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As for Nimbooz and LMN, both offer 200ml tetra packs for Rs.10. Nimbooz also offers a 200ml RGB for Rs.10. However, while Nimbooz may gain a competitive edge on its 350ml PET bottle (Rs.15) as compared with LMN’s 500ml PET bottle for Rs.23; LMN will gain on its 110ml tetra pack, which Parle Agro intends to sell for Rs.5. Says Parle Agro’s Chauhan, “The strategic price point is developed keeping in mind the distribution opportunity for the brand LMN. Considering we are fresh and natural lemon drink, our main competitor was the product at the stalls and the home made nimbu pani. At stalls, a glass of nimbu pani is sold for Rs.6. We’ve made it possible to have packaged and hygienic nimbu pani at Rs.5. Considering it has huge opportunity to penetrate into all kinds of markets, we wanted to have price points that spanned across a wide range, allowing anyone to be able to afford our beverage.” Titus of PepsiCo too is not wary of competition as she says, “Sooner or later competition will arrive. We welcome competition as it helps to stimulate the category.” As far as reach is concerned, all four viz. PepsiCo’s Nimbooz, Coca-Cola’s Fanta Apple and Parle Agro’s LMN and Appy Fizz have up to one million outlets each through which these drinks are sold to customers across India. To ensure the success of these drinks, the honchos of respective drinks have wasted a lot of chalk at the drawing board. For instance, Fanta Apple was first launched in Andhra Pradesh and Tamil Nadu in November 2008 before going for a nation-wide launch. Ask Venkatesh Kini, VP-Marketing, Coca-Cola India the strategy behind this move and pat comes the reply, “These states acted as testing grounds for our products. Hyderabad is a cosmopolitan city, which has a lot of affinity for Coca-Cola brand. In Tamil Nadu, the launch was aptly timed around Pongal so the response was good.” Titus avers, “An extensive consumer research was carried out to validate Nimbooz.” LMN, on the other hand was not test marketed but launched after an intensive study undertaken by Parle Agro’s in-house R&D team.
Another vital determinant deciding the success of the products is their advertising and communication strategies. Fanta Apple has roped in Genelia D’Souza (of Jaane tu ya jaana na fame) to endorse the product. A TVC conceptualised by Ajay Gehlaut of O&M hit the small screen soon after the product launch. “The commercial for Fanta Apple gives a fresh dimension and a different expression to the message. It highlights how subtly yet intelligently youth gives it back to those who irritate them,” says Gehlaut. Furthermore, Fanta Apple will also support an integrated 360-degree marketing campaign involving BTL, POS and POP marketing, digital advertising, et al. On the other hand, PepsiCo too has launched an intensive consumer activation campaign to promote Nimbooz. Besides releasing an ad-campaign (which highlights Nimbooz’s ‘Ekdum Asli Indian’ proposition) created by BBDO India, there is also a 360-degree marketing plan including multi-city launches, road shows, comprehensive 3D activation, OOH, radio and press. As part of its BTL initiative, a Nimbooz Highway Gaddi will visit the four major Indian highways to promote the product and educate consumers. Talking about LMN’s marketing plans, Chauhan says, “LMN’s launch is being supported by a 360-degree marketing campaign comprising of TVC, print advertising; point of purchase promotions and BTL activities. Creativeland Asia has designed the complete brand communication for LMN.” A closer view of the marketing initiatives reveal that most of the marketing plans of the drinks revolve around the same lines. Activities around POS and POP will definitely be vital to the success of the products. Says Chauhan, “Retail visibility is always of key importance and host of unconventional POS will support the brand in establishing itself in this space.”
Be that as it may, the war is on in full swing. If Fanta Apple has its pricing strategy right, Appy Fizz has a first mover’s advantage. If LMN is thriving on a strong brand positioning, then Nimbooz has the strong backing of PepsiCo’s legacy. Undoubtedly, Coca-Cola India and PepsiCo India score high by the virtue of the fact that they are legacy brands with a high brand recall and consumer loyalty. At this point, it becomes imperative for Parle Agro to pull up its socks as it is pitted against industry leaders. However, given the success of Parle Agro’s flagship brand, Frooti, it won’t be too difficult for it to catch up with PepsiCo and Coca-Cola India. Also given that the target audience for LMN is much diverse as compared to that of Nimbooz, you never know, LMN may soon zip past Nimbooz... It’s all a matter of who isn’t addicted to Vitamin-C (Vitamin-Cola?), right? Or is it?
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Source : IIPM Editorial, 2009
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