Showing posts with label proctor and gamble. Show all posts
Showing posts with label proctor and gamble. Show all posts

Saturday, December 7, 2013

Brand Update : Rin Vs Tide , The Strategy

According to latest news report, the Calcutta High Court has restrained HUL from airing the controversial campaign against Tide. HUL has been given 72 hours to comply with the order ( Source)

The high decibel comparative ad of Rin generated huge buzz in the market. The direct comparative campaign evoked mixed reaction across the media. That single controversial ad generated crores worth of buzz about the brands in question.

The current high profile aggressive stand of Rin has a background story. There was a proxy war going on between Rin and Tide since December 2009. During December, P&G launched the low priced variant of Tide branded Tide Naturals. Tide Naturals was priced significantly lower to the Rin. Tide Naturals was launched at Rs 50 per Kg , Rs 10 for 200 gms and Rs 20 for400 gms. Rin was priced at Rs 70 per Kg at that time.

The reduced price of the Tide variant was an immediate threat to Rin. Since Tide already has an established brand equity, Rin was bound to face the heat. Although HUL had another low priced brand Wheel priced at Rs 32/Kg, Tide was not in the same category of Wheel.

Rin had to cut the price to resist the market share erosion. As discussed elsewhere in the blog, HUL was facing a steady erosion in the market share in most of the categories. In the detergent category itself, the brand faced a market share fall of 2.5% in December 2009. With P&G starting a price war, HUL had to react and it did by cutting the price of Rin by 30% to Rs 50 per Kg. ( Source ) .

HUL also reacted to the Tide Natural's price war in a ' Guerrilla Marketing ' way. It took P&G to the court regarding the Tide Natural's advertisement. The contention was that Tide Naturals was giving the impression to the consumers that it contained natural ingredients like Sandal. The court ordered P&G to modify the campaign and P&G had to admit that Tide Naturals did not contain any Natural ingredients. ( another example of a brand swaying over to unethical marketing practices).

While P&G opened a war in the price front, HUL retaliated by opening two war fronts. One was the direct comparative ad and other through the court order asking P&G to modify Tide Naturals Ad and to admit that Tide Naturals is not ' Natural'.

I think that it was Rin which won the Round 1 of this war. It generated enough Buzz about the brand with all the media talking about the campaign. Rin was also able to neutralize the aggression of P&G to certain extent.

Tide chose not to respond because further fuel to the fight can highlight the fact that Tide Naturals does not contain any 'Natural Ingredients " which may negatively affect the brand's standing in the consumer's mind. So it is better to play the role of a " poor" victim at this point of time.

P&G can celebrate because of the free advertisement it got for Tide Naturals because of the comparative ad of Rin.

It is interesting to see the academic angle of this concept called Comparative advertising. From my little digging of information, it was evident that the academic research is also clueless about the effectiveness of comparative advertising. There are enough evidence to prove that comparative ads work better than non-comparative ads and vice versa. So academicians are as clueless as the practitioners in this regard.

According to academic literature, Comparative ads are those ads which involves directly or indirectly naming competitors in an ad and comparing one or more attributes in an advertising medium ( Alan T. Shao, Yeqing Bao, and Elizabeth Gray,Comparative Advertising Effectiveness:A Cross-Cultural Study Journal of Current Issues and Research in Advertising, Fall 2004)

There are two broad types of comparative ads. One is the Direct comparative ads which compares the competitor in more than one attribute. The second type is the Indirect comparative ad which projects the brand as the Leading Brand rather than comparing on certain attributes.

In the marketing world ( globally) comparative ads are commonly used across categories. Some of the relevant observations regarding comparative ads are given below.

  • Comparative ads are perceived to be beneficial to the consumers since more information is provided to him by the competitors. Comparative ads are encouraged in certain markets like USA by the regulators because it increases transparency and provides more information to consumers.

  • The comparative ads generally result in counter arguments which often creates such a noise that it discounts the original argument/information. Consumers tend to discount the claims by both the competing brand because of the arguments.

  • Comparative advertising strategy is more effective for smaller brands rather than established large brands. By challenging a larger brand through comparative ad , the small brands tend to derive more acceptance and awareness than the larger brand.

  • Comparative ads are found to be more effective for categories where consumers tend to use their analytical mind. Comparative ads tend to fail where consumers use imagery while evaluating the brands. For example, products like automobiles use comparative ads extensively and with effectiveness.
  • There are also studies which shows that male consumers are more attracted towards comparative ads compared to female consumers.

Although Indian marketing world have seen lot of comparative ads, the current Rin Vs Tide is a rare case of direct comparative ad where the brand has taken the competitor brand's name and challenging it head on. That is the main reason behind the media noise about the campaign.

P&G India always was a laid back competitor in the FMCG market . Despite having the product portfolio and market strength , it never realized its potential. The company was happy with their minuscule market share in the various categories in the FMCG business . I am not sure whether P&G will react aggressively to the current HUL onslaught and if at all they did ,will it sustain the fight for long.

Related Post

Brand Update : Rin Vs Tide

Rin Strikes Again. But for the better or worse ?

Last day, I saw the latest ad for Rin , a comparative ad directly against the competitor Tide. It was a shocker.

Watch the ad here : Rin Vs Tide

This is the first time that HUL has directly compared Tide with Rin. The ad even have the tagline " Rin offers better whiteness than Tide".

According to ET, P&G has took HUL to court over this ad. The ad was timed to coincide with the long weekend so that HUL could play the ad before the Court hearing.

HUL is currently under severe pressure from its aggressive competitors. The market share of most of HUL brands has come down drastically over the last few years. The brands are facing pressure at all price points. Along with the domestic pressure, HUL is facing the heat from the parent Unilever. The Indian operations is under direct scrutiny by the Unilever CEO Paul Polman.

Last year, HUL tried to restructure its brand portfolio and increased the adspend on most of the core brands. But it could not arrest the decline of the shares of some key brands to the competitors like P&G , Godrej and ITC.

This desperation has clearly manifested in the latest ad for Rin. What on earth do a brand like Rin get into a direct comparative spat with its competitor. The ET report mentions that the ad was created because HUL executives feel that Tide is slowly neutralizing the whiteness (point of difference) USP of Rin. Hence Rin is trying to tell the consumers that it has more whitening property than Tide using a direct comparison.

In my personal opinion, Rin chose a wrong way of telling its superiority to the consumer . Last time I saw a direct comparative ad war was between Horlicks and Complan. Horlicks started the direct comparative ad and got a very very aggressive reply from Complan. The current status is that Horlicks stopped the comparative ad and Complan is continuing its aggression against Horlicks. It was an unnecessary move from Horlicks which woke up a laid-back competitor like Complan. I think that in that ad war, Complan won over Horlicks ( not in sales terms but in share of noise ).

The same thing is going to happen with Rin. It is going to lose this war primarily because there was no need for a direct comparison with Tide atleast in the ads. . If you observe the ad, 22 seconds of the 30 second ad is dedicated to Tide alone. That means in around 75% of the time, the ad talks about Tide. Interestingly the ad even mentions the USP of Tide as " It has fragrance and has whitening property". Then the rest of the 8 seconds talks about Rin. So if HUL has blasted some 30 lakh in the current promo, 22.5 lakh of it was spent on promoting Tide. Why should you ever mention your competitor in your ads ???

Watching the ad, one homemaker commented " I never knew Tide and Rin was from the same company, otherwise how can they show these two brands together in the same ad ? " .

The current campaign lacks any long term objectives. The brand is chosing a short-term path when the issue was a long-term competitive threat.Instead of spending such money on this crap ad, HUL could have run some serious sales promotional campaigns which could have prompted consumers to opt for Rin . It could have filled the retail outlets with Rin POPs. It could have run retailer campaigns to fill the shelves with Rin rather than Tide. HUL still has a huge distribution reach and strength compared to P&G, it could have won the war hands down had it capitalized on the retailer support alone. If Rin was too worried, it could have bought back Big B as the brand ambassador which could have added punch to the tagline " Chamakte Rahna".

Now the outcome of the ad war will be that HUL will be retrained by ASCII or the Court from further playing the ad . It means that Rin had adapted an unethical means against the competitor which will cause an unwarranted blemish on the brand reputation. Second outcome is that it will encourage Tide to be more aggressive in the market. Tide now has been officially and publically acknowledged as the competitor for Rin. Third outcome is that an ad war will start which will benefit the respective advertising agencies and the media.


Related Brands

Thursday, December 5, 2013

Brand Update : Rin Vs Tide Round II

After the high profile direct attack on Tide, Rin has entered the second stage of its aggressive marketing campaign. The brand has started a new campaign called the Rin 1 crore Challenge. The brand is running a commercial featuring the challenge.

This time, Rin has refrained from directly naming Tide . The brand is using the traditional format of masking the competitor in this challenge campaign. The brand has announced Rs 1 crore prize money if any other detergent can prove that it provides more whiteness than Rin ( conditions will definitely apply).

The new ad strikingly resembles the Rs 1 crore purity challenge campaign of HUL's Pureit brand. Pureit's successful campaign may have prompted Rin to copy the campaign format.

The new campaign is aimed at reinforcing the positioning of Rin as "The detergent that provides the best whitening of clothes". By offering a staggering amount, it is conveying the confidence about the brand promise. It is courageous on the part of the brand to make such a move.

Another striking factor about the new campaign is the new brand ambassador for Rin. No its not Amitabh Bachchan . Rin has roped in Kajol as the new brand ambassador. HUL has really flexed its marketing muscle fully. Kajol gives the campaign some amount of authenticity and attraction to the viewers. I doubt whether such challenge campaigns evoke customer participation but it gives opportunity for marketers to advertise and organize events for brand promotion.

It is nice to see the HUL reviving its competitive spirit. HUL is a marketing machine which went into slumber in the last few years. This is a company that has the best marketing minds of India. Good to see these minds back in action.

Somebody wake up P&G....

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Saturday, November 30, 2013

Market Statistics : FMCG Market Shares

Today's ( 26/05/10) Economic Times carries interesting market share figurers of FMCG players across various categories in the Indian market. Thought of sharing.

Hindustan Unilever Ltd
April 2009( %) April 2010 ( %)
Soaps 47 43.8
Detergents 37.4 36.8
Shampoo 45.3 46.9
Toothpaste 27.9 25.7
Skincare 46.5 45.4
Tea 22.4 21

Proctor & Gamble
April 2009( %) April 2010 ( %)

Detergents 13.9 14.6
Shampoo 24.1 22.6

Godrej Consumer Products
April 2009( %) April 2010 ( %)
Soaps 9.8 10.5

Dabur
April 2009( %) April 2010 ( %)
Toothpaste 9.6 10.6
Shampoo 6.1 5.5
Chawanprash 59.6 60.9


Nestle
April 2009( %) April 2010 ( %)
Coffee 41.1 41.8
Chocolates 25.2 25.2
Noodles 63.1 62.2

Colgate
April 2009( %) April 2010 ( %)
Toothpaste 49.8 51.2
Toothpowder 43.6 43.5

Tata Tea
April 2009( %) April 2010 ( %)

Tea 21.7 20.2

Wednesday, November 6, 2013

Wella Kolestint : Deep, Longer Lasting Color



Brand : Kolestint
Company  : Wella ( P&G)

Brand Analysis Count : # 491

Competition is hotting up in the Rs 1200 hair color market in India. World's leading hair color brand Wella's Kolestint is upping the ante in the fast growing premium hair color segment in the Indian market. Wella is World's biggest cosmetic company based in Germany. Wella has a rich heritage dating back to 1880 and was  created by Franz Stroher. 
In 2003, the company was acquired by P&G.
Kolestant is the premium hair color brand from Wella. The brand was launched into the Indian consumer market in 2010. The brand is currently on a promotional overdrive with a series of campaigns across the media.

Indian hair color market has seen significant shift over these years. The segment was pioneered by Godrej Ltd with its hair dye products. From hair dye targeting the greying Indian consumer, the category has seen a remarkable shift in the last few years. Hair coloring has now become a part of  urban Indian consumer's personality. From a product used to mask ageing, hair color has become a part of fashion . While hair dye was predominantly used by the greying consumers, hair color has found tremendous acceptance across various age groups. Hair Colors infact has consumed the hair dye market atleast in the urban market.

This product category has found so much acceptance that ET puts the urban hair color market at Rs 600 crore growing at the rate of 25% per annum. This stupendous growth has got the attention of all major cosmetic brands to enter into this segment.
Kolestint is a premium hair color brand directly competing with the market leader Loreal. Hair color market is classified into three product categories - powder/cream/henna. Powder form is popular in the economy segment while premium segment prefers the cream product form. The top end brands target the SEC A segment of the Indian consumers.
The market leader Loreal is positioned on its brand equity and premiumness while the new entrant Kolestint is taking the benefit positioning. Kolestint's USP is that the hair color lasts much longer compared to competing brands. The brand had a consumer insight that most of the time, hair coloring goes unnoticed.Consumers complain that even after spending lot of money on hair coloring , the effect is not noticed and the coloring lasts only for a few days . Kolestint has used this insight to position the brand as a hair color that not only lasts longer but also will get you noticed. The brand has used this proposition very effectively using celebrity testimonials.The brand has used Noticability Attribute in its launch ad with John Abraham and Bipasha Basu.

The brand used popular television/bollywood celebrities like Shruti Seth , Ragini Khanna etc in the subsequent campaigns which talked about their own experience with the brand. In the follow up campaigns, the brand focused on Long Lasting Color benefit as the USP.
Watch the campaigns here : Shruti Seth
Here the brand is using the same strategy of Loreal to break into the market leader's position. Loreal have also used celebrity testimonial ads to boost its image.  Kolestint was wise enough to not to chose high profile celebrities for the testimonial ads because most of the time consumers discount those testimonial ads. The choice of popular cine/television artists like Shruti Seth gave more authenticity to the testimonial ads compared to high profile celebrities. 
In the hair color market, longer lasting colors and noticability are two major attributes that consumers look for. Kolestint has made a major marketing gain by focusing on those two important attributes. The brand has followed up its brand campaigns with a below-the-line activity of running a Switch Event across the markets. Consumers are asked to bring their unused non-Kolestint hair color packet and exchange it with Kolestint hair color. Since hair color products are experiential in nature, getting consumers to try the brand is very essential. These switch events aims at encouraging the users of competing brands to switch to Kolestint.

The premium hair color market is going to witness huge competition in the coming months. The market leader Loreal is not going to wait in the sidelines and will rather fight Kolestint directly . It will be a category worth watching.

Monday, October 14, 2013

Brand Update : Thru a horrible campaign,Old Spice asks you to be Mantastic

In my marketing communications class, I used to show the globally famous " The man, your man could smell like" campaign featuring the Old Spice man Isaiah Mustafa ( watch here) as an example of a highly successful marketing campaign in 2010. Three years after, in 2013, P&G started showing that advertisement in the Indian market. The disconnect had started.

To my surprise, the brand owner decided to adapt the globally successful campaign to Indian market with Milind Soman taking the place of Isaiah Mustafa. And the outcome was hopeless.

Watch the ad here : Old Spice India ad 1
                               Old Spice India ad 2

I would say that Old Spice has done a horrible job in adapting a global campaign. I am not sure what the agency had in mind when they conceived this campaign ? While the original global ad had a strategy behind it, the Indian brand failed miserably in making any sense and  succeeded killing the brand's whatever image that is left in the Indian consumer's mind. 

There is total confusion in what the brand is aiming to convey and to whom ? While the Old Spice man from original campaign talked to the ladies with his famous " Hello Ladies " opening, the Old Spice Indian man doesn't know what he is talking about and to whom ?  And sadly at the end of it, the brand talks about " attraction " thus falling into the  same language that other brands are talking about. 

When a brand adapts a globally successful campaign, its inevitable that people will compare and its brand and agencies duty to do justice to the original creative. Here in my opinion, the brand fell flat in the adaptation. The ads are neither attractive nor share-able and is desperately trying to be funny which is sad. The new tagline Smell Mantastic is as horrible as the campaign itself. 

 The new campaign had virtually killed the earlier brand image of Old Spice. But instead of creating a new image, this adaptation had put a confused picture of the brand interms of the image. While the 2010 global campaign put Old Spice in a leading position in western market because the ad theme and message connected with the consumer. But thats not the case here. The adapted campaign neither connects nor conveys any message or makes sense. Hope in the subsequent ads, the creatives will do justice to the brand.

What a horrible waste of a good brand !