Wednesday, June 17, 2009

Vitamin ‘C’ means Vitamin ‘Cola’; right?


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The total size of the Indian beverages industry (including both carbonated & non-carbonated drinks) is Rs.7,500 crore. While a majority of it (80%) is dominated by the carbonated drinks segment, with fruit-based drinks being worth Rs.1,000 crore, the remaining Rs.1,500 crore is accounted for by the non-carbonated segment. Hence for drinks like PepsiCo India’s Nimbooz, Coca-Cola India’s Fanta Apple and Parle Agro’s LMN and Appy Fizz, there exists immense potential in the marketplace considering there aren’t many national players competing on this front. Elaborating on the potential this category holds, Alpana Titus, Executive Vice President-Flavours, PepsiCo India told 4Ps B&M, “The market for fruit beverages is too under-developed with not many players. If volumes go up, investment will automatically drive in the segment.” Interestingly, both Fanta Apple and Nimbooz have been launched under a strong parent brand – Fanta and 7UP respectively. Both these products (Fanta Apple and Nimbooz) have been pitted against Parle Agro’s Appy Fizz and LMN. Both LMN and Nimbooz are positioned as ready-to-drink, convenient and hygienic nimbu pani.

However, while Nimbooz is targeting the ‘on-the-go’ audience by thriving on the ‘Ekdum Asli Indian’ positioning; LMN is being promoted as a healthy drink for both youth and adults by highlighting the medicinal benefit of Vitamin-C in the drink. Commenting on the positioning of LMN, Nadia Chauhan, Joint Managing Director & Chief Marketing Officer, Parle Agro Pvt. Ltd told us, “Imagine LMN as a beverage that is found on business class of some of the most premier airlines of our country and the same beverage you find in the most rural markets of our country.” Both Fanta Apple and Appy Fizz are positioned as a youthful drink. Where on one hand, Fanta Apple compliments the bolder and expressive shades of the youth; Appy Fizz, on the other, is a drink for those fun-filled moments youth enjoys with friends.

But having a distinct positioning would not alone help these companies to capture a fair share of this price-sensitive market. Carbonated drinks have always lied in the low-involvement impulse buying category. Hence it is imperative that PepsiCo India, Parle Agro and Coca-Cola India get their pricing strategies right. The starting price point of Fanta Apple is Rs.8 and Rs.10 for 200ml and 300ml returnable glass bottles (RGB) respectively; Appy Fizz starts with Rs.18 for a 300ml stock keeping unit (SKU). Such pricing may prove to be a big blow to Appy Fizz, which although is a front-runner in the apple flavoured carbonated drinks segment, yet there isn’t much customer loyalty to the brand because the audience for the drink is niche and limited. Secondly, Fanta Apple carries the legacy of brand Coca-Cola India, which is the market leader. Fanta Apple also scores high with its 600ml PET bottle (Rs.22) as compared to Appy Fizz’s 500ml (Rs.25) and one litre (Rs.45) SKUs.

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Tuesday, June 02, 2009

Monojit Lahiri examines the face-off that continues to plague adville and attempts to play ‘referee’!


The Most Revolutionary Concept In Education PLANMAN CHE CENTRE FOR HIGHER EDUCATION, Supported by IIPM India’s Leading B-School

Whether advertising drives reality or reflects it remains a ball-breaker, hot-potato and one of life’s enduring and unsolved mysteries. Ad-bashers vociferously insist that the adfrat – like Bollywood – continue to get away with blue murder, invariably falling back on that old, moth-balled ghisa-pita line – “Why blame us? We are only reflecting the times…” – each time an ad of dangerously dubious nature screams into focus. The ad guys beg this lot to shake off their Rip Van Winkle robe, wake up and look around. In a globalised, youth-driven world, firmly in the embrace of new-age attitudes and aspirations, this brand of stone-age thinking, they believe, is both regressive and ridiculous.

Okay, so what gives? Is ethics in advertising really an obsolete word in the age of Britney Spears and Rakhi Sawant... or despite all the new-age blah-blah, do basic human values remain unchanged and a hit in that direction spells doom… or are both sides just over-reacting to this issue and in the process, missing out on the much-needed perspective, focus and main plot?

Eminent media commentator and author, Uma Vasudev fires the first salvo. The veteran writer believes that in these irreverent and youth-driven times “it is a fashionable thing – by shallow, self-proclaimed intellectuals and liberated spirits hysterically anxious to get their posturing right by sounding young – to trash anything that is solid, wholesome, traditional or conventional.” While she heartily agrees that some people tend to get too touchy and hyper to some ads [Sprite, MotoYuva, Axe, Virgin Mobile, Colgate], she suggests that some kind of moral policing must happen. “Remember, one man’s humour can be another’s tumour!”

Ex-Motorola and presently Tata Telecom’s Lloyd Mathias – whose (earlier) MotoYuva TVCs feature strongly in this debate – reacts in his usual, laid-back fashion. “See, advertising is about dramatising, blowing-up and exaggerating slice-of-life moments to make them interesting, appealing and engaging to the readers/viewers, while triggering the purchase intent. This has to be done keeping the sensibilities of the target group in mind. A total connect with them is a given.” Mathias points to the ad where the father raves and rants at his son’s shabby room and sloppy everything, while the kid, with earplugs, rhythmically nods to the song he hears on his audio. “It’s a hugely today’s situation and totally identifiable by most parents of teenagers and also the kids themselves. The ad emerged from human insight and was a light-hearted social commentary on the parent-child scenario of the day. It is not and was never meant to promote parental defiance or disrespect. It’s a tongue-in-cheek take on everyday, real-life face-offs between baap-beta!” Same is the case with all the cheeky MotoYuva ads blitzing the ad space, he insists.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
Detail of all IIPM branches
1500-plus IIPM students placed across the country with 44 bagging international offers

IIPM set to beat economic slowdown
IIPM Admission Detail
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON

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