconut hair oil brand, Parachute, to body lotion and other skincare products, a person directly involved with the development said.
First off the block will be a body lotion at entry-level pricing to compete in the mass segment, the person said on condition of anonymity. The company has carried out a lowkey test exercise in the east, The strategy is aimed at reducing dependence on Parachute hair oil,” the person said. “In this case, the company hopes to ride on Parachute’s purity and value-for-money attributes.” Marico CEO (consumer products business) Saugata Gupta declined comment.
The company will enter the cluttered skincare market under the Parachute Advansed umbrella and compete with Hindustan Unilever’s Vaseline and Pond’s, German company Beiersdorf ’s Nivea, L’Oreal’s Garnier and Johnson & Johnson’s Neutrogena. Analysts and industry watchers say the success of the move will depend on how much marketing and distribution muscle Marico can infuse in the brand.
“Success of brand extensions are generally linked closely to the parent brand’s attributes; and depends on how closely these are aligned to the consumer’s perception of the brand,” says consulting firm AT Kearney Partner and VP Debashish Mukherjee.
The success of extensions of strong brands is not always certain. Cereal maker Kellogg’s extension to biscuits flopped.
Marico hasn’t had much success with brand extensions
But Reckitt Benckiser’s Dettol is a classic succession of an antiseptic medicinal liquid to antiseptic soap. Marico so far has had limited success with brand extensions.
Also, there is strong competition in the skincare market, although with an annual rate of 20% it’s one of the fastest-growing consumer product categories.
About six years ago, Marico had extended Parachute to shampoos, positioned on the ‘naturals’ platform. But that did not succeed. But Parachute Advansed has various haircare variants like styling products and after-shower gels.
Marico has a skincare presence with its Kaya skincare clinics. But it does not have a presence in the packaged skincare segment. Marico’s hair oil brands include category leader Parachute and Nihar, which it had acquired in 2006 for close to Rs 220 crore. (Source:https://economictimes.indiatimes.com/industry/cons-products/fashion-/cosmetics-/-jewellery/marico-to-launch-parachute-into-skincaremarket/articleshow/9865069.cms)
a. Evaluate the brand extension strategy of Parachute.
b. Comment on the success probability of the brand extension and the potential benefits to the parent brand?