MxMIndia

Tag: LG

  • Four out of Top 20 brands based in Mumbai

    LG ranked India’s most attractive brand; Sony and Samsung Mobiles follow

     

     

    India’s Most Attractive Brands 2016, a study comparing the ‘attractiveness’ held in brands, has been released. TRA Research, a Comniscient Group company, has listed the brands that have successfully elicited the desire-based yearning in their audience. LG has taken the crown of India’s Most Attractive Brand in the just launched 2016 study. The South Korea-based Consumer Electronics giant has taken the 1st rank, moving up from 2nd place last year. Sony ranks 2nd, followed by the two-time reigning attractiveness champion from the previous reports, Samsung Mobiles which ranks 3rd this year. Honda makes an entrance at the 4th position also leading the Automobiles category. Samsung, in the Durables category leaped from rank 87 in 2015 to rank 5 this time round. The highest placed wholly-Indian conglomerate in this year’s listings, Bajaj, is India’s 6th Most Attractive brand.

     

    The second Indian brand in the list, Mumbai-based Tata is ranked 7th, which has slipped three places since last year. Maruti Suzuki comes in at rank 8 and Airtel towers up nine ranks from ranking 18th last year, followed by Nokia at 10th position. Another Mumbai-based brand Godrej (All India rank 13), Dell (All India rank 15) and Hewlett Packard (All India rank 17) made an exit from the top 10 Most Attractive Brands listings this year. A total of four out of the top 20 Most Attractive Brands were based out of Mumbai. Other city-based brands that were listed include Angel Broking (All India rank 491) and Big FM (All India rank 715).

     

    “LG’s progress in the report is admirable, having dethroned the two-time reigning personal-gadgetry brand Samsung Mobiles to be India’s Most Attractive Brand for 2016. The consumer electronics segment has always been high on Attractiveness—the magnetic pull that brands exert—evidenced by the fact that three out of the top 5 Most Attractive Brands for 2016 are from this segment. Tata’s ranked 7th this year has a dip of more than 20 per cent in Attractiveness Quotient as compared to the previous report.

     

    Brand Attractiveness is an invisible, overwhelming pull that subtly but irresistibly draws audiences towards itself. In order to influence and inspire their consumers, brands have to mold their outgoing communications to constantly and proactively accentuate their brand appeal,” commented N. Chandramouli, CEO, TRA Research.

     

    Among the 1000 brands 276 categories were listed. Some of the by Advertise” href=”#60137872″> important category leaders in Attractiveness are Colgate (FMCG), Amul (F&B), Bata (Personal Accessories), Raymond (Apparel) and Airtel (Telecom).

     

  • The LG Mosquito Away TV, developed based on Indian insight, is equipped with an Ultra Sonic device which uses sound wave technology only

    LG highlights mosquito-repelling features of TV in latest ad campagn

    By A Correspondent

     

    LG has unveiled its latest campaign titled LG Mosqito Away TV. The reason to come up with this communication was to first establish the believability in the product and capability of its performance.

     

    The LG Mosquito Away TV, developed based on Indian insight, is equipped with an Ultra Sonic device which uses sound wave technology only, that does not emit any harmful radiations. This technology works on the principle of ultrasonic waves that reduce a mosquito’s ability to detect CO2 exhaled by humans and become inactive and flies away. The selected UF is absolutely safe and harmless for humans, as per norms set up by global organizations. This technology does not use any chemicals, used in other toxic repellants, nor does it require refilling or any other maintenance and the most important part of the technology is that this independent operation which does not require the TV to be on to make the mosquitoes fly away.

     

    Given the uniqueness of the product the brief was to create a communication that stands out. In essence the communication needed to be as outlandish as the product is perceived to be.

     

    The communication will be promoted primarily on Digital given that digital as a platform offers reach, measurability & reference.

     

  • Korea's competing biggies Samsung and LG have found their way to the top in India

    Life’s looking good for Samsung & LG

     

    By Ravi Balakrishnan, Moinak Mitra & Amit Bapna

     

    Call it a tale of two strategies. Korean chaebols Samsung and LG waged furious battles against each other and the rest of the Indian consumer durables industry a decade ago. Today, LG claims leadership, but that’s not enough. It wants a bigger slice of the premium market. Samsung shot up the sales and perceptual charts with a record run from its mobile division. It is now trying to transfer some of that equity to its durables business. As Nilesh Gupta, CEO, Vijay Sales puts it, “Most marketers are looking for profitability and not market share apart from the mobile category. They tell us if you cannot sell, don’t buy. They used to go halfway down the crease to hit the ball, now they are on the backfoot. Four or five years ago, they considered India an emerging market and were investing. Now they are telling India we want profits.”

     

    Both players however claim they are just as aggressive as always but are just showing it differently. BE examines how Korea’s finest are finding their way

     

    The LG Story

    With the launch of the G2, LG made its belated entry into the stratospheric premium range of mobile handsets. In a market where consumers are notoriously hard to impress, the phone has some unique bells and whistles to justify its Rs 40,000 plus price tag. LG India’s managing director Soon Kwon hopes such products will be if not the norm, at least less of an exception. And it better happen sooner than later given his ambition to make the Indian operations among LG’s Top 3 businesses globally, by 2015.

     

    LG currently claims a 30% market share for itself in the consumer durables space. According to Gfk figures sourced from the industry for August 2013, its share for microwaves is 39%, washing machines is 38%, refrigerators is 37%, TVs are at 25% and air conditioners at 23%. And yet, the company is in the throes of a struggle. For too long, it has been perceived as a mid-priced middle class oriented brand and for the last few years has been trying to become a more significant force in the lucrative premium segment.

     

    It’s the biggest challenge since its launch in 1997 and the years in which LG transformed from an unknown entity to a ubiquitous presence. Marketing consultant Nabankur Gupta observes, “It got into a volume game when multinationals were perceived to be playing on value. Apart from heavy advertising, certain products were subsidised.” Consumers soon believed they were getting a good deal across the portfolio: a multinational brand at an Indian price tag. Rajeev Karwal, founder and CEO of Milagrow who headed sales and marketing for LG at the time, recalls the many coups the brand pulled off. In a market dominated by exchange offers, LG launched a TV for 7,500 claiming to stand for no scheming. One of its campaigns featured the grandiose claim of making other televisions history. It was all backed by a unified concept says Mr Karwal: “We’d positioned the brand on the health platform which ran through all their communication whether it was ‘Golden Eye’ TVs for wrinkle free eyes or ‘Health Wave’ microwaves. By building innovative technologies and smart marketing, we came across as a lot bigger than we were.”

     

    The health platform is gone, today. More significantly, so is the frenetic momentum. The reasons vary depending on who you ask. To LG’s critics it is evidence of the brand becoming complacent and driven by diktats from the Korean headquarters. On the flipside, LG believes the strategies needed during a launch phase are quite different from those required to sustain and grow.

     

    Addressing LG’s move away from emotional advertising, Mr Kwon says, “For the last 15 years, we may have been known as more of a family oriented brand. But in fact we are also strong in the very high end. We have decided to focus on a different element to the brand which is technology.”

     

    A visible manifestation of LG’s newfound, some would say belated aggression is its mobile handset strategy. Rival brands dove headfirst into smartphones and even dabbled with the nascent tab category because it positioned them on the cutting edge. LG instead was sluggish on smartphones and ignored tablets entirely. It now has to run a lot faster. It’s doing so with a slew of models that offer more for slightly less and a strong dealer push. It’s stated goal is cornering 10% of the smartphone market by 2014 . Kwon expects a 150 crore turnover from the G2 alone.

     

    LG’s priorities on the marketing mix have shifted too. Like many of its contemporaries, it’s investing a lot more on the in store experience. It has around 2000 exclusive stores, a necessity in a market where modern trade has performed below expectations, according to Mr Kwon.

     

    Where LG claims its priorities have not shifted is coming up with India specific products. These are especially relevant to the rural sector where business growth is higher than in developed markets. LG’s mix for these markets includes the ever cool refrigerator and tougher LCD TVs. To reach these price conscious customers who do not have access to easy finance, the units are priced lower and their features and benefits communicated in detail, according to Sanjay Chitkara, head – marketing, LG India. The urban segment on the other hand will be the focus of LG’s Diwali campaign which according to Mr Chitkara is built around launches of premium television sets.

     

    However, others see confusion in LG’s attempt to straddle various segments. According to Mr Karwal, “Samsung changed completely around the launch of its smartphones. It began to internationalise communication and moved out of low end TVs and washing machines. They got the platform LG used to be known for — the cutting edge of technology.” As for LG, he believes, “The company is more focused on margins than marketing. A lot of their inefficiency and poor product planning gets covered up since they there is no alternative for the trade. If today there was a good marketing company that can synergise all its divisions they will have a run for their money.” Given entry barriers have only gone up since LG rushing the market in the early 2000s this falls squarely into the easier said than done category. Mr Karwal concedes, “It has one of the strongest nationwide distribution channels which itself is a competitive advantage.”

     

    LG has a new sign off these days with It’s All Possible. Instead of replacing the old Life’s Good slogan, the new line sits alongside it as a supplementary message according to Kwon, drawing the consumer’s attention to a vast assortment of products in different categories. It can also be seen as an internal affirmation: a brand reassuring itself that it can in fact try to be all things to all people.

     

    The Samsung Story

    It’s typically hard to define the point at which the fortunes of men and brands change. Not so with Samsung. It all changed in June 2010 with the launch of the Galaxy smartphone series. Suddenly from being one of the many consumer durable players dabbling across washing machines, air conditioners, TVs and yes mobile phones, it began to set the agenda for mobile telephony. It dethroned doughty stalwarts like Nokia and Blackberry and currently accounts for 31.5% of the Indian mobile handset market estimated to be worth Rs 35,946 crore according to a Voice & Data survey.

     

    Samsung executives still nevertheless have sleepless nights. There’s the all too real fear of complacency setting in. Atul Jain, senior vice president – consumer electronics, Samsung who has spent two years in the mobile division admits, “We are completely on the edge as far as the next wave is concerned. I’m not satisfied with S III and the Note doing well or with being the first ones to have launched LED smart TVs, two years ago. That streak in our DNA of looking for the next stage is critical. The lack of it is why a lot of companies fall by the wayside.”

     

    Samsung is trying to keep the momentum going. Vineet Taneja, country head – mobile business Samsung India recalls telling the global chief about what he believed the country needed, only to have a product in hand four months later. “Any other company might have taken 12 or 18 months,” he says, speaking of Samsung Grand a mid price smartphone which packed the gigantic screen size of the Note series into a more affordable model.

     

    For people who wanted the most high end devices and couldn’t afford them, Samsung was the first to start EMI schemes. Mr Taneja admits, “Affordability doesn’t necessarily mean cheap. It means I will make great products accessible so consumers don’t have to shell out so much.” It has helped Samsung move to outlets that were hitherto beyond its reach. Mr Taneja speaks excitedly of a small 2X2 store in Hyderabad with an EMI machine which guarantees a turnover. The demand is outpacing the financial system’s ability to keep up. Mr Taneja has met small shopkeepers in a tehsil at Hajipur, Bihar who wanted the EMI option in spite of there being no credit card holders. Asim Warsi, VP – sales, mobile business, Samsung says, “We would love to make, if we could, Samsung mobile like an impulse brand — people come, decide, buy and walk out — like a packet of chips.”

     

    Accessibility runs a lot deeper than affordability. One of the next big initiatives is getting local language interfaces in smartphones. Mr Warsi observes, “People in interior Gujarat or Maharashtra are not poor for sure — they’ll now have access to internet and mobile experience in a language that is their own.”

     

    Samsung’s task is to transfer the considerable equity gained via its mobile business to the other parts of the portfolio, inducing excitement even in age old categories like televisions and refrigerators. Given the speed of technological obsolescence in Smart TVs, it is trying to future proof its models. For instance, the evolutionary kit fitted into Smart TVs upgrades the set to the latest software and firmware a year down the line.

     

    Not all of its technology is that esoteric. Samsung’s tweaking refrigerators to work out how often they are opened, for how long and to run accordingly. It could lead to 40% cut in electricity bills according to Jain who used this as a plank for a theme campaign this March called ‘Samsung’s on, Saving’s on.’

     

    Chief marketing officer Rahul Saighal sees a healthy rub off taking place between Samsung’s various divisions: “Smart televisions are contributing to Samsung’s image as an innovation leader while our success with devices like Galaxy S4, Note 2 and now Note 3 are further reinforcing that perception.”

     

    Even a notoriously hard to please marketing industry is currently a part of the Samsung fan club. Says Nabankur Gupta, “Every phone with a Samsung badge spells value even at the lower end. The consumer will be favourably predisposed even when there’s a durable to be purchased. Both LG and Sony need to create that.” Gautam Talwar, chief strategy officer, Rediffusion YR believes Samsung is no longer competing with LG or Sony or Canon at a mother brand level but with Apple. He says, “It stands for new age technology and hence can pass the software codes to all other categories rather than the hardware codes which brands like LG land up owning. It needs to move the consumers from the utility and feature enriching platform to the magical world of what technology is capable of doing.”

     

    However, a former Samsung executive at a rival firm has a few words of caution, “Nokia got into the trap of believing that they know how to control technology, Samsung should be careful to avoid the arrogance that comes with the leadership position. Its approach has been primarily of a hardware manufacturer more focused on driving hardware specifications than (industry design) that would appeal. The seamless integration of software with hardware is something that is missing.”

    Source:The Economic Times

    Copyright © 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • In LG management reshuffle, Sanjay Chitkara is new chief marketing officer while Sanjeev Agarwal is sales boss

    Chitkara is new LG CMO, Agarwal sales head

    By Writankar Mukherjee

     

    LG Electronics India, the country’s largest electronics company, has replaced its heads of marketing and sales as part of a top-level reshuffle seen as a reaction to its failure to keep pace with revenue target.

     

    LK Gupta, chief marketing officer, has put in his papers after leading the role for five years and will be replaced by Sanjay Chitkara, who was earlier heading sales administration. Amitabh Tiwari, who was heading sales, will switch roles with Sanjeev Agarwal, who was the head of business excellence.

     

    They will report directly to company MD Soon Kwon, a senior company executive said.

     

    “Probably, the headquarters felt a big change was required since LG India is falling short of its revenue target,” the person said, requesting anonymity. “While changes in top management is an annual affair undertaken every December, but never before have there been such sweeping changes like now.”

     

    A detailed questionnaire sent to LG India’s corporate communications team on Wednesday to confirm the management changes and its business plans remained unanswered.

     

    The company has also made some changes in its product group heads and split the role of the head for refrigerators.

     

    Manish Gupta, the product group head for televisions, will now head microwave oven. Vijay Babu, who was heading microwave ovens, will look after frost-free refrigerators while Praveen Gosain-presently regional manager for East zone two that includes markets like Orissa, Jharkhand and Bihar-will head direct-cool refrigerators. Vishal Karan, who was the regional manager for Bengaluru, has been made the chief of modern trade. All the changes will be effective from January.

     

    While LG India is yet to give any indications about its sales this year, trade sources expect the company to fall short of its revenue target of 20,000 crore for the current fiscal. Last year, it grew marginally to 16,200 crore from 16,000 crore in 2010, falling short of a target of 20,000 crore.

     

    Trade sources say during Diwali, LG sales grew by 10% against a target of 15%-20% growth.

     

    LG has been trying to reposition itself as a premium brand. However, industry insiders say it has made limited success in this regard and Indian consumers regard Sony and Samsung more premium brands. The only major exception is the 3D TV segment where LG has emerged the market leader with 37% share, as per GfK-Nielsen retail audit for January-October 2012.

     

    India is identified as one of LG’s key growth markets and the company had earlier expected its Indian operations would outgrow the parent company by 2015.

     

    Source:The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • With big-budget marketing spends, attractive offers and easy payment options woo on offer, is it a customer’s Diwali this year?

    This Diwali, spend some more!

     

    By Tuhina Anand

     

    Come festive season and the consumer durable giants go all out to woo their prospective customers. After all, this is the time when consumers are amenable to the idea of getting that new refrigerator or purchase that LCD notwithstanding the dreaded economic slowdown or high inflation. All the leading players in this segment have worked out elaborate plans to get customers to opt for their brand and spending mega bucks to seeing their plan materialize and reap in benefits.

     

    LG India has planned big budget spends on marketing to attract customers this festive season. Giving a peek at their plans, L K Gupta, Vice President, Marketing LG India, said, “This festival season we are offering a true 0% finance scheme on selected products to encourage consumers to upgrade to latest products and enhance their lifestyle. There are many other exciting combo offers like BD blu ray player+ 3 3D movies with Cinema screen 3D TV, another offer is 3D camcorder & 8GB USB with 55 & above Cinema screen 3D TV, 3D blockbuster movies in 8GB USB with Cinema 3D TV and many more exciting offers . In the Home Appliance Category LG is offering 10 years warranty on the compressor of the select models of Refrigerators. This offer is also valid on the motor of front load and selects models of top load washing machine.”

     

    So there is a mix of attractive offers like exciting combos and then finance schemes to woo customers. Sony India has allocated a budget of Rs 150 crore (Sep-Nov 12) towards marketing activities for this festive season. In fact, the company is expecting revenue of Rs. 2,850 crore, during the period of September and November 2012 period from the Indian market and hopes to achieve 50% sales growth over last year’s festive sales. These numbers were shared by Kenichiro Hibi, Managing Director, Sony India.

     

    Sony India has introduced an extravagant lucky draw for its consumers- This Diwali Bond with Sony. Sony’s has tied-up with Sony Pictures Entertainment for the much awaited James Bond action thriller – Skyfall as a part of its marketing initiative for the festive season. Besides, attractive offers and innovative products, Sony India has a dedicated multi-media marketing campaign for its flagship product category. The campaign has been created keeping in mind the flavour and zest of the Indian festive season. This campaign is on-air from mid October till end of November, 2012.

     

    To top it all, to ensure that all the offers are even lighter on the customer’s pocket, the payment procedure is made convenient and affordable by Zero Percent Finance Offer and Zero Processing Fee. Sony is offering attractive EMI offers on Select Credit Cards as well. Some of the popular Sony products line up that has offers include- Cyber-Shot, VAIO and Bravia. These products also make for a great gifting option.

     

    For another consumer durable major Samsung, it is focusing on ‘smart home celebrations’ for this festive. The company is targeting around 25% growth for the festival season and there are gifts with the purchase of Samsung audio visual and home appliance products.

     

    “Smart Home Celebrations” offers attractive gifts on the purchase of Samsung audio visual and home appliance products. Mahesh Krishnan, Vice President, Consumer Electronics Business, Samsung India said, “It is our endeavor to make the auspicious festive season even more special for our consumers by giving them exciting gifts with their purchase of a Samsung product. The gifts available to consumers range from Samsung tablets for our hi-end Series 7 and 8 in Smart TVs and select Side by Side refrigerators to mobiles for select Home Appliance products.”

     

    The consumer promotion and Samsung’s innovative product range will be supported with a multi-media advertising campaign as well as below the line marketing activities during the auspicious period of Durga Puja and Diwali.

     

    “Based on our strong product lineup and festival offers, we are looking at a 25% jump in sales during the festival period,” said Mr. Krishnan. The Samsung ‘Smart Home Celebrations’, promotion is valid from October 01 till November 30, 2012 nationwide, and for West Bengal, Orissa, Assam and North Andhra Pradesh from September 29 till November 18, 2012.

     

    There are offers that include that in the Home Appliances category, the Samsung Side-by-Side refrigerators will entitle consumers to a free Galaxy Tab 7.0, while on the purchase of frost free and direct cool refrigerators, front and top loading washing machines, or the Samsung dishwasher, the Company will give away a free Samsung mobile phone. On the purchase of 46″ and above size Samsung Smart LED/ Plasma TV models in Series 7 and 8 will entitle consumers to a Galaxy Tab 7.0 and an 11 by 1 easy consumer finance scheme. So offers are in plenty that is sure to appeal to the customers.

     

    Panasonic India is betting big on this festive season and has rolled out a range of special offers under its nationwide campaign ‘Celebrations for Life’. These offers announced by Panasonic in presence of their Eco brand ambassador Dia Mirza promises assured gifts for consumers looking for new purchases to commemorate the spirit of festivity. Panasonic is confident that this appealing campaign will play a big role in lifting the dampening sentiments created in the consumer durable space throughout the year with rupee depreciation and price hike.

     

    Daizo Ito, President, Panasonic India said, “It is well known that no other country holds so many festivals of antiquity with such joy as does India and this is what makes it a great nation. Panasonic is committed to the Indian market and that buying new products during this time is considered auspicious. Thus we are announcing a variety of consumer schemes and offers on purchase of a wide range of products.”

     

    Manish Sharma, Managing Director, Consumer Product Division, Panasonic India too added, “As the season of celebrations is about to start, we at Panasonic India are delighted to add to the festive spirit with several enthralling schemes for our customers. We have announced various offers so that our consumers can enjoy the festivities with the latest Panasonic offerings in a pocket-friendly manner. Through these offers, we are targeting a turnover of Rs. 1200 crores nationally this festive season.”

     

    As part of channel support programme during festive celebrations, Panasonic has also designed special offers that will enable channel to get maximum benefits from Panasonic products.

    Whirlpool of India has unveiled its festival promotion called ‘A Kitchen In Your Honour’. The consumer promotion for the festive period promises to give real value to its consumers and is expected to generate excitement and a heightened desire to purchase Whirlpool products during the festival season. Apart from a gift on every purchase, the consumer will also be entitled to a scratch card through which 1200 lucky customers stand a chance to win Whirlpool kitchen appliances. Additionally, the company is also offering a bumper prize of Kitchen makeover worth Rs 2.5 lakh to fuve lucky customers. Further enhancing the festive spirits, Whirlpool has also introduced new products and giving away gifts. The Diwali promotion and the newly launched products will be supported in print and radio and through a host of innovative activities such as OOH, Digital and Outdoors. The total advertising and marketing spend earmarked for the Diwali promotion this year is in the range of Rs 10-12 crore.

    Commenting on Whirlpool’s offers during the festival season, Shantanu Dasgupta, Vice President- Corporate Affairs & Strategy, Whirlpool India said, “Whirlpool believes in  understanding and launching  innovative products, which would delight our consumers, thus this festive season, we are happy to launch ‘A Kitchen In Your Honour’ promotion for all our customers.  Our new premium range of products has been specially designed keeping in mind the needs of a homemaker.  We intend to give our consumers best in class products and offers that would bring magic to their homes this Diwali. The brand is targeting a growth of 20% over last year and aims for sales of around 900 crores during this festive season.”

    So there are deals galore and attractive offers thus enticing the consumers to get that bigger screen or the better camera. So get ready to loosen your purse strings this festive season.

     

  • Spurred by brand activation spends, such non-advertising spends, called below-the-line (BTL), are gaining share over advertising spends at several leading consumer companies

    HUL, LG etc look beyond regular advtg

    By Bhanu Pande & Ratna Bhushan

     

    PepsiCo is organising seven-a-side soccer tournaments in neighbourhoods, LG is showcasing its durables in residential complexes, Cadbury is standing outside super markets with its cookies, Hindustan Unilever is standing with a shampoo to assess the state of your scalp… These are some of the biggest companies, with hefty advertising budgets. Yet, to market their wares, they are increasingly looking beyond conventional, passive advertising and spending more on marketing activities where the connect with the target consumer is active and direct.

     

    In marketing lingo, such on-the-ground events and promotions are called ‘brand activation’, and they generally form the largest chunk of a company’s non-advertising activities. Spurred by brand activation spends, such non-advertising spends, called below-the-line (BTL), are gaining share over advertising spends at several leading consumer companies.

     

    According to LK Gupta of LG Electronics, 60 per cent of the company’s marketing

    budget is going towards BTL activities, against 35-40 per cent three years ago. “With increasing choices, the consumer has become more discerning,” said Mr Gupta, vice president-marketing. “Therefore, ground activations are gaining traction due to the added impact they give beyond the media clutter.”

     

    Elsewhere, Homi Battiwalla, category director, PepsiCo India, labels the increase in his company’s BTL spends as “significant”. “Today, consumers have started saying, ‘show me something real’,” he added. In April, in its advertising, PepsiCo India switched from cricket to soccer, and launched a campaign, ‘change the game’.

     

    Alongside, it hit neighbourhoods with ‘T-20 Football’ – a seven-a-side, 20-minute soccer tourney. “We realised plain advertising wasn’t enough,” said Mr Battiwalla. “We wanted to build the idea, and create an experiential engagement that is grassroots with our target audience.”

     

    All this is translating into more business for firms like New Delhi-based Candid Marketing, which helps companies with their brand-activation strategies. Its managing director Atul S Nath says its business is growing 25 per cent a year. “Clients are questioning the delivery from plain advertising,” he said. “Delivery from brand activation is almost immediate, though the latter has its limitations.”

     

    Mr Nath predicts that, in the next five years, the split between BTL and ATL (above-the-line, or advertising) spends will be equal. Currently, companies spend more on mass-media advertising than on events and promotions. He, however, feels, advertising budgets will not fall in absolute terms, but more of the incremental allocation will be to BTL activities. “Overall spends on BTL will significantly rise as people begin to see its impact,” he said.

     

    Mr Gupta of LG agrees, and attributes it partly to the rise of online marketing and social media, which conveys details of a product quicker than conventional advertising. “The influencing touch points are shifting,” he said. “The customer comes armed with his own research. So, conversion with demo and explanation has become an area of great focus.”

     

    It’s also the current tight business environment, said brand consultant Harish Bijoor, who sees advertising symbolising ‘theme’ and BTL representing ‘sales’. In a tough market, cash flows are an imperative. “So, they are putting their big bucks on BTL, and money is certainly moving from theme to scheme,” he said.

     

    Mayank Shah of Parle Products says the idea is to engage with the consumer despite the higher costs. “In case of traditional advertising on television or print, cost per contact is very low,” said Mr Shah, group product manager. “BTL activation is costlier, but it’s the quality of engagement with the consumer that makes a lot of sense. He feels, it is very important to generate trials in food products, which is the company’s main product category. “Sometimes it’s necessary to make consumer sample your products,” said Mr Shah. “And where there’s a big rural and semi-urban opportunity, we need to go BTL.

     

    Dabur India too has been relying heavily on BTL activities in tier-II and tier-III towns. “With rural consumers increasingly moving towards branded products, just leveraging mainstream media is not enough to connect with them,” said George Angelo, executive director-sales, Dabur.

     

    The company has the Dabur Amla ‘banke dikhao rani pratiyogita’, a rural beauty and talent hunt where rural women are groomed by trained beauticians. Another of its recent BTL activity was the Dabur Gulabari Miss Rose glow contest – a regional model hunt from state capitals, with the eventual winner receiving a wildcard to the Femina Miss India contest. “A BTL initiative involving Vanya Mishra (a wildcard who was one of the winners at the Miss India contest) resulted in Dabur Gulabari reporting its highest ever monthly sales in April,” said Mr Angelo.

     

    Source: The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • Of late, it has taken a beating globally, trounced by the iPhone on the one hand and a gamut of Android powered devices on the other

    What’s ailing RIM’s Blackberry drive globally & in India?

    By Ravi Balakrishnan

     

    Don’t let the kid on the next seat in the train, furiously typing away on his or her BlackBerry fool you. Despite the fact that Indian youth have bonded over BBM, the performance of the parent RIM and maybe even the launch of its latest product in India have revealed a number of holes in the phone maker’s strategy. BE asks what’s troubling BlackBerry, boys?

     

    Minutes before Research In Motion, the makers of BlackBerry, made an announcement at a press conference in Delhi, there was a definite vibe of anticipation. Tech hacks idly wondered just what was going to be unveiled, given that BlackBerry has a fairly conservative release schedule.

     

    The more optimistic were holding out for a glimpse of BlackBerry’s OS 10 rumoured among the brand’s faithful to be a potential Android-slaying, iOS-wrecking killer operating system; one that would propel BlackBerry back to the top of its game. But instead, BlackBerry amid much fanfare and celebrity preening unveiled the Curve 9220.

     

    At the Q&A and after, the questions flew thick and fast: why only a 2MP camera? Why no 3G? And why such a stiff price tag for a phone that lacked these two features?

     

    The device was launched at Rs10,990; inexpensive for brand BlackBerry, but a tad pricey compared to other mobiles, even smartphones if one considers budget Android models from Samsung, LG, Spice and Lava among others.

     

    The Curve offered unique features like a quick access BB messenger button and, critically, long battery life, something of a rarity in the smartphone category.

     

    FM radio, a feature that’s bog standard even for phones that are sold at a tenth of the cost, made its way to Blackberry Curve. But to an audience weaned on revolution, having to settle for evolution was a disappointment. It was a dangerous reaction for any company to deal with; especially a tech firm that’s been gradually losing its reputation as a pioneer.

     

    As one of the first smartphones, BlackBerry had a dream run starting with the enterprise segment and slowly making inroads into the consumer space. ‘Sent from my BlackBerry’ soon became a ubiquitous signature; first for emails from globetrotting CEOs and later among the rank and file as well. Except of late, it has taken a beating globally, trounced by the iPhone on the one hand and a gamut of Android powered devices on the other.

     

    Its most recent financial results reveal a loss of $125 million. And shipments of 11.1 million, down 21 per cent from the previous quarter. Reviews for its Torch series have been unenthusiastic and the game changing OS10 is expected to show only in the latter half of 2012. An industry insider said: “They decided to step back and relax and that cost them. The engine has stopped innovating for some time.”

     

    In some countries like India though, BlackBerry still counts among the contenders. According to Frost & Sullivan, it’s at the third place in the Indian smartphone market with a share of 15 per cent, trailing behind Nokia’s 35 per cent and Samsung’s 40 per cent. It’s attracted a strong app developer network of 30,000 in India up from 4,000 two years ago, according to a company source.

     

    More importantly, for a product that’s worldwide reputation veers towards the stodgy, it has a strong traction with the youth. Abhishek Chauhan, senior consultant, ICT Practice, Frost & Sullivan, South Asia & Middle East observed: “In India, they’ve been taking segmentation seriously, targeting the youth. I don’t feel India will be a danger space for them if they launch affordable devices and data plans for their consumers here.”

     

    The youth connect has been built in part on the back of initiatives like the BlackBerry Boys campaign; a co-branded effort with Vodafone, currently in its second year. On the distribution front too, BlackBerry was quick to realise there was a world beyond the metros. It is currently present across 250 cities and according to RIM India’s managing director, Sunil Dutt, it continues to expand.

     

    However, BlackBerry India has not remained unaffected by the pressures facing its parent. The pricing strategy has changed: the jury is out on just why this is happening and what it will lead to. Of late, there have been price cuts across its portfolio.

     

    Coupled with the relatively ‘inexpensive’ tag on the new phone, it indicates either a thawing on part of the company or an act of desperation depending on who you ask. Mr Dutt explains the price cuts: “Sometimes when you reach economies of scale, they allow you to pass on benefits to customers.” This becomes important as the phone reaches towns and cities that want the device but find the price tags forbidding.

     

    Mr Dutt has a different take on discounts. He believes they are not an indication of a brand in trouble but an invitation to consumers to be a part of an ecosystem and experience. “We want to reach more consumers. A lot of them want an affordable solution and we provide just that,” he said.

     

    Marketing consultant Shripad Nadkarni of MarketGate however cautioned that the strategy could well be a double edged sword: “It helps garner short term sales, but the brands future depends on how they keep in synch with innovations of the competition. They can reduce the price of existing products but need to buffer up the offering to be a serious player.”

     

    There seem to be several options and suggestions available to BlackBerry, many offered gratis by various tech columnists. Part of the problem according to industry pundits is that the brand strayed too far away from its enterprise roots and ran the risk of being “everything to everybody.”

     

    The industry insider said: “It is still a high stable platform that gets jobs done in least number of steps. They need to recognise what’s driving them as a company and drive it even harder. BlackBerry 10 could change the way people think about the  company. The question is whether it will be too little too late.”

     

    For the longest time, BlackBerry believed the experience its products offered was good enough for it to command a premium. Even as rivals ramped up the megapixels on cameras, and made their phones more music, game and leisure friendly, BlackBerry’s phones remained on a pound for pound basis, a tad underpowered.

     

    But with the competition evolving at a furious pace and throwing in more for less with each generation of phone, it may be a matter of time before even the BlackBerry boys begin to wonder if the experience is worth the price.

     

    Source: The Economic Times
    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • The Indian brands today are doing what the Korean brands did when they entered India way back in late 90s, mapping their rivals' strengths and weaknesses

    Korean durable brands outwit Indian giants

    By Rajiv Banerjee & Ravi Balakrishnan

     

    There’s frenetic activity inside the corporate office of a leading consumer durable brand. As the financial year hurtles to an end, the head of marketing is racing against time, tying up operational plans for the 12 months of the new fiscal. This involves meetings with the board and also key dealers to keep the network abreast of the gameplan.

     

    The excitement among the marketing team at the consumer durable maker is palpable, and not just because of the strategy being crafted. 2012-13 may well be the year in which, after a long time, Indian consumer electronics and white goods makers stand more than just a fighting chance of taking on their more successful Korean rivals.

     

    “When the Korean brands were behaving like Indian companies, they were doing very well. The minute control moved out of this country to Korea, it’s all changing,” says the marketing head, who wishes to remain anonymous.

     

    This change in the Rs35,000 crore durables and electronics segment in India – where possibly after more than a decade, the incumbents (the Koreans) seem vulnerable – is not lost on rival brands. Specifically, the indigenous brands like Onida, Godrej, Voltas and Videocon, which once ruled the roost but were thrown off the perch as Korean brands LG and Samsung caught the Indian consumer’s imagination and her share of wallet.

     

    Today, according to market estimates, Samsung and LG together have a dominant combined share of 34 per cent in ACs, 45 per cent in refrigerators and an equal combined share in washing machines (semi-automatic category). But in the ACs, from the period January-December 2011, Samsung’s market share fell from 19 per cent to 11 per cent.

     

    Similarly, LG slid from 28 per cent to 23 per cent, but Voltas jumped from 12 per cent to around 17 per cent in the same time frame. In the CTVs segment, Videocon is running almost neck to neck with leader of the pack LG with Samsung in the third position. And the year ahead may well be comeback time for the domestic camp.

     

    Sure, the growth rate for the industry dipped to 8-9 per cent against the projected 14-15 per cent in 2011. But that’s not fazing the Indian warhorses, a few of whom are blueprinting big-bang entries into new categories. Godrej Appliances, which has a presence across categories like refrigerators, washing machines, air conditioners and microwave ovens, is running pilot projects in small geographies in the area of consumer electronics, according to Kamal Nandi, VP, sales & marketing, Godrej Appliances. Those in the industry aware of the developments indicate that Godrej is giving colour televisions a serious thought although Nandi refuses to elaborate on the nature of the pilot project.

     

    Similarly Voltas, say rivals who are aware of the matter, is readying for a more aggressive play in air conditioners (ACs) to close the gap with LG; this after overtaking rivals like Samsung and Carrier. “In the last 3 to 4 years, one can see the comeback of Indian brands both at the shelf level, as well as in the minds of the consumer. Brands like Videocon and Godrej have gone through major identity revamps. Accurate positioning or not, but it has certainly brought back the buzz for them in the home appliances domain,” says Deba Ghoshal, head of marketing at Voltas.

     

    In many ways, the Indian brands today are doing what the Korean brands did when they entered India way back in late 90s. The Koreans mapped the strength and weaknesses of each Indian player across categories and then went about eating into the share of established brands like BPL and Onida in colour TVs, and Godrej and Videocon in appliances. Sensing that they were no match for the product strength of the Korean brands, the Indians manufacturers changed their strategy.

     

    “They tactically withdrew from categories where they thought that they will not be able to match the product strengths of their Korean counterparts. However, they did not let go of their core competencies. Instead of spreading themselves too thin, they maintained focus on their main categories,” says a senior marketing professional from one of the Indian consumer durable brands.

     

    A brand like Onida resorted to re-branding in an attempt to project a more youthful image, and in the process moving away from its iconic ‘Devil’ (Neighbours’ envy, Owners’ pride) advertising.

     

    “I wouldn’t say the campaigns from the last couple of years were path-breaking but we want to be a little unconventional to appeal to young nesters, which is our defined target group,” says Anand Ramadurai, head of marketing at Onida.

     

    Over the years, to withstand the Korean onslaught, brands like Onida decided to focus on regions and consolidate the space there. “In markets like Mumbai, we are relatively weak since the cost of doing business is very high. But the south is a strong market across categories, as is Gujarat, and the north is strong in air conditioners,” explained Mr Ramadurai.

     

    Other marketers chose their areas of comfort and protected that turf. For instance, Videocon maintained a strong presence in consumer electronics – its market share according to estimates in CTVs stands at 26 per cent. Godrej focused sharply on the direct cool refrigerator category (overall in refrigerators, Godrej stands at 15 per cent). And Voltas consolidated its presence in ACs with a market share of around 17 per cent at the end of 2011. “In many sub-categories, Indian brands have successfully protected their turf, and lead the market,” observed Mr Ghoshal of Voltas.

     

    At the same time the focus of the Korean brands is getting diffused somewhat as they get more serious about mobiles and tech products. For Indian manufacturers, it’s an opportunity to go in for the kill. Sure enough, Onida, Videocon and Voltas are pushing further into home appliances and ACs.

     

    Apart from stable pricing and better dealer margins, where Indian brands are trying to emulate the Koreans is faster go-to-market. Implementation, the players realise, is the key to instilling confidence in the trade that the companies mean business.

     

    “We are trying to break into the MBOs (multi-brand outlet) in Mumbai as well and are present in Vijay Sales and Reliance Digital where we were not there at all a month or two ago,” said Mr Ramadurai. “The recent campaign from us has certainly brought in the numbers, both from brand volumes as well as from a market share perspective,” added Mr Ghoshal.

     

    However, there are challenges ahead for Indian players. Nabankur Gupta, founder of Nobby Brand Architects who has worked with Videocon and Philips in the past, says Indian business houses, by typically chasing volumes, run the risk of entering the zone of commoditisation. They neglect the fact that many of the lower-volume, higher-end products add value – not just to the bottom line – but to the brand’s image.

     

    The Koreans and Japanese brands, says Mr Gupta, still rule in the premium, innovation- led space across categories. His take on the Indian brands is as follows: Videocon has regained number one position as a consumer durables group but not as a brand. Onida has totally lost out on appliances.

     

    “They are concentrating on TV and have held their own in terms of volumes but there’s very little innovation. It’s an also-ran brand. They still go on basis of old loyalties and pricing and a lot of dealer push,” reckons Mr Gupta. Mr Ramadurai of Onida counters that Onida is definitely not a price warrior. “What we do is launch products that are innovative in some manner. Being an Indian company, our insights are seen to be better.”

     

    Another area of concern for the Indian brands, market observers feel, is the lack of investment in technology; where Koreans and the Japanese brands have proved to be miles ahead.

     

    “In the conventional products like CRT TVs, Indian brands may stake a claim with an advantage on cost. But MNC brands have been able to invest in technology across smart TVs, LEDs, home theatres and mobile. Without investment in tech and manufacturing, Indian brands cannot dominate the market,” said Vijay Narayanan, head of marketing at Havells and formerly with Korean brand, LG.

     

    Finally, if Indian brands are to make their very own great leap forward, brandbuilding has to become a year-long pan-India affair rather than sporadic bursts around the festive season. According to Mr Ramadurai, Indian companies that are listed on the stock exchange cannot splurge on communications as they are accountable to shareholders. The cost of high spends that don’t quite show up on the bottom line and on margins can wreak havoc on the stock price.

     

    “Most multinationals in durables are not listed here and so can afford to make losses and make it up someplace else. Haier was extremely aggressive year before last and Toshiba was a year ago. They come and go in cycles but we can’t do that,” shrugs Mr Ramadurai.

     

    One option is a greater reliance on the more cost-effective digital media. It’s an area that Onida confesses to just starting to get its feet wet. It’s currently evaluating options of e-tailing and harnessing its presence on social media.

     

    Rebranding, pushing the trade and distribution may allow the Indian players to narrow the gap with rival Koreans. But there’s one camp that is slowly but surely making its presence felt as well – the Japanese. Even if Indian brands are successful in dethroning the Korean brands, rest assured the Japanese will be snapping at their heels.

     

    Source:The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved