Brand Updates- 11/10/2012

Cadbury India to be now known as Mondelez

In early 2010, Kraft Foods had acquired British candy maker Cadbury in a deal worth close to $19 billion. Then, on October 1, 2012, Kraft’s snacks business – which includes brands such as Cadbury, Tang and Trident – was spun off into Mondelez; the flagship company will be left with the grocery portfolio, which includes such brands as Philadelphia cream cheese and Maxwell House coffee.

What the Indian operation is trying to convey is that the overarching brand name may have changed but what haven’t the values and associations embedded in it.
Ref:http://articles.economictimes.indiatimes.com/2012-10-09/news/34343272_1_cadbury-india-mondelez-anand-kripalu

Unilever takes HUL strategies like small packs, cheaper variants to developed markets

During a 2009 India visit, Paul Polman, CEO of Anglo-Dutch consumer goods major Unilever, couldn’t conceal his delight with the Indian subsidiary’s strategy of offering brands with multiple price and packaging options, helping consumers trade down or up depending on the state of the economy.

“If we had that (such options) in the United States, there is no reason why we would be hit in a recession. We have seen that we tend to do well in markets that have a wide portfolio of brands in a category. So, we are trying to do the same in other markets,” Polman had said.

Ref:http://articles.economictimes.indiatimes.com/2012-09-28/news/34148327_1_unilever-spokesperson-d-e-markets-unilever-ceo

Hindustan Unilever project delivers on livelihoods, falls short on sustainability

 Hindustan Unilever wants to go from being an importer of tomatoes to becoming self-sufficient and, in time, meeting its parent’s entire global requirements.

A HUL contract-farming pilot, initiated in April and shown to the media last week, delivers on livelihoods but falls short on the environmental marker. This pilot, in the Nasik district of Maharashtra, works with the state department of agriculture to provide about 600 farmers subsidised agricultural equipment, instil good practices and assured offtake of their produce.

Ref:http://articles.economictimes.indiatimes.com/2012-09-28/news/34148331_1_agricultural-practices-hindustan-unilever-farmers

How P&G is changing its dried approach to advertising & building creative reputation

Over the last decade, the list of ‘creative friendly’ clients has changed radically. It used to be the near exclusive domain of Nike, Adidas, PlayStation and Sony with their seemingly unlimited budgets and fondness for the lunatic fringe of ideation.

But of late, marketers that win big in shows across the globe are workaday clients like Unilever and P&G. Through the 1990s and the early 2000s, it was fashionable to hold these up as examples of ‘research driven’ marketers who just didn’t ‘get’ creativity. Except over the last few years, the FMCG giants have proved they don’t just ‘get’ creativity, they also get sales……Click to read more

Ref:http://economictimes.indiatimes.com/features/brand-equity/how-pg-is-changing-its-dried-approach-to-advertising-building-creative-reputation/articleshow/16738862.cms

eBay starts daily deals for services, taking on Groupon

EBay Inc has quietly launched an online marketplace for deals on local services, taking on Groupon Inc and expanding into a potentially big category.

Called eBay Lifestyle Deals, the offers are being run in a limited number of urban areas, including the San Francisco Bay area, Los Angeles and Washington D.C.

The move is potentially a big step for eBay, which has traditionally focused on products rather than services.

EBay has teamed up with start-up Signpost, which arranges the deals with local merchants and posts them on a new section of eBay’s online marketplace, www.ebay.com/exp/lifestyle-deals.

Ref:http://economictimes.indiatimes.com/tech/internet/ebay-starts-daily-deals-for-services-taking-on-groupon/articleshow/16758201.cms

Brand Story: Fevicol

Few brands enjoy the status of being synonymous with the category of product they represent. Fevicol is one such brand. Sold in its signature blue and white packaging, this legacy brand is a generic name in the adhesive category in India, and is a familiar sight in most households.

The Fevicol story began in 1959, when the Parekh Group floated Pidilite Industries to capitalize on the potential market for synthetic resin adhesives, or “white glue” in India. The primary application of white glue was in woodworking, with secondary applications in upholstery, flooring, and footwear. This was at a time when unwieldy natural adhesives (which needed to be melted before use) were the norm in the wood furniture making industry. Being a synthetic resin adhesive, the product’s ease of application worked as a unique selling proposition for the brand.

Presently, the Indian furniture industry is highly fragmented with 85 percent of sales dominated by the unorganized sector. Roughly 65 percent of furniture production is in wood, and carpenters play a vital role in deciding which adhesive to use. Fevicol’s initial strategy was to help carpenters realize the importance of using quality products, since one does not save too much by using cheaper unbranded alternatives. The brand’s reputation for its consistent focus on quality was propagated through word of mouth publicity, and has led to the brand enjoying a high level of trust among its target audience.

Apart from product quality, maintaining close contact with its primary target audience, the carpenters, has helped Fevicol sustain its leadership position in the white glue market. In its early years most competitors—small-scale local manufacturers of white glue and multinational brands like Movicol (currently discontinued)—marketed their products through hardware stores and timber marts. Fevicol, on the other hand, approached carpenters directly. This direct marketing initiative was one of the most successful strategies employed by the company and helped the brand gain a strong foothold in the white glue market. The Fevicol Champion’s Club (FCC) was another initiative introduced by the company. It served as a platform for carpenters to increase their social contacts and be part of a social network. Organizing free dental checkups, blood donation camps, or celebrations during festivals like Independence Day played its part in making the bond stronger. This tactical move has helped the company build strong brand equity for Fevicol.

The company went a step further by sponsoring activities to build relations with the families of the carpenters. For example, the company regularly organizes vocational training for their spouses and children—educating them on everyday activities like opening bank accounts and sewing.

 

ADVERTISING:

Intelligent humor in advertising has helped keep the brand alive in this non-interesting category. Some of its award winning TV advertisements include showcasing an egg that won’t crack because the hen that laid it fed from a Fevicol tube (1988), to more Indian-specific ones like a creaky bus carrying an unimaginable number of passengers glued together because of a Fevicol signage ad (2001).  See both the ads below:

http://www.youtube.com/watch?v=lC5EhJl1wFE (Fevicol Egg)

http://www.youtube.com/watch?v=jTav-vdht0E (Fevicol bus)