A 360 Degree Study of Brand Highs and Lows

Ahem…well…what

is a Brand?.

A Brand is an

I.D.E.A

A Brand can INTRIGUE!

Brand Value: USD 12 Billion Brand Value: USD 100 Billion

A Brand can DISAPPOINT!

A Brand can EXCITE!

A Brand can AROUSE!

Do Brands Die?

Or - are They KILLED?

Let’s look at some cases and learn…!

Greatest Brand Revival in the past Decade?

#1

Brand History!

• 70s superstar• Titled ‘Angry Young Man’• String of hits in Zanjeer, Sholay, Yashraj

films; most bankable Bollywood hero • Nominated for several Filmfare Awards

Downfall Period

• Early 80s• Joins politics and wins Ahemadabad

seat• Dragged into Bofors case• Manages to vindicate but quits politics

forever realizing that it is not his forte • Sweet-turned-sour friendship with

Rajiv Gandhi

Revival Efforts - I

• Early 90s with a few movies such as Hum and Shehanshah• Fails to make Box Officeimpact

Revival Efforts - II

• Forms ABCL as a premium Bollywood product and service company with the aim of

achieving USD 250 M Turnover by 2000

• Produces a string of flops

• Financial and operation collapse in 1997 after losing USD 2 million in organizing Miss World Bangalore

• ABCL Shuts Down

Another Filmi Effort!

• Does Movies such as Bade Miyan Chote Miyan, Sooryavansahm, Lal Badshah, Hindustan Ki Kasam in Late 90s

• All box office failures

Failed Businessman & Actor

The Resurgence

• Immediate Hit with Public• Revives ABs iconic status• Charms the Indian audience• KBC is MEGA SUCCESS

Why KBC Worked For Brand AB?

• Connected with the masses at the grassroot level

• Giving us an hour of his every day• Becoming accessible; a part of the

commoner’s life • Displaying humility; showed respect• Great platform; going beyond TVC, films,

print and radio adverts Becoming tangible

The After effects

• Triggered a successful period in Bollywood with a slew of successful films

• Endorsement Deals • Brand Ambassador for IIFA• One of the highest paid actors in

Bollywood• Regular roles with top production houses• Revived his ‘superstar status’

The Legend Lives on…

Big Boss 3 – Rs. 2.25 Cr/Episode

# 2

Can a 115-yeard old indigenous brand be revived?

When it is a pain relief balm in the age of quick-relief capsules???

…Because Traditional Pain Relievers sell…

Brand History• A patented balm for soothing headaches,

cold, and sprains, incepted in 1883

• Public Ltd in 1936

• Present in 12 countries

• The balm alone accounts for 80% of Amrutanjan’s revenues

Brand Boom Period

1970s – 1980sWith the advent of TVCs

Brand Went Bust

Late 80s – 90s

Why Amrutanjan Lost its Appeal?

• Lost its position as a one stop shop for aches to rivals Dabur and Zandu-hari-balm (both went big budget advertising)

• Predominantly ‘South Indian Brand’ - failed to capitalize on advertising and target pan-India consumers

• Confused Branding: Started Call Center and Software company by the same brand name

Brand Revival Strategy

• Creates a ‘Be Ready’ Campaign to position Amrutanjan beyond the balm – created by Mudra

• Renewed Packaging – A refreshing change from the old-fashioned visual.• Looking at tapping the European and American markets.• Allocated a budget of almost Rs 12 Crore for brand building and revamping

their product portfolio. (data source : Hindu Business Line, 2007)

• Ad spend has gone up 65% from last year for aggressive marketing. (The Financial Express Aug, 2009)

Will the Brand Revive?

Sell USPs

Get Contemporary

Go Pan India

Go Visually Appealing

Does AR Rahman Mean Sure Success?

#3

So thought Worldspace…

Why Worldspace did not get space?

• Lack of consumer insight : Indian consumer not ready for ‘Paid Radio’; entire set costs Rs. 2000/-

• Failed to adhere to the 4 Ps of Marketing - place, product, price and promotion

• Exorbitant pricing for receiver- detracts Indian Buyer

• Resurgence of FM Radio ate most of the Ad Spends

• TG: Upper end of the society

• Doesn’t work in car

Stats Speak

• Wall Street Journal: Worldspace is probably the most rancid stock

• Worldspace’s revenues in quarter to June 30 – USD 3.2 M

• Worldspace Expenses – USD 12 M• Worldspace Loss Over past 4

quarters – USD 155.7 M

Countering Losses

• Increasing the user base through invasive promotion including the tier 3 cities of India.

• Reducing the cost of subscription and the instrument

• Collaboration with media partners and tv channels along with big electronic houses

• Targeting the rural section by offering reduced subscription fees

One of the Word’s Largest Skin Care Company

Rs. 90 million spent in a quarter

30 years of presence in the Indian Market

# 4

Ranked 98th in World’s Top 100 Brands

Market Share: 16.9%

Brand?

Brand Overview

• 30 year presence in the Rs. 1300 Cr Indian skin care market

• Popularly positioned in India only as a skin cream

• Market share of 19% in the Rs 108 crore skin cream market.

Brand Revival…

• Failure occurred due to non-aggressive brand marketing

• Nivea India looking at allocating 50% of net sales for ad and marketing activities in 2009

• Ad spend budget raised to Rs. 250 Crore• Launching a new range of products

#5 Is Mercedes Breathing its last in India?

The Great German Race

Month/Year Mercedes BMW

2008 3625 2908

January 2009

79 270

Till June 2009

1606 2008

Sales Comparison

BMW… the Opportunists

Mercedes BMW

Misread the economy during recession ; hence lack of product

Recognized Mercedes’ lack in product portfolio; launched 5 and 6 series

Stuck in 2 important offerings E and M Class

Six product offerings in the same phase

Retains old world – typically positioned for CEOs and Industrialists

Youthful charm and fresher look

Agency take….

Factors that Affect Brand Success

Ecosystem

Product

Competition

Innovation

Positioning

Wow!…now I know…

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