Marketing of Nimbooz and LMN

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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

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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It’s called the Boomerang Karma and it doesn’t need stuporous intellect to fathom

The Most Revolutionary Concept In Education PLANMAN CHE CENTRE FOR HIGHER EDUCATION, Supported by IIPM India’s Leading B-School

Even the biggest listed retailer in the country, Pantaloons Retail Ltd, exited its JV with the Alpha Group Plc. to set up an airport retail venture (“We are completely out of this business now as it doesn’t fit our style of working,” said a company spokesperson). And if you’re thinking that the newly done up (and relocated) airports at Bangalore, Hyderabad, and even at Mumbai, are something to cheer about with respect to retailing, they stand simply nowhere when one compares a walk through the shopping stadiums (if one can use that usage) at Singapore’s international airport, or at Heathrow’s five terminals in London or in the Zurich or Geneva international airports in Switzerland, where most intelligently, to reach the boarding point, one has to first board a train from the shopping area (showing how expansive is the land dedicated to retailing). Anurag Mathur, Joint MD, Cushman & Wakefield deliberates, “Globally, airports derive a large portion of their income from non-aeronautical revenue. Heathrow, San Francisco, Vancouver and Brisbane, bring in as much as 50% of their revenues from retail and other non-aeronautical resources.” But currently, a passenger spends $3 on an average in an Indian airport, which stands too low as compared to the global average of $15.

However, despite the most discouraging response of private companies to airport retail tenders, market experts are still optimistic about the growth of the segment. Binit Somaia, Director, CAPA, comments, “The airport retail environment will improve significantly as the airport development projects move ahead. At non-metro airports, this trend is likely to progress more slowly and less dramatically, however we will nevertheless see changes in these locations as well.” Cushman & Wakefield estimated in a September 2008 study that India will have seven new airports by 2015, by when, even the 40 currently operating airports will need (and hopefully undergo) huge upgradation. And if that goes as per estimations, the non-aeronautical revenues will shoot up to a gargantuan 54% of gross airport receipts. But the segment will take much more time to match up to western levels of 70%.

There is no denying that airport and petrol pump (or gas station) retailing are still at a very nascent stage in the country. But keeping in mind the overall growth of the retail sector, one does wonder logically why private companies are playing doppelgangers when it comes to exploiting an available and purchase ready captive audience. Perhaps it will still take a lot of time for Indian retail companies to actually think beyond selling wafers and water bottles at airports and petrol outlets.

Perhaps a final port of call might convince private players. Forbes has rated Indian airports as being the most delayed ones in the world! Rather than looking at this negatively, imagine the possibility. A traveller who normally would’ve spend just a half hour looking around, now gets perchance beyond that! How much more ‘boomeranged’ karmic could that get?!

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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THAT FLYING PHOENIX

IIPM set to beat economic slowdown

Air fares are being slashed left, right and centre. Low-cost air travellers are again picking up where they left off. LCCs are back in vogue. ‘Small’ fares reign, for now...

“Indian Low Cost Carriers (LCCs) would soon cease to exist!” experts had declared just a few months ago. Such presumptuous predictions were in tune with the then turbulent aviation sector, reeling under the impact of higher ATF costs (which forms 40% of the operating costs for carriers) and galloping inflation that deterred low-cost travellers from flying and prompting them to choose the services of the Railways instead. A slump in consumer sentiment fuelled the de-growth cycle for LCCs.

But proving all doomsayers wrong, the tide has now reversed and no-frills airlines are rising from the ashes like the proverbial phoenix! Falling inflation, a steep fall in ATF prices–by approximately 55% since August 2008, improving infrastructure, et al are giving wings to the once-dying ambitions of players like Indigo, SpiceJet and GoAir, KingfisherRed and JetLite. Says Aditya Ghosh, CEO, Indigo Airlines, “At IndiGo it has been our commitment to provide them with best in class affordable air travel at all times.” Changing market dynamics are encouraging no-frills aviation players to go back to their earlier ambitious expansion mode. Many have restored flights to destinantions that had gone off their route map, others are even adding new routes, and still others like (JetLite and Kingfisher Red) even adding facilities to revive the previously-declining demand. “As oil prices decline, LCCs will once again be able to offer fares that will be low enough to stimulate market growth,” explains Binit Somaia, Regional Director, Centre for Asia Pacific Aviation.

What’s more, despite the ‘red’ splashed across their balance sheets, major player like SpiceJet, IndiGo and GoAir are planning a further 10% cut in their fares to lure more customers. “Lately, there has been a reduction in ATF prices and we want to pass that benefit to the passengers immediately in the form of this latest fare scheme,” says Ghosh. A decline in inflation levels is an added benefit for the LCCs as their target audience has enough in their pocket to come back to low fare air travel. “The recession has also given a setback, but things look positive. We promise a double-fold growth in the segment soon,” says an optimistic M. Madhavan Nambiar, Secretary, Civil Aviation. Further, as airport infrastructure improves, LCCs will also be able to improve their asset utilisation capabilities by reducing turnaround time and increasing efficiency.

But the most important demand stimulant for LCCs remains the Indian travellers facination for the skies. “Only 2% Indians fly in a year. The untapped potential therefore is huge,” adds Somaia. Moreover, in a price sensitive market such as India, with more first time flyers joining the market each year, there will always be a strong market for airlines that offer low fares. The winning 3E mantra forever remains: Exceptional Customer Service, Extreme Operational Efficiency and Effectual Price Discrimination. Who knows, what direction oil prices will take tommorrow, but for now, it’s ambition reloaded for LCCs...

Ratan Lal Bhagat

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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THAT’S HOW YOU DESCRIBE THE JOY OF THINKING ‘NANO’

NO OTHER EXAMPLE CAN JUSTIFY THE MIGHT OF BRAND TATA MOTORS THAN THE MAN HIMSELF. HE HAS BEEN THERE ALL ALONG AND STILL GOING STRONG

When pundits write paeans over how entrepreneurs must dream ‘big’; this man was contrarian. He dreamt ‘small’, shared his dreams with the nation and the year 2008 saw him make aggressive efforts to realise that ‘Nano’ dream. Yes! Ratan Tata’s pet project - Nano - installed the perfect halo over brand Tata Motors in 2008. Mamta Banerjee and the Singur controversy may have taken some of that sheen away, but the subsequent acquisition of European marquee brands Jaguar and Land Rover (JLR) brought the halo right back on the brand’s forehead. And while we could have given all credit to CEO Ravi Kant; yet it is undeniable that both Nano and the JLR initiative were personally handled by Ratan Tata himself, thereby making him our chosen brain that fuelled brand Tata Motors this year.

The Rs.1 lakh car, as it’s known, is expected to hit the market in 2009 and will undercut Maruti 800 in both pricing and practicality. Who could have thought that a truck maker would challenge the dominance of the small car maestro, Suzuki! With 62 years of truck making heritage, Tata Motors is today India’s largest and world’s seventh largest H&MCV manufacturer, holding over 65% market share. Considering that this is the company’s primary métier, Tatas are in a position to take the market pretty much anywhere they want. But this is where perception and rationale find themselves on a collision course! When the Indica compact did come in the year 1998, analysts were skeptical. They argued that a truck manufacturer will never be competent enough to fight it out in the excessively competitive small car market. Armed with modern technology and years of small car making experience, the competition was just not ruthless, it was smart! Ratan Tata was, however, convinced that his car was innovative enough to outsmart any established player irrespective of the latter’s brand. What Tata has is the unparalleled ‘brand equity’ of the group. “Tata has always been a major brand since it is present in almost all automotive segments. It started with the trucks, then entered SUVs and now cars,” says Auto Expert Murad Ali Baig.

Ratan Tata’s bag of tricks is overtly dependent on innovation and astute market reading. He knows that for an upwardly mobile customer (wanting a ‘sensible’ car), operational cost is a major influencing factor. Consumers are susceptible to oil prices volatility, which hugely impacts their buying decisions. Ratan Tata understood this and reinvented the small car marketing model, making Tata Motors an instant hit! Moreover, Tata has made the well-heeled competition rethink its strategy and with the launch of ‘new’ Indica in 2008, it has perhaps taken the game forward! And if the JLR acquisition is any thing to go by, Tata Motors has arrived on the global scene as well! But what indeed makes this automotive brand different is the legendary ‘Tata Group’ stamp and of course Ratan Tata himself, the smart old man who actually knows what really sells...

Karan Mehrishi

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM Admission Detail
IIPM Programme :- SUPERIOR COURSE CONTENTS
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
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Why Study Abroad When IIPM Gives You 3 global Advantages!