Wednesday, November 05, 2008
Of Legacy Brands and Trends in Retail
By Harish Bijoor
Q: How do you distinguish a legacy brand? And how is a legacy brand built?
-Rohit Mangueshi, Mumbai
A: Rohit, Legacy brands need to essentially be mass brands. Brands that are accessible to the largest numbers of people. To that extent, in the pyramid
of brands, legacy brands are brands that fall in the middle and lower end of the pyramid rather than the top end. Therefore a Hugo Boss will not be a legacy brand. Instead, it is the MTR pickle and the Liv 52 from Himalaya and the Woodward’s Gripe water that will qualify better for the status.
The Legacy brand is one that stands the test of time, generations of use, generations of utility, and a rather intrinsic relationship with consumers, never mind their age. A Cadbury Dairy Milk would figure in this list as well...on this count.
To stand the test of time, a brand needs to maintain an impeccable line of quality. The brand needs to have had no major incidents of any kind that could plant a scar on its image, must be reasonably ubiquitous in its utility, must be solution oriented and not image-oriented alone (a biscuit versus Swarovski crystals), must be a basic item and not a fad that comes and goes (like a Covo chocolate spread or the Tazo), must be wholesome in its goodness appeal, and preferably taste-driven. This taste could be real taste as that of the tongue, or otherwise.
The marketer plays a distinct role in building a legacy brand. But bulk of it is done by the consumer. The marketer plays his role ensuring consistency of product appeal, and a consistent "wellness of the consumer" in mind forever. All strategies need to be geared in building such brands on a complete "Eastern
format" as I call it.
The "Eastern format" is the brand building format that asks "What can I give
the consumer" forever. The Western format is contra in the sense that it asks "What can I get back from the consumer...and how fast"!
The advertising and brand manager alike have a joint responsibility to ensure that consistency and reliability are used as cornerstones of both product and advertising delivery.
Q: If you were to isolate trends to watch out for in the retail market in the years ahead, what would they be?
-Pankaja Desikan, Chennai
A: Pankaja, this reply comes easily, as I have been evangelizing the same around quite a bit.
Here goes my list of ten trends to look out for in the retail market evolution head.
1.Small becomes more relevant
2.The small-retailer will organize himself into retail associations
3.Purchase cartels will emerge in India
4.Price under-cutting will remain the norm
5.Retailers will incur losses to earn customer walk-ins and franchise
6.Loyalty programs of retail outlets will get commoditized and fail to
7.Location-loyalty will reign in grocery, fruit and vegetable retail
8.Retailers will morph into the eye-balls business of Point of purchase
9.Point of purchase will become the point of advertising, the point of
marketing, the point of research...in short the point of everything
10.Manufacturers’ brands will lose their sheen over a period of time. Retail
brands will rule.
Q: What’s left of brand Kelvinator? Do you see anything there? I used to work for this brand in the old days.
-K R Seshaiah, Hyderabad
A: Shesiah-‘gaaru’, I agree. Kelvinator was a big brand once upon a time. I do believe that the brand is still alive and kicking in many a consumer mind. And surely enough, the brand is alive and kicking in many a kitchen with the ever-famous Kelvinator compressor just not willing to give up.
The Kelvinator penguin is an ubiquitous brand image. I do believe, backed by
adequate media spend pressure, the brand can be re-invoked in the mind of
the discerning Indian consumer rather quick. The Kelvinator compressor has brand equity
that is rock-solid.
Re-inventing the brand magic is a possibility.
Q: Can heritage brands re-position themselves and stretch their offerings to other categories that are new?
-John K, kochi
A: John, I am a purist in the realm of brand thinking. I do believe brands must not extend themselves too thin. A brand is like an elastic. You stretch it too thin, it breaks. It loses its depth. All it gains is width. And width does not necessarily build heritage. It is depth that builds heritage.
Therefore, I do believe heritage brands must not extend themselves with new
sub-brand avatars. They must stay consistent to what they are. These brands
need to withstand the pressures of their immediate bottom-line profit seeking CEO's and Finance Directors alike.
As a purist, I do believe these brands need to treat themselves as unique as
some of our heritage monuments themselves. If the Taj Mahal were to be
replicated in every Indian city, the Taj would lose some of its sheen for sure. Imagine a Charminar in Delhi.....or a Gol Gumbaz in Bangalore. Stretching heritage brands is equally ridiculous an attempt. Short term and
myopic. There is no scope for short-termism in the management of heritage
Harish Bijoor is a business strategy specialist and CEO, Harish Bijoor Consults Inc.
Tuesday, November 04, 2008
Of Cricket expenditure and Coffee
Is Cricket Expenditure Justified?
By Harish Bijoor
Q: Can a savvy marketer’s expenditures on cricket ever be justified. This baffles me. There is so much of spend and so little of physical return in terms of sale volume. I am totally distraught by this trend.
A: Dear distraught Datta, cricket expenditures are largely brand-building expenditures, unless the brand in question is a new launch altogether. For brands such as a Coke and a Pepsi, and possibly a Titan or a Tata tomorrow, cricket is all about building the brand imagery of the existing brand at large and typing up the thought-process of the game with the thought-process of the brand and its synergistic offering at large.
It works this way. If the brand is question is a Pepsi with its young and bubbly imagery, cricket is a great game. Think of cricket and think Pepsi. In reverse, think Pepsi and think cricket. This is the beneficial linkage that most brands expect to leverage with their mega sponsorship moneys.
When you convert this into sales numbers in terms of crates sold however, the linkage slips in its delivery. To that extent, if you did an ROI on such game-sponsorship gambles, the numbers don't necessarily stack up to a positive figure. Therefore, this expenditure is something you need to amortize as part of your long-term brand building process.
For a new brand launch however, things work differently. If a Yakult was to launch its offerings with a cricket season of sponsorships, things would work to its advantage in image terms. Fundamentally, the awareness scores that such a cricket association can create for an unknown brand is tremendous. The multiples in terms of image awareness and interest parameter terms would justify such expenditures for new brand launches.
This is the reason why most companies that sink moneys into such deep cricket sponsorships put together launches of variants of their drinks. Pepsi Blue was one such, and we know there are many such offerings up the sleeve for this season of discontent. Pepsi Gold is another. Never mind that the Indian cricket team is at his point of time no where near the gold!
Q: In recent times we see the active use of the word “pro” in our brand marketing statements on advertising. Wassup?
Andrew, "Pro' is a cute little pre-fix. All of three letters, short, crisp, and
completely positive. "Pro" is really all about being with you.
This pre-fix is therefore a potent brand semantic to use to advantage. It
is all being life-friendly. It is a semantic that fights the negative.
Pro-biotic would therefore mean something that actually fights many a
downside to the human body and its bio processes.
This is terminology that crept into the advanced brand markets of the West
and East alike in the early nineties. Since then, they have established a
potent position in consumer minds. Something every successive generation of
brands have reaped from over the years. It is now the time of the Indian
market and its brands to use and reap the "pro" word.
Pro is all about "professional" as well. Therefore in sport, you have the
use of "Pro-Am" championship, etc. Golf, Badminton and literally every other
sport uses it. This gives the word a positive cue as well.
Pro is used in advertising stances as well. Such as Pro-Life, Pro-diabetic,
I think this prefix is coming of age. The Indian market is two generations away form the American in terms of marketing usage. And one generation in marketing terms today is
all of 4 years. We are therefore around 8 years behind the
Take for instance the market for Vitamin-enriched waters. We are nearly 8
years away from where it started in the
revolution has not yet hit
Any prefix that has the positive terminological use will always help. Pro is all
about positivism and this lingo is bound to appeal to the Indian at large
who is getting very health conscious.
the life-style disease. On diabetes we are already there. Heart disease,
Hypertension, BP-negatives and Cholesterol related causes are not far way
in the great Indian marketplace, where our food habits are largely
As the awareness surges, consumers will start investing gin preventive
health-care more rather than only the curative. As this happens, the pro
word is going to gain in further significance.
I would bet my best marketing buck on the pro word for success. It is
certainly the next "Free" of the modern consumer world.
Gone then are the days of “Ultra” as in “Ultra-rich”. There will be no “ultra-rich” ice-creams in the future. Instead, it will all be about “Pro-life” ice-creams! “Super” is dead as a prefix as well. Words will come and words will go in the world of marketing.
Q: What is a value chain in marketing terms, and how long is it?
A: Paneer, the value-chain is a concept that is all about adding value to the basic offering of a commodity or a brand. The value-chain is a ladder you climb in terms of value-realization as you brand a commodity for instance.
Here is an example form a category close to my heart. Coffee. The value chain in coffee is simple but long. At the bottom rung of the chain is the green bean. We have been exporting this for long number of years. Value-add is the lowest here. A player involved in green bean export is essentially a player in the volatile international market for the commodity. International commodity price movements give us big hiccups or pangs of small joy. We are completely at the mercy of the commodity market price, which is often controlled by tangible factors, and at times by the intangibles, such as the fancy of International funds that may park money in coffee as a commodity. In that sense, coffee is a scrip that is traded on two bourses, the
Just above the green bean, in terms of better value is the specialty green bean. Here, beans are segregated and there is quasi-branding. People run behind these grades and are willing to pay a price.
Just above this is the roasted bean. This can go in packaged tin forms into consumer markets of the West and East alike. And above this is the Roast and Ground category, where coffee moves in powder form in functionally oriented packaging forms that keep freshness intact.
Higher still is the soluble coffee format. This is really instant coffee. Then just above this in value terms is liquid coffee. This can go to direct consumption businesses like small Café-chains, through vending machines, to homes in small dispensation bottles, and of course through company owned Cafes as well.
Harish Bijoor is a business strategy specialist and CEO, Harish Bijoor Consults Inc.