Umbrella Branding
As with all effective brand strategy, umbrella brands require a single message, an expression of a commonsense benefit grounded in human emotion that opens the way to own the conversation within a business category.

Umbrella brands abound in business; examples include Virgin, Kellogg’s, Sony, and location brands such as Japan, Manitoba, and St. Louis.

With an umbrella brand, the number of interactions the consumer has with the brand increase significantly, thereby reinforcing the brand values, and it helps transfer the goodwill to new products and categories. But the umbrella brand needs to be focused: It must stand for the same values across the category or range of products, and have the same emotional link.

Generally, consumer durables and services brands have used umbrella branding, while FMCGs have not, but even they have resorted to brand extensions rather than new launches.

Independent brands only make sense when the product clearly has a different proposition from the company brand; like Lexus from Toyota and Swatch from Omega.

In the case of Asian Paints, there were so many sub-brands, there was a reduction of media weights for advertising each entity. Then, the company shifted to a brand-centric portfolio, which involved a change of logo, product names, packaging and advertising. But the response from the trade and consumers has been positive, overall brand synergy and shop presence have increased, and the advertising is more effective, he added.

So unless the product is clearly different in the mind of the consumer, umbrella branding is the way to go. NIVEA is a great international example of an Umbrella Brand

ref - http://fmcg-marketing.blogspot.com/2007/11/umbrella-branding.html

PRICING STRATEGY

PRICING STRATEGY

Pricing Strategies


PREMIUM PRICING.

Use a high price where there is a uniqueness about the product or service. This approach is used where a a substantial competitive advantage exists. Such high prices are charge for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights.

PENETRATION PRICING.

The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom in order to

ECONOMY PRICING.

This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc.

PRICE SKIMMING.

Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented.

Premium pricing, penetration pricing, economy pricing, and price skimming are the four main pricing policies/strategies. They form the bases for the exercise. However there are other important approaches to pricing.

PSYCHOLOGICAL PRICING.

This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example 'price point perspective' 99 cents not one dollar.

PRODUCT LINE PRICING.

Where there is a range of product or services the pricing reflect the benefits of parts of the range. For example car washes. Basic wash could be $2, wash and wax $4, and the whole package $6.

OPTIONAL PRODUCT PRICING.

Companies will attempt to increase the amount customer spend once they start to buy. Optional 'extras' increase the overall price of the product or service. For example airlines will charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other.

CAPTIVE PRODUCT PRICING

Where products have complements, companies will charge a premium price where the consumer is captured. For example a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor.

PRODUCT BUNDLE PRICING.

Here sellers combine several products in the same package. This also serves to move old stock. Videos and CDs are often sold using the bundle approach.

PROMOTIONAL PRICING.

Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free).

GEOGRAPHICAL PRICING.

Geographical pricing is evident where there are variations in price in different parts of the world. For example rarity value, or where shipping costs increase price.

VALUE PRICING.

This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales e.g. value meals at McDonalds.


Predatory pricing
(also known as destroyer pricing) is the practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors. If the other firms cannot sustain equal or lower prices without losing money, they go out of business. The predatory pricer then has fewer competitors or even a monopoly, allowing it to raise prices above what the market would otherwise bear.
In many countries, including the United States, predatory pricing is considered anti-competitive and is illegal under antitrust laws. However, it is usually difficult to prove that a drop in prices is due to predatory pricing rather than normal competition, and predatory pricing claims are difficult to prove due to high legal hurdles designed to protect legitimate price competition.

Limit Pricing
A Limit Price is the price set by a monopolist to discourage economic entry into a market, and is illegal in many countries. The limit price is the price that the entrant would face upon entering as long as the incumbent firm did not decrease output. The limit price is often lower than the average cost of production or just low enough to make entering not profitable.

Loss Leader
In marketing, a loss leader (also called a key value item in the United Kingdom) is a type of pricing strategy where an item is sold below cost in an effort to stimulate other, profitable sales. It is a kind of sales promotion.
REFERENCE - http://fmcg-marketing.blogspot.com/2007/11/pricing-strategies.html

Is HUL Trying To Kill REXONA Now with the launch of SURE?....?

HUL has launched a new brand in the Indian market - Sure . Sure is an antiperspirant brand from Unilever's global product portfolio. The brand is claiming to be the largest selling antiperspirant brand in the world. Sure is sold extensively in UK and Europe.


Sure is an interesting brand for a variety of reasons. The launch of Sure brand marks another era in the deodorant market in India. The deo market is divided into categories like Body Spray, Deo with germ fighting properties and Antiperspirants. The Rs 700 crore Indian deo market is dominated by the body spray categories. The launch of a global brand like Sure is going to develop the antiperspirant market in India.

For the promotion of Sure, HUL has roped in the actress Asin. The brand is currently running the launch campaign across South India featuring the celebrity.

Watch the launch ad here : Sure

Since the antiperspirant category is new to the Indian market, the brand has tried to educate the customer about the product category in the launch phase. The launch ad essentially talks about what the product is and the comparison between ordinary deo spray and antiperspirant.

Another interesting aspect of Sure brand launch is the question mark over the fate of Rexona. The fact is that Sure is Rexona !!!
While Sure is marketed across England and Europe, the same product is marketed as Rexona in other global markets including India. There are rumors that with the launch of Sure in India, HUL may kill Rexona deo brand in near future.

According to newspaper reports , Rexona which created the deo market in India is now a marginal player in the market with hardly 5% share. HUL virtually messed up the Rexona brand (soap) with lot of experiments like migrating to Hamam. Even in the deo category, Rexona was virtually neglected in terms of promotional spend.

Sure is marketed with the same tagline and brand elements as Rexona. Both Rexona and Sure carries the same logo - the Tick mark and the same tagline " It won't Let You Down". Sure is also using the slogan " No Sweat " in the launch campaign to reinforce the product benefit.

It is unlikely event where you see two different brands using the same logo and tagline. It does not make any marketing sense unless there is an underlying thought of migrating one brand to another. It can be assumed that Sure will launch its full range of deos and Rexona will be slowly taken off the shelves.

The deo market is witnessing intense competition these days with n number of launches happening. The trend these days seems that get a good fragrance, outsource production and do high profile marketing.

Even the antiperspirant market has seen new launches with Garnier launching its product in the category recently. By launching Sure , HUL is making sure that it does not leave any part of the category to the competitors.

ref; marketing Practise

PIAGGIO GEARING UP FOR A COMEBACK

Piaggio has announced plans to launch Vespa, its Italian line of scooters in India. The company will be launching the Vespa LX 125 scooter by end of 2012

A plan for production and sale of two-wheelers in India was approved by Roberto Colaninno, Director, Piaggio & C. S.p.A. at the company's board meeting held in Milan recently. The first model to roll out of the factory will be the Vespa LX 125, which has been specially designed for the burgeoning scooter market in India. According to the plan, Piaggio will setup an all-new facility in India for manufacturing two-wheelers and it will be supported by Piaggio's commercial Indian subsidiary and leader in Indian three-wheel light commercial vehicle market - Piaggio Vehicles Private Ltd.

The total investment to setup the new plant is said to be in the region of 30 million euro for the financial years, 2010 and 2011 and the investments will be covered under a Three Year Plan approved by the company's Board of Directors in the meeting. The new plant has a capacity of producing 1, 50,000 units annually and it will be operational by the end of 2012 with the launch of the LX 125. According to the plan, the firm aims to sell 1, 10,000 scooters by 2015.

India has the second-largest two-wheeler market in the world and it grew at an average annual rate of 7% between 2004 and 2009. Last year, over 8.4 million vehicles were sold in the country out of which, scooters accounted for 15% of the total market share. The scooter segment has seen strong growth of more than 13% with scooter sales totaling 1.3 million units in 2009.
POSTED BY - Team ZigWheels 08 Jun 2010

TATA Indica - Managing Product Life Cycle Effectively

Indica is a brand that is an epitome of persistence. Tata Motors through Indica has demonstrated how to manage product lifecycle effectively. The brand which was launched in 1998 has passed through many hurdles. The brand successfully transcended the initial flaws, bad customer /expert reviews and brickbats to become one of the largest selling cars in the Indian auto industry.

The brand survived and thrived because of the constant focus of Tata Motors to improve the product continuously. More than the product innovation, it was the value proposition that forced customers to choose Indica despite all those nagging troubles. You can see lot of Indica customers cribbing about the bad service and constant trip to the service centers but sticking to the brand because of the value proposition. You cannot get a diesel car with that much space at the price at which Indica is selling ( so far).

Tata Motors has been continuously tweaking the brand over these years sometimes making quantum leap in the quality and refinement of the product. A snapshot of the brand's evolution is given below

1998 - Indica announced
2001 - Indica V2
2004 - Rejuvenated Indica V2
2005- Indica V2 Turbo Diesel
2006- Indica Xeta
2008 - Indica Vista

The brand made a quantum leap in 2008 with the launch of Indica Vista. The entire brand personality changed with the launch of Vista. The product's looks and feel had changed completely and it was a rebirth for Indica.
The changes in the product was not limited to exteriors. Indica began sporting different types of engines from Fiat which gave a new perception of quality to the brand.

At the pricing also, Tata Motors consciously raised the Vista brand to a higher level . The Vista is pricier than the original V2 thus reducing the attractiveness of the brand to the Taxi segment. At a price range of Rs 4 - Rs 5 Lakh, Indica Vista is not a cheap diesel car. It was an upward stretch by the brand.

The Indica brand portfolio consists now of three sub-brands V2, Vista and Xeta.

V2 is the most economical of the lot and is the original Indica. This product is retained because there is still huge demand for V2 at that price point. Within the V2 range, there are three variants which includes the Indicab which is for the Taxi segment. Price of this sub-brand ranges from Rs 3,50,000 - Rs 3,95,000

Next sub-brand is the Vista. Vista is the new generation Indica and Tata Motors would like this brand to take over the leadership position from V2 in future. The brand is targeting the discerning Indian consumer with its value proposition and good looks.Vista has lot of variants satisfying the various needs of the customer. The Indica Vista Aura is the premium range that sports many goodies that premium brands claim like ABS, Airbags etc. Vista also comes in Petrol version sporting the Saphire engine. Prices range from Rs 3,90,000 - Rs 4,90,000 ( apprx). Within the Vista range, customers are given lot of engine option including engines from Fiat.

Xeta is the petrol variant of Indica V2. I am not sure about the future of Xeta since the petrol segment is heavily competitive and compared to Maruti and Hyundai, Indica Xeta's value proposition is not that attractive as the diesel option. Prices range from Rs 2,72,000- Rs 3,00,000).

The positioning across the brand portfolio remains the same. All the brands focus on the value proposition. But these sub- brands sports different taglines

Indica V2- More car per car
Indica Vista- Changes Everything ( Surprise Yourself is the new tagline)
Indica Xeta - Makes much more car sense.

Vista recently relaunched itself with Drivetech 4 technology and is now sporting a new tagline Surprise Yourself .

Indica in a way is an example of good marketing practice. The brand continues to evolve and is a pleasure to watch.
CRTSY - MARKETING PRACTISE

iAds New Way of Advertising

Mobile is the undisputed champion of media across the globe with more than 4.1 billion people using mobile phones. That’s about six in 10 people, compared with less than three in 10 who access the internet through a PC. It is easy to understand why advertisers are excited about using mobile as a tool for marketing. The ubiquity of the mobile, combined with the ability to target, track, measure and reach people at key purchase decision points, quickly transforms into advertising nirvana. So why then is mobile advertising only expected to account for a paltry 2% of the digital media market’s spending in 2010 (according to eMarketer)?

Apple CEO Steve Jobs has the answer: “Because most mobile advertising really sucks.” He is right. Screens are small, which leads to disappointing creativity that makes it difficult for an ad to successfully compel a viewer to invest the time away from their current activity to click through. But Apple’s new iAd platform has these possibility to change that, at least for the projected 100 million Apple mobile device users.

It is a relatively small number of the total global mobile population, but as Jobs pointed out in his April presentation it is a very attractive demographic for advertisers. Furthermore, AdMob reported that the iPhone OS accounts for 50% of mobile web traffic and, in places such as Japan, Apple’s iPhone accounts for 72% of the smartphone market, according to Tokyo-based MM Research Institute Ltd.

With iAd, not only has Apple re-thought mobile advertising with the entire iPhone ecosystem in mind, but it has also drawn on its experience as one of the world’s most enjoyed brand advertisers, leading to several features that sets iAd apart. Users will come across iAd within an application. At first, the ad will look similar to the current small banners that are common, but the meat of the ad presents itself after a user initiates interaction.

Paramount to Jobs is that the iAd experience does not take a user away from their current app. Because of the new iPhone OS4 multitasking capabilities, a user can interact with an iAd without closing their current app and go back to where they left off when they are done with the ad. Jobs believes that if people don’t have to “pay the penalty of having to find their way back to their app” it will result in more clicks (or taps) for advertisers. An improved user experience may be just the thing the mobile advertising industry
needs to propel itself further into the plans and budgets of advertisers.

iAd intends to present advertisers a mobile ad platform with more impact, delivering “interactivity and emotion”, as Jobs puts it, by giving creatives a richer canvas to work with, blurring the line between entertainment, information, apps and advertising.

It sounds very promising, but there are questions and challenges.

One unknown is the quality of the metrics and data advertisers will be able to get on iAd campaigns. According to registered developers, there are restrictions on third-party targeting and measurement, which many
advertisers rely on for precise and unbiased information about their digital marketing.

All the data will flow through Apple, presumably on the technology that came with its recent Quattro acquisition.

Targeting will benefit from the detailed understanding Apple has about users from its iTunes and App Store behaviour, however, it is yet to be determined how well this approach will be received by marketers.

The iAd interactive and emotional experience is also not alone in the mobile
advertising market. Companies such as Medialets offer similar units, which also allow for rich and immersive creative.

Furthermore, while the number of Apple apps downloaded far surpasses any others, the Apple App Store isn’t the only game in town. Nokia, BlackBerry and others have moved into the apps distribution business. Then there is the price tag.

The Wall Street Journal recently reported that being part of the iAd launch could cost up to US$10 million, with regular campaign pricing eventually in the US$1 million range. There is no denying that Apple has proven time and time again its expertise at making technology simpler, fun and sexier. Apple has redefined categories so don’t be surprised if mobile advertising is next.

The author is Jason Kuperman, vice president, digital development, Asia Pacific, Omnicom group.

Wagon R - 'Old Wine In New Bottle'

One of India's best selling car brand got better. Recently Maruti Suzuki launched the new Wagon R in the Indian market. The new spruced up model features the famed K Series engine and with a brand new look.

Wagon R has been a run away success since its launch in 1999. So far the company has sold around 8.8 lakh units of Wagon R (source). Infact Wagon R is the second largest selling car brand from Maruti's product portfolio.

Wagon R operates in the A2 segment of Indian car market which is witnessing most of the competition in recent times. Most of the car majors are viewing this segment seriously and some of the new brand launches like Chevrolet Beat and Ford Figo has been highly welcomed by the consumers.
This intense competition has prompted Maruti to relaunch the upgraded version of Wagon R with a new engine and renewed look. It is interesting to note that Wagon R recently launched a high profile brand campaign featuring the Celebrity Madhavan.

Maruti have aggressively responded to the competition from Chevy and Ford by keeping the price point of the new Wagon R at the range of Rs 3.5 lakh - 3.85 lakh. Maruti has taken the risk of cannibalizing other brands like Estillo and A Star. The rejuvenation is also a part of Maruti to take the brand from the Maturity stage of the lifecycle stage to the growth path.

The new launch is expected to give much needed boost to the brand. Wagon R is still relevant in the Indian market. The users have vouched for the comfort and drive-ability of this car in the urban jungle. The company feels that the brand still have lot of steam left in it.

The company is calling the new Wagon R as the Blue Eyed Boy. The brand has retained Madhavan as the brand ambassador in the new avatar also.

Most of the auto review comparing Wagon R , Figo and Beat has rated the competitors as better than Wagon R. But what will be driving this brand will be the Maruti endorsement . Although Chevy and Ford have established themselves in the Indian market, Maruti still holds tremendous brand equity among Indian consumers. But competitors are not sitting idle. When Chevy launched Spark to take on Alto, it ran a highly successful campaign guaranteeing Zero maintenance cost for three years. That gave lot of boost to the sale of Spark.
Wagon R in a way offers less risk for the discerning Indian consumers compared to the new entrants in terms of cost of maintenance, spares , service etc. That will help Wagon R hold on to its pivot position atleast for now.
CRTSY - MARKETING PRACTICE