Showing posts with label Hindustan Unilever. Show all posts
Showing posts with label Hindustan Unilever. Show all posts

Monday, September 16, 2013

Business Standard - Ujala's new avatar to battle segment blues

In July this year, Jyothy Laboratories relaunched its 30 year old brand, Ujala.

Despite being a market leader in the fabric whitening space, it was looking for a re-fresh with a new tagline and new packaging.

In the face of stiff competition from HUL's Rin Fabric Whitener and Reckitt Benckiser's Robin Blue, how does Ujala measure up?

 I provided my opinion on their new tagline and their new packaging in this Business Standard article - Ujala's new avatar to battle segment blues. Do read through and share your opinion in the comments section below.

Thursday, August 12, 2010

Which shampoo has won the mystery stakes?

What's in it for the consumer really? Now, that's the real mystery!

Hindustan Unilever and Procter & Gamble are at it again. They remind me of the protagonists in that infamous test series that India played with Australia Down Under. They seem to be as feisty as Harbhajan Singh or as sullen and morose as Andrew Symonds was a few years ago, as they kept going at each other and the media often got into the contest to complicate things and muddy the waters even more. This seems to be happening all too often with these two companies as well. Some time ago Rin and Tide Naturals had fought the detergent war with a comparative commercial and even went to court on which cleaned whiter. I often wonder what happens to people in these two companies when they get promoted. How does their job description change? Well, my guess is from washing clothes, they graduate to washing hair! That is precisely what has happened as now it is the shampoo brands that are scrapping. Let's take a look at the latest provocation.

The mystery unfolds

It all started with a teaser campaign with the line ‘A Mystery Shampoo. 80% women say is better than anything else'. It was a high-profile multimedia effort using hoardings, TV and today's darling - the social network. Actors Katrina Kaif, Neha Dhupia and Shilpa Shetty were crowing on social network sites about how good the shampoo is, and posted their transformed looks on various sites, and how happy they were to sign on this brand as endorsers, and how soon the mystery would be out.

I am sure the client and the agency must have preened and patted themselves on the back for these “honest testimonials' from these celebrities. After all, we know how truthful actors are about everything including age and relationships! The competition (read HUL) did not seem unduly impressed or fazed. Of course, a basic research on Google (where would we be without it) would reveal that a similar mystery campaign was launched in 2008 in the US for Pantene and also the competitive action and strategies. In any case what happened was swift, dramatic and unfortunate for P&G. Before the big reveal of the Pantene announcement, presumably slated for August 1, HUL took over hoardings, newspapers and TV with its messaging: “There's no mystery Dove is the no.1 shampoo”.

The thunder of the mystery seems to have been stolen and there was no mystery as to on whose face the egg was. After all, shampoo and eggs do have an affinity and a connect!

The trouble with competition

One of the sad realities of business is that there are always competitors. The days of HMT are sadly gone and seem destined never to return as today, competition presents itself from the unlikeliest of nooks and corners and continues to perplex. One of the earliest manifestations of action like this that tickled watchers of advertising was the conflict between Hertz and Avis, the car rental companies in the US. Hertz being the market leader by far was bursting at the seams with customers (lucky them) and often could not even afford to clean the cars before handing it over to a waiting, often irate customer. Avis, the No.2 company that had made a virtue of being No.2 (with its campaign “because we try harder”), wished to capitalise on this and ran a campaign that said “our ash-trays are cleaner”.

It did seem a marketing coup of sorts till Hertz got into the act by asking, “What would you say in your advertising if you had half the number of cars, half the number of people to handle them and half the locations? Right, your ash-trays are cleaner! And then they had an endearing question at the end of the ad asking “Who's perfect?”

Certainly no one is perfect, not the no. 1 car rental company then, and certainly not half the competitors in business whether it was in the past, today in the present, or tomorrow in the future. Remember Pepsi's campaign during the 1996 cricket World Cup in India? After losing the sponsorship bid in India to Coke its arch rival, Pepsi used celebrities such as Sachin Tendulkar, Dominic Cork, Courtney Walsh and the umpire Dicky Bird in saying ‘Nothing official about it' and in the process making the sponsor sound officious, stuffy and old in the bargain. Of course, it is hardly relevant that it was the sponsor for the 1999 cricket World Cup in England. And despite my memory being a bit dodgy, I certainly do remember what happened in my early days in advertising in the computer category. Zenith Computers (or so I think) ran a campaign listing its features in a full page ad, leaving half a page ad free for any of the competitors who could match them. It was asking for trouble as HCL (again writing from memory), as aggressive a company as one is likely to find, came up with an ad and features that were far superior, or so it claimed. In any case I had certainly no way of discriminating between bits and bytes then and certainly not even now but certainly there was no doubt as to which of the two ads had the sharper bite.

A frame of reference

It does make sense for smaller players to have a frame of reference. Even if your office is a hole in the wall, it might help to say you are “opposite the Empire State Building”. And the same strategy has worked for smaller brands such as Apple and Pepsi that have eyeballed their larger, more influential and better established rivals, and taken them on without fear of the consequences and actually benefited. Apple with its “Welcome IBM” ad when the giant had entered the personal computing space had given the impression that here was a leader welcoming healthy competition for the benefit of the human race! Hardly! Pepsi has taken potshots at Coke regularly whether it is the MC Hammer ad or the now redone ad of Coke and Pepsi salesmen. So there is no denying the fact that having a competitive frame of reference and comparing themselves to larger, well-established players can help smaller brands if helped by smart execution and nimble on-the-ground action. But does it help all brands, across categories and where customers are not necessarily young and on the ball?

Learning from the mystery

So what happened in the case of the mystery shampoo? HUL and its agency can certainly pat themselves on the back for capitalising on some obvious Zenith-like gaps that P&G had provided for them, by having too long a gestation period for the teaser campaign and replicating something that they had done globally. I think multinational companies need to rethink their strategies of replicating and borrowing from other markets in today's Internet age. Despite all this talk about social media, I often wonder if we are missing an important point. Social media is all about engaging the customer in dialogue. What is the great opportunity for engagement in paid celebrities saying they have tested the product and find it good? They better find it good. It is like Shah Rukh Khan saying it is safe for him to drink Pepsi when he is the brand ambassador. Well, if they paid me several crores, I might even drink castor oil and quickly wash it down with whisky off camera!

What about the consumer?

When Symonds and Harbhajan behaved in their self-indulgent, insensitive way, they spared little thought for lovers of the game the world over, and, of course, we had a largely biased and interested media on both sides adding fuel to the fire. This perhaps is not as bizarre, but I think often companies miss the point. Building market share and loyalty with the customer is not only about taking potshots at the competition, scoring brownie points and getting reams of editorial in social media sites. It is about something much more lasting. It might make sense where the audience is young and discerning like Apple's customers and fan club may be. But do shampoo users care a fig? Of course, given the abundance of my hair I am not the target customer, but it would make sense for these companies that spend so much time having a go at each other, in testing whether all this really makes an impact on the market place. Do customers really care which the mystery shampoo is? This campaign reminds me of a lot of advertising that is aimed for the benefit of the creative director in the other agency, for him to notice and compliment in the pub when the rivals do bump into each other. But does it do anything for the consumer? A mystery, if you ask me!

(Ramanujam Sridhar is CEO, brand-comm. He blogs at www.ramanujamsridhar.blogspot.com.)

Thursday, March 25, 2010

Who's the whitest of them all?

The marketing wars in consumer products are fought hard and bitter and the crown sits uneasy on the winner's head. Comparative advertising can be used to great effect

The detergents business is a dirty business, if you will forgive the pun. The contestants fight bitter and often unsavoury battles to garner a few percentage points of market share and once in a while, advertising is the means to secure the sordid end. Hindustan Unilever (HUL) has been the leader in the detergents market for as long as I can remember but its position has been challenged by a number of regional brands that have been eagerly snapping at its heels over the years, and recently big global players such as Procter & Gamble (P&G) too have joined the fray.

The last named, a global major that knows a thing or two about marketing warfare and strategy, is still a late entrant into the country. It would be reasonable to say that the company has come to terms with India and its consumers and has made slow but steady progress in recent times. P&G recently introduced a low-cost detergent, Tide Naturals, claiming in its ads that it provided “whiteness with special fragrance”. The product was clearly positioned against HUL's leading brands Rin and Wheel. This claim was challenged and the Madras High Court passed an order directing P&G to modify the ad as the company was not able to substantiate the claim. The court has granted an injunction and directed P&G to respond within three weeks.

But that was just the trailer with the main movie hitting the small screen over the weekend when the courts were closed, with a new Rin commercial (shown time after time in programme after programme) featuring two mothers with shopping baskets, waiting for their respective children to return from school. One of the ladies has Rin in her basket while the other has Tide Naturals. The Tide lady speaks smugly about the brand's fragrance combined with whiteness while the Rin lady, of the strong, silent type, waits for her son's shirt to do the walking and talking. The much-awaited bus eventually arrives (after all, it is only a 30-second commercial) and the Tide boy appears in a dull shirt (what else?) while the Rin boy breezes in, in a sparkling white shirt with a flabbergasted ‘Tide Auntie' staring in wonder. Of course, the well-behaved Rin boy cannot resist taking a potshot and innocently asks “ Aunty chaunk kyun gayi?”, a reference to Tide's advertising line thereby certainly providing enormous mirth to HUL's sales force at least, for it is still debatable whether this particular campaign will make them laugh all the way to the bank.

As commercials go it certainly didn't make me stand up and cheer, but to put it mildly, all hell broke loose as the media got into it. Dark threats were uttered secretly, if not publicly; legal action, complaints to ASCI were poured out … In fact “it was all happening” and people like me wondered what the lather was all about. While it seems obvious that the marketing bigwigs at P&G are getting hot under the collar, now that Holi has come and gone, let us objectively look at the situation and see what it means for advertising, the consumer and the companies in question.

The Leader Wears an Uneasy Crown

Hindustan Lever, as that's how people of my age would refer to the company, has ruled the roost in detergents, toilet soaps and shampoos for as long as I can remember. It also used to be the widow's stock, the safe option that you could bequeath to your family (people need to bathe and wash their clothes) and a ‘day-one' company on campus at IIMs. It continues to be one of the largest advertisers and one of the best marketing companies in the country. But things have changed and sadly, for the worse. I remember my boss in Mudra, A.G. Krishnamurthy, saying, “The moment you sign on a new business it is under threat.” If that is the case with advertising agencies, imagine the plight of market leaders! Not only national brands such as Nirma, but a host of other regional brands are snapping at HUL's heels, some with enormous success. The emergence of cable and satellite television has meant that a number of brands such as Power, Discount and Arasan from Tamil Nadu are giving the detergent major sleepless nights.

The fickle management graduates of today see dollar signs and their eyes seem to light up only when they see investment bankers and consulting firms (who are day-zero companies today) and are not enamoured of soaps and detergents as we were; of course, the less one speaks about HUL's performance at the stock market the better, as it brings up unpleasant memories, for me at least. Truth be told, companies such as Infosys have shown this company and the world a thing or two about stock appreciation and investor relations. To put it in a nutshell, we have a beleaguered giant being pushed to the brink, fighting for share and attention. I daresay the campaign has to be viewed in this overall context.

Comparison not new

Comparative advertising has been used to great effect by challengers such as Pepsi and mavericks such as Apple. In India Thums Up (earlier) with ‘Don't be a bandar' and more recently, Sprite, have cheekily continued to make youngsters smile and cheerfully sip the soft drinks, even as they took pot-shots at the competition. In recent times Horlicks and Complan have gone for each other's jugulars. As a general rule, comparative advertising works when the audience is more discerning and aware of the products in question. There is research to suggest that it works better in the case of high-involvement products. People buying cars and motorcycles might be interested in feature-for-feature comparisons, as to which has the greater bhp and fuel economy and so on. But will it work for detergents? In India, brands have desisted from naming their competition but the legal position is changing with the times and now brands can claim superiority as long as they do not disparage their competitors. Does the Rin commercial disparage Tide Naturals? Let's leave that to the courts and focus on the brand's choice of strategic direction.

Earlier advertising in the Indian context, in startling contrast to advertising from the West, fought shy of actually naming its competition. Pepsi would say ‘We replaced his Pepsi with a cola' in India, while they would say ‘We replaced his Pepsi with Coke' (in the MC Hammer commercial). Complan would say that they were better than brand “H” and even mentally-challenged consumers would recognise the blinding flash of the obvious and say, “Oh, are they talking about Horlicks?” Today it is okay to name the competition and often that can open up a can of worms. It is interesting to note that research suggests that when you claim that brand X is better than brand Y, consumers actually end up being confused as to which is actually better and end up buying brand Z. Often, we forget that consumers are not waiting with bated breath for our commercial and do not hang on to our every word the way we would like them to.

Questions remain

HUL might be patting itself on the back for hitting out at Tide which is a smaller player, but is the commercial really something to write home about? Is comparative advertising the way to go? How credible are these independent laboratory tests on which the commercial is based? How different is the theme of this commercial from detergent advertising of two decades ago? In the mid-Eighties Surf Excel ran a commercial with Lalithaji, where envious ladies tell the camera that she is showing off with new clothes on Sport's Day while the truth is that she has washed her clothes with Surf. (God, it must be tough to write detergent scripts!) Does the commercial disparage its competition?

While the timing of the release of the ad seems to have been planned to precision (over a weekend when the courts were closed), does the execution have the same meticulous attention to detail? Surely, surely, there has to be a better way of showing that your product is superior. I always believe that strategy sounds awesome on paper but customers don't get to see the strategy document, all they get to see is a 30-second commercial.

Having said all that, what is my personal view? Give me a “ Daag acche hain” any day!

Ramanujam Sridhar is CEO, brand-comm, and the author of Googly - Branding on Indian Turf.)