Third Umpire on Branding: November 2012

Wednesday, November 28, 2012

Cricket is still the big thing and Pepsi knows that

Nothing, it appears, can slow the economic behemoth that the BCCI has become. Not falling television ratings, not terminated IPL teams, not alleged financial irregularities or a sluggish general economic climate. PepsiCo’s bid of Rs 396.8 crore to be the title sponsor of the IPL through 2017 almost doubles the value of the original deal with real estate firm DLF and gives the IPL a blue chip title sponsor that already has a long association with cricket.

When DLF decided not to renew their association with the Twenty20 tournament because the deal no longer made economic sense to them, it suggested the BCCI would be hard pressed to find a replacement willing to pay the kind of money they expected. The deal with Pepsi, however, underlines how strong the IPL brand has become and how it continues to attract big ticket sponsors even as companies tighten their belts.

Sports to get kick from e-commerce

Sports products as a category has been witnessing significant growth as far as online retailing is concerned. This trend has triggered the entry of sportsmen and marketers in this space and launch online product offerings for the Indian consumer. The latest to leverage the potential of ecommerce is one of India’s biggest cricket equipment manufacturers, SG Cricket. The company recently tied up exclusively with Jabong.com to unveil the VS319 range of cricket bats. The collection is inspired by Virender Sehwag’s record breaking score of 319 runs, scored in a test match against South Africa in Chennai in 2008. The VS 319 currently has five variations, which operate within a price range of Rs. 3,199 to Rs. 7,799.

Other than Sehwag, who has been associated with The Dasher Series of bats since the past five years, SG Cricket also has on board, Rahul Dravid and Sunil Gavaskar associated with The Wall Series and The Legend Series of bats, respectively. The Dasher Series currently hosts eight bats, four of which are being retailed through jabong.com.

Going national: Can Mother Dairy ‘milk’ success in new markets?

Mother Dairy, which has been a central player in the branded milk segment in Delhi and NCR for over three decades now, is all set to expand its market base in the country. Thus, the company has gone aggressive in its communication and marketing strategy. For instance, it recently introduced its milk packs in contemporary packaging. The six variants of the milk brand, which were earlier differentiated on the basis of colour, are now available in a single colour but with varying designs to display brand uniformity across markets. This has been followed by a new campaign launched in early October.

Created by Ogilvy India, the campaign titled ‘Maa Jaisa Koin Nahi’ is a considerable shift from the existing corporate tagline of ‘Sehat ka Saathi’. Describing the tribute that the brand intends to pay to mothers, Amitava Mukherjee, Business Head, Milk Division, Mother Dairy Fruit and Vegetable, says, “We thought it was time for Mother Dairy to celebrate the biggest part of its name and pay a befitting tribute to the mothers of this country.”

This Business of Trust

Top 10 Most Trusted Brands

Most trusted brands of 2012

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Thursday, November 8, 2012

Footwear options: Liberty or Versace for Hrithik Roshan?

Daniel J Boorstin has rightly remarked that “A sign of a celebrity is that his name is often worth more than his services”. Marketers have acknowledged this fact and have roped in popular faces to create instant brand awareness, credibility and aspirational value. In a country like India that is celeb crazy, associating with a celebrity makes a substantial impact on the purchasing behaviour. But what if there is a mismatch between the celebrity and the brand, what happens if a celebrity endorses one brand but is spotted using the other?

Small films trump star films at the box office

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LG Home Appliances invests Rs. 50 crore during festive season

LG India is on an aggressive marketing spree with Rs. 50 crore chalked out as marketing budget for this festive season; and innovations across its home appliances portfolio. For differentiation, the focus of the brand is on offering longer warranty periods and clearly steering away from discount. The brand is also focusing on a fresh line of communication for potential product categories and a host of experiential marketing activities. Experts opine that it is in fact the right time for LG Home Appliances to gear up to the growing competition and extend offerings that can guarantee a safety on investments. Pitch digs further into the company’s marketing plans.

Mapping their journey from 1997, when LG Home Appliances was introduced in the Indian market, this arm of LG Electronics India (LGEIL), as per company estimates, today stands at the podium with 37.7 per cent, 38 per cent and 39.5 per cent market shares in the washing machine, refrigerator and microwave oven categories, respectively. Logging a sales turnover of Rs. 16,200 crore in 2011, LG Home Appliances has been contributing as much as 45 per cent to the total turnover of LG Electronics in India.

Tata Tea: A case of ‘social-cause’ marketing

From cartons to polypacks, heritage plantation to a branded beverage company, ‘Gaon Chalo’ to ‘Jaago Re’, Tata tea has come a long way since its inception in 1986 when the packaged tea market was dominated by one large player with over 70 per cent market share. Tata Tea claims to stand for a way of life for its consumers and has transformed the way beverages are marketed through its ‘Jaago Re’ campaigns. Striking a chord with the youth, the tea brand launched a series of campaigns over the last four years that wove in the theme of social issues.

Social stimulation
Tata Tea was launched with a communication on its product functionality of ‘garden fresh.’ From there it has moved to the current campaign since 2007, which is about bringing important social issues to the forefront of societal mindset. “The campaign has worked on two levels: by intertwining the themes of civic consciousness with that of the physical and psychological boost that a cup of tea delivers. The ‘Jaago Re’ campaign drives synergy by providing a common, unique umbrella message of ‘social awakening’ that brings its national brands together,” says Vikram Grover, Vice-President, Marketing, Tata Global Beverages. He adds that, ‘Jaago Re’ has not just reflected the nation’s mood, in many ways, it has been ahead of the curve and in fact shaped the nations mood. “Causes like corruption etc were taken up far before they became popular topics of discussion,” he says.

Sun TV and IPL: A bold step?

The Sun TV Network has won the bid for the Hyderabad franchise of IPL for the next five years, after the erstwhile owner Deccan Chronicle Holdings lost the rights recently. afaqs! explores what the deal brings to the table.

After a bitter battle which resulted in the termination of the Hyderabad franchise Deccan Chargers, owned by Deccan Chronicle Holding Ltd (DCHL), the franchise finally found a new owner, Sun TV Network, on October 25. The media company will have to pay Indian Premier League (IPL) Rs 85.05 crore per year for the next five years. Sun TV Network won the bid against PVP Ventures, which bid for Rs 69.03 crore per year.

Do "Black Sheep" subs affect parent brands?

What happens to the equity of brands when sub-brands fall on bad days.