Big Bazaar is planning to position itself as a value retailer after being hived off as an independent company within the Future Group. While a new company has been floated under the name of Future Hypermarket, the retailer is now considering a new name to represent its discount format.
Speaking to Business Line, Mr Rajan Malhotra, Chief Executive Officer, Big Bazaar, said, “Although we have registered a new company under the name of Future Hypermarket, we intend changing its name. Big Bazaar is not a hypermarket and is more of a value-for-money format and that is what the new company would stand for.”
Currently, Big Bazaar contributes 64 per cent of the Future Group’s total turnover of Rs 7,000 crore. With its standalone status as a company, Big Bazaar is expecting to drive greater efficiencies in its back-end operations. As Mr Malhotra says, “There would be clarity for the concept as we become a separate company. There would be back-end efficiency in our operations.”
With amalgamation of formats under various heads ranging from Food Bazaar to Furniture Bazaar, Big Bazaar is looking at distinguishing itself as a ‘value’ retailer in its segment rather than being clubbed with the rest of the existing hypermarkets in the country.
Besides, it is looking forward to re-launching its private label, DJ & C, as a national brand by giving the brand rights to Future Brands (the group vertical handling brands in the group). Targeting the youth segment, DJ&C is today worth Rs 200 crore in Bazaar’s kitty. “We intend re-launching it as a national brand through other retail outlets by the end of this month. We believe Big Bazaar has moved into a mature phase and that is a compelling reason to launch our youth brand at a national level. The DJ&C brand has crossed a turnover of Rs 200 crore and now has enough pull to take it to its next level,” states Mr Malhotra.
New categories
Having forged long-term relationships with a host of FMCG players through MoUs, Big Bazaar is open to new categories being tested through its formats. “We are open to the highest selling brands such as Pears and Dove opening the new age categories at our stores,” says Mr Malhotra.
Meanwhile, Big Bazaar has roped in cricketer and India ODI captain Mahendra Singh Dhoni as the brand ambassador for its extensive collection of fashion apparel.
Wednesday, June 25, 2008
Monday, June 9, 2008
Seven elements of a timeless brand
A brand is like a human being — it has a personality, a lifespan, emotions and rationality. It is also like a building with intricate architecture.
A brand is an experience. A consolidated experience is the equity formed of the brand; this fosters a strong relationship between the consumer and the brand, which can last for a lifetime.
Brands determine what we eat, what we wear, what we drive, enjoy, and more than ever, how we lead our lives. Brands give us our hopes, our aspirations and our dreams. Therefore, brands ultimately become integral parts of our lives.
So, if the experience with the consumer is right over time, it tends to be part of his or her being. There are some brands which create that experience, fondness and relationship with the consumer. There are others that fall by the way.
We often confuse the leadership of a brand in the market with invincibility or long life. However, a market leader can also die a quick death. BPL, Fiat and Dalda are some cases in point. A brand that has been nurtured well, however, may or may not be a market leader, but it will continue to reign. And, more often than not, it will be one of the top five brands in its space.
What is pertinent is high brand recall among consumers. This recall also needs to have adequate emotional content for it to last.
So, how does one build a timeless brand?
Innovate: A brand that continues to reinforce positive experiences over time and surprises the consumer each time with new and consistent offerings will never die quickly. And innovation doesn’t mean just product innovation. Innovation involves the brand interface with the consumer, the brand experience, its look and feel, its physical availability and its pricing. Brand communication has to be equally innovative.
Brand expression: A brand must express the desired character and identity of a consumer. The brand and identity the consumer aspires for must go hand in hand. If they don’t, then the brand is not “my brand”.
Emotional connect: The brand must have an emotional bond with the consumer, along with a rational connect. Harmony between the two gives it strength, energy and passion. Understanding what gives the consumer emotional satisfaction is important. Brand behaviour has to be such that the consumer always feels secure and satiated.
Ownership: One has to ensure that the consumer is proud to own the brand. If he buys a branded shirt, he should be proud to wear it. If he removes the logo, then it shows that while he connects with the brand at a rational level, where he likes the quality, the brand does not appeal to him emotionally, which is why he doesn’t want to be seen wearing it with the logo.
There must be creation of ownership; the consumer should feel like he owns the brand.
Value delivery: Every brand has a value — the brand creator and brand operators know that. The consumer must get 100% of that value through the process of interface with the brand. That’s where the internal branding comes in. People within the organization must understand the value and nuances of the brand and be able to deliver 100% of it. So, if all the other aspects are strong, but the internal branding process within the company is weak, then you may lose the sting, or sharpness, of an everlasting brand. For, what you deliver falls short of what the brand actually was conceived to stand for.
Relevance: It has to be youthful, and by that I don’t mean that the brand has to be young in age. It has to continue to be relevant to consumers. The brand must understand consumer behaviour as it is relevant today and all its parameters, aspects, rational or emotional, must adjust to the times. If they don’t, the brand gets old and dies. You have to rejuvenate, and make sure the brand remains young...even for a hundred years.
Communication: What we call advertising, below the line and above the line, has to have an understanding of what the consumer wants the brand to be seen as. If there is a disconnect between what the brand wants to be seen as and what you’re delivering, the brand will lose equity. Many campaigns that win awards seriously lack this understanding from the consumer’s perspective.
Lastly, the brand must have humane elements to it. A brand is like a human being — it has a personality, a lifespan, it has emotions and rationality. It’s also like a building with intricate architecture.
A plethora of elements help add or reduce meaningful and economic longevity to a brand. Sometimes, of course, mercy killing becomes essential to help the new generation of brands to prosper. However, the patriarch brands will continue to deliver succour to the enterprise over a long period
A brand is an experience. A consolidated experience is the equity formed of the brand; this fosters a strong relationship between the consumer and the brand, which can last for a lifetime.
Brands determine what we eat, what we wear, what we drive, enjoy, and more than ever, how we lead our lives. Brands give us our hopes, our aspirations and our dreams. Therefore, brands ultimately become integral parts of our lives.
So, if the experience with the consumer is right over time, it tends to be part of his or her being. There are some brands which create that experience, fondness and relationship with the consumer. There are others that fall by the way.
We often confuse the leadership of a brand in the market with invincibility or long life. However, a market leader can also die a quick death. BPL, Fiat and Dalda are some cases in point. A brand that has been nurtured well, however, may or may not be a market leader, but it will continue to reign. And, more often than not, it will be one of the top five brands in its space.
What is pertinent is high brand recall among consumers. This recall also needs to have adequate emotional content for it to last.
So, how does one build a timeless brand?
Innovate: A brand that continues to reinforce positive experiences over time and surprises the consumer each time with new and consistent offerings will never die quickly. And innovation doesn’t mean just product innovation. Innovation involves the brand interface with the consumer, the brand experience, its look and feel, its physical availability and its pricing. Brand communication has to be equally innovative.
Brand expression: A brand must express the desired character and identity of a consumer. The brand and identity the consumer aspires for must go hand in hand. If they don’t, then the brand is not “my brand”.
Emotional connect: The brand must have an emotional bond with the consumer, along with a rational connect. Harmony between the two gives it strength, energy and passion. Understanding what gives the consumer emotional satisfaction is important. Brand behaviour has to be such that the consumer always feels secure and satiated.
Ownership: One has to ensure that the consumer is proud to own the brand. If he buys a branded shirt, he should be proud to wear it. If he removes the logo, then it shows that while he connects with the brand at a rational level, where he likes the quality, the brand does not appeal to him emotionally, which is why he doesn’t want to be seen wearing it with the logo.
There must be creation of ownership; the consumer should feel like he owns the brand.
Value delivery: Every brand has a value — the brand creator and brand operators know that. The consumer must get 100% of that value through the process of interface with the brand. That’s where the internal branding comes in. People within the organization must understand the value and nuances of the brand and be able to deliver 100% of it. So, if all the other aspects are strong, but the internal branding process within the company is weak, then you may lose the sting, or sharpness, of an everlasting brand. For, what you deliver falls short of what the brand actually was conceived to stand for.
Relevance: It has to be youthful, and by that I don’t mean that the brand has to be young in age. It has to continue to be relevant to consumers. The brand must understand consumer behaviour as it is relevant today and all its parameters, aspects, rational or emotional, must adjust to the times. If they don’t, the brand gets old and dies. You have to rejuvenate, and make sure the brand remains young...even for a hundred years.
Communication: What we call advertising, below the line and above the line, has to have an understanding of what the consumer wants the brand to be seen as. If there is a disconnect between what the brand wants to be seen as and what you’re delivering, the brand will lose equity. Many campaigns that win awards seriously lack this understanding from the consumer’s perspective.
Lastly, the brand must have humane elements to it. A brand is like a human being — it has a personality, a lifespan, it has emotions and rationality. It’s also like a building with intricate architecture.
A plethora of elements help add or reduce meaningful and economic longevity to a brand. Sometimes, of course, mercy killing becomes essential to help the new generation of brands to prosper. However, the patriarch brands will continue to deliver succour to the enterprise over a long period
Thursday, June 5, 2008
SELLING DREAMS: Realtors are increasing ad spend.
Brand-building bug bites mid-sized real estate developers
If advertising is all about selling dreams, little wonder that mid-sized real estate developers are roping in well-known advertising agencies to help them sell dream homes.
Consider this: Taneja Developers and Infrastructure has appointed Rediffusion DY&R to manage its advertising account and Omaxe is handled by Lowe India. Besides using the print and radio to promote their offerings, companies such as Parsvnath have broken into the big advertising league with a spate of television commercials that ensure high recall and visibility.
"The real estate sector has witnessed a tremendous growth and companies are striving to differentiate themselves and their offerings from competitors. There is a focus on building a strong brand identity, and leave an impression on prospective buyers," said Mr Pradeep Jain, Chairman of Parsvnath Developers, which recently slotted its advertisement to coincide with the live coverage of the Union Budget by various news channels.
The shift from standalone project based ads to a holistic corporate campaign is also being driven by the fact that developers are working on multiple projects to meet the accelerating demand. Parsvnath's advertising spend is expected to almost double this year from Rs 15-20 crore in the last year.
According to Mr Atul Phadnis, Chief Evangelist, Media e2e, real estate industry is estimated to spend about Rs 300-350 crore in 2006-07, a growth of 30-35 per cent.
One of the reasons for appointing large agencies is because companies are offering premium properties, he felt.
"The stakes are very high and therefore there is need to establish the premium value. Hence professional agencies are being appointed," he said.
Agrees, Mr Ajay Khanna, Executive Director of DLF Retail developers.
"The mid-sized firms are revisiting their traditional advertising strategy to take into account the upmarket positioning of products. Also in some cases, the intention to go public in future may drive the need for aggressive brand-building exercise," he said.
Moreover, property developers have realised that television complements both print and radio.
"What started off with simple property shows during non-prime time has resulted in increased enquiries and sale," said Mr Phadnis.
However, there are some who are treading the beaten path and prefer to attract buyers through local advertising. "Our campaign is still market focused and we are sticking to local advertising strategy for most of the projects, with exception to commercial projects which need to be advertised on a broader scale," said Mr Niranjan Hiranandani, Managing Director of Hiranandani Constructions Ltd.
If advertising is all about selling dreams, little wonder that mid-sized real estate developers are roping in well-known advertising agencies to help them sell dream homes.
Consider this: Taneja Developers and Infrastructure has appointed Rediffusion DY&R to manage its advertising account and Omaxe is handled by Lowe India. Besides using the print and radio to promote their offerings, companies such as Parsvnath have broken into the big advertising league with a spate of television commercials that ensure high recall and visibility.
"The real estate sector has witnessed a tremendous growth and companies are striving to differentiate themselves and their offerings from competitors. There is a focus on building a strong brand identity, and leave an impression on prospective buyers," said Mr Pradeep Jain, Chairman of Parsvnath Developers, which recently slotted its advertisement to coincide with the live coverage of the Union Budget by various news channels.
The shift from standalone project based ads to a holistic corporate campaign is also being driven by the fact that developers are working on multiple projects to meet the accelerating demand. Parsvnath's advertising spend is expected to almost double this year from Rs 15-20 crore in the last year.
According to Mr Atul Phadnis, Chief Evangelist, Media e2e, real estate industry is estimated to spend about Rs 300-350 crore in 2006-07, a growth of 30-35 per cent.
One of the reasons for appointing large agencies is because companies are offering premium properties, he felt.
"The stakes are very high and therefore there is need to establish the premium value. Hence professional agencies are being appointed," he said.
Agrees, Mr Ajay Khanna, Executive Director of DLF Retail developers.
"The mid-sized firms are revisiting their traditional advertising strategy to take into account the upmarket positioning of products. Also in some cases, the intention to go public in future may drive the need for aggressive brand-building exercise," he said.
Moreover, property developers have realised that television complements both print and radio.
"What started off with simple property shows during non-prime time has resulted in increased enquiries and sale," said Mr Phadnis.
However, there are some who are treading the beaten path and prefer to attract buyers through local advertising. "Our campaign is still market focused and we are sticking to local advertising strategy for most of the projects, with exception to commercial projects which need to be advertised on a broader scale," said Mr Niranjan Hiranandani, Managing Director of Hiranandani Constructions Ltd.
Wednesday, March 26, 2008
India is 3rd most brand conscious country
An improving economy and the rapid opening up of the Indian market has given rise to a group of affluent consumers who are more than eager to adopt the latest fashion trends. According to the latest Nielsen Global Luxury Brands Study, 35% Indians who participated in the survey agreed to buying designer brands. This is the third highest percentage globally with Greece leading the countries with 46%, followed by Hong Kong with 38%. Despite the prevalence of imitation designer-branded goods in some markets, surprisingly more than three-fourth of Indians surveyed do not think that imitation products match up to the real deal.
The top brands that Indian consumers spend on are Calvin Klein (34%), Gucci (25%), Diesel (24%), Christian Dior (16%), and DKNY (10%). India has also made it to the top ten markets globally for some of the brands. India ranks third highest globally for people who buy Gucci products. It ranks sixth for Calvin Klein, ninth for Diesel, and tenth for Fendi for buying these brands globally.
“People are travelling overseas more frequently now and quite likely their interactions with foreign brands have increased considerably. Moreover, foreign brands are synonymous to status and our survey finds that 57% of Indians surveyed buys designer brands as a status symbol. The number of outlets that these brands have opened up in the country in recent times is a testimony in itself of the increasing fashion consciousness amongst Indians,” said Vatsala Pant, associate director, client solutions, The Nielsen Company.
Though 73% Indians feel that designer brands are usually overpriced for what they are, 35% also believe that designer brands are of a significantly higher quality than standard brands. India stands eighth globally which thinks designer brands are quality products and invest in it despite of the price. About 45% Indians think that only fashion conscious people consider buying designer brands.
“There seems to be a huge market potential for luxury brand line extensions into every corner of the home and office and cross-over between brands and products is certainly an opportunity to drive the demand for these products,” added Pant.
The top brands that Indian consumers spend on are Calvin Klein (34%), Gucci (25%), Diesel (24%), Christian Dior (16%), and DKNY (10%). India has also made it to the top ten markets globally for some of the brands. India ranks third highest globally for people who buy Gucci products. It ranks sixth for Calvin Klein, ninth for Diesel, and tenth for Fendi for buying these brands globally.
“People are travelling overseas more frequently now and quite likely their interactions with foreign brands have increased considerably. Moreover, foreign brands are synonymous to status and our survey finds that 57% of Indians surveyed buys designer brands as a status symbol. The number of outlets that these brands have opened up in the country in recent times is a testimony in itself of the increasing fashion consciousness amongst Indians,” said Vatsala Pant, associate director, client solutions, The Nielsen Company.
Though 73% Indians feel that designer brands are usually overpriced for what they are, 35% also believe that designer brands are of a significantly higher quality than standard brands. India stands eighth globally which thinks designer brands are quality products and invest in it despite of the price. About 45% Indians think that only fashion conscious people consider buying designer brands.
“There seems to be a huge market potential for luxury brand line extensions into every corner of the home and office and cross-over between brands and products is certainly an opportunity to drive the demand for these products,” added Pant.
Wednesday, March 12, 2008
Launching new brands is getting increasingly difficult
V Ravi, managing director, Indica Research Consumer Insights, presents an expert’s view of the Business Standard Annual Brand Derby results
This year’s findings are starkly contrasting to the findings from previous studies in that corporate rebrandings have stolen the show – with three such rebrandings coming within the top 5 slots. This year’s findings are a testimonial to the emergence of strong attention to corporate rebranding by major corporates and their meticulousness in ensuring ‘great care’ to communicate the rechristened brand with an emotional connect.
We also believe that the findings are also a reflection of the difficulties in creating successful new brand launches (other than Bingo and Maruti SX4) by companies across sectors. This is clearly illustrated by the fact that less than a third of the consumers rated the launch of any new brands other than Bingo and Maruti SX4 as being ‘very successful launches.
The ranking of the various brands in terms of success might lead to an interpretation that the core success factor this year has been high decibel communication. However, quite a few brand launches with high decibel campaigns have not been seen a successful – indicating that high decibel communication does not have a direct correlation with ‘success’ or ‘lack of success’. It is perhaps the simplicity of the communication and the connect with the target audience that has been the differentiator between the winners and also rans.
The study has also thrown up several other additional findings: It seems to have become increasingly difficult for the FMCG sector to create successful new brands – with all new FMCG launches (including brand extensions) excluding Bingo being rated as substantially successful by less than a third of this audience.
Interestingly, despite the strong passion that Indians have for cricket as a game, the Star Cricket channel has been seen as only moderately successful – perhaps a reflection of the absence of major properties involving ‘Indian cricket team’ during the initial year of its launch (a reflection that the passion is largely restricted to India being a participant in the matches and not so much to the game per se).
The emergence of the online market is illustrated by the perceived relatively higher success of an online gaming portal like ‘Zapak’ as compared to brands like Minute Maid, Olay Total Effects or even a Mahindra Renault Logan.
The greater perceived success of i-pill compared to several high profile FMCG brands is testimonial to the a product addressing a strong need - much more than several other launches.
Reliance Fresh emerges as one of the more successful despite facing problems in terms of expansion of its presence across markets – a testimonial to the future of Indian retail?
If this year’s Brand Derby is a reflection of the trends for the future, there are several lessons to be learnt by marketers to create successful brands in an increasingly difficult market place
This year’s findings are starkly contrasting to the findings from previous studies in that corporate rebrandings have stolen the show – with three such rebrandings coming within the top 5 slots. This year’s findings are a testimonial to the emergence of strong attention to corporate rebranding by major corporates and their meticulousness in ensuring ‘great care’ to communicate the rechristened brand with an emotional connect.
We also believe that the findings are also a reflection of the difficulties in creating successful new brand launches (other than Bingo and Maruti SX4) by companies across sectors. This is clearly illustrated by the fact that less than a third of the consumers rated the launch of any new brands other than Bingo and Maruti SX4 as being ‘very successful launches.
The ranking of the various brands in terms of success might lead to an interpretation that the core success factor this year has been high decibel communication. However, quite a few brand launches with high decibel campaigns have not been seen a successful – indicating that high decibel communication does not have a direct correlation with ‘success’ or ‘lack of success’. It is perhaps the simplicity of the communication and the connect with the target audience that has been the differentiator between the winners and also rans.
The study has also thrown up several other additional findings: It seems to have become increasingly difficult for the FMCG sector to create successful new brands – with all new FMCG launches (including brand extensions) excluding Bingo being rated as substantially successful by less than a third of this audience.
Interestingly, despite the strong passion that Indians have for cricket as a game, the Star Cricket channel has been seen as only moderately successful – perhaps a reflection of the absence of major properties involving ‘Indian cricket team’ during the initial year of its launch (a reflection that the passion is largely restricted to India being a participant in the matches and not so much to the game per se).
The emergence of the online market is illustrated by the perceived relatively higher success of an online gaming portal like ‘Zapak’ as compared to brands like Minute Maid, Olay Total Effects or even a Mahindra Renault Logan.
The greater perceived success of i-pill compared to several high profile FMCG brands is testimonial to the a product addressing a strong need - much more than several other launches.
Reliance Fresh emerges as one of the more successful despite facing problems in terms of expansion of its presence across markets – a testimonial to the future of Indian retail?
If this year’s Brand Derby is a reflection of the trends for the future, there are several lessons to be learnt by marketers to create successful brands in an increasingly difficult market place
IBM to launch institute for business value
IBM will launch the IBM Indian Institute for Business Value (IBV) to address the growing demand for high-value services by clients in India.
According to a release issued by IBM today, IBV, IBM’s "business think tank", will create fact-based, industry and service area specific thought leadership materials that will enable clients to realise business value.
"Our India clients, and those keen to enter or expand into the Indian market, view the rapid expansion of the economy as an opportunity to grow their businesses. The challenge they will face is a clear understanding and insight into the industry segments in India. With the launch of IBV in India, IBM intends to provide local insights and better understanding that will enable clients to have a headstart," said K S Raghunandan, director - solutions, IBM India and South Asia.
The first IBV India study will be on "Healthcare India" focusing on required transformation of the Indian healthcare system to improve accessibility, affordability and sustainability, while delivering enhanced value to all key stakeholders. Additional studies from the retail and energy and utility industries will follow this year.
According to a release issued by IBM today, IBV, IBM’s "business think tank", will create fact-based, industry and service area specific thought leadership materials that will enable clients to realise business value.
"Our India clients, and those keen to enter or expand into the Indian market, view the rapid expansion of the economy as an opportunity to grow their businesses. The challenge they will face is a clear understanding and insight into the industry segments in India. With the launch of IBV in India, IBM intends to provide local insights and better understanding that will enable clients to have a headstart," said K S Raghunandan, director - solutions, IBM India and South Asia.
The first IBV India study will be on "Healthcare India" focusing on required transformation of the Indian healthcare system to improve accessibility, affordability and sustainability, while delivering enhanced value to all key stakeholders. Additional studies from the retail and energy and utility industries will follow this year.
Saturday, March 8, 2008
RC&M Delhi, Ogilvy Outreach bag rural marketing awards
RC&M Delhi picked up five trophies and Ogilvy Outreach four at the first ever Rural Marketing Case Studies Awards held at the Leela Kempinski on Wednesday. The awards were hosted by the Rural Marketing Agencies Association of India (RMAAI)."The overall objective (of RMAAI) is to protect and promote rural marketing," said its President, Mr R.V. Rajan.
Among RC&M's five trophies were three golds. The agency won gold for Best Innovative Marketing Initiative for its Toofan case study for Mahindra & Mahindra. The same campaign earned it a gold for Implementation of the Year. RC&M also won for Most Effective Use of Event Marketing for Grameeno Ke Beech.
Ogilvy Outreach won gold in the Most Effective Use of Sales and Promotion and Point of Purchase category for Samajdhar Wheelawati. The agency's remaining three awards were silvers.
Other winners were MART, which was given a Special Jury Award for its HPCL Rasoi Ghar case study in addition to the gold it earned for Best Long-term Rural Marketing Initiative, and ICICI, which won for its No White Spaces Strategy case study in the Best Integrated Rural Marketing Campaign category.
In all, RMAAI received 52 entries in seven categories from 13 agencies and five clients. However, no awards were issued for the Most Effective Use of Direct Marketing (print) category. The awards were judged by Mr Harish Bijoor, Ms Rama Bijapurkar and Mr Sunil Alagh.
"I am extremely happy with the response today," Mr Rajan said. "Our target was 125 (delegates attending). We have achieved it. The quality of response was excellent in terms of entries as well."
Among RC&M's five trophies were three golds. The agency won gold for Best Innovative Marketing Initiative for its Toofan case study for Mahindra & Mahindra. The same campaign earned it a gold for Implementation of the Year. RC&M also won for Most Effective Use of Event Marketing for Grameeno Ke Beech.
Ogilvy Outreach won gold in the Most Effective Use of Sales and Promotion and Point of Purchase category for Samajdhar Wheelawati. The agency's remaining three awards were silvers.
Other winners were MART, which was given a Special Jury Award for its HPCL Rasoi Ghar case study in addition to the gold it earned for Best Long-term Rural Marketing Initiative, and ICICI, which won for its No White Spaces Strategy case study in the Best Integrated Rural Marketing Campaign category.
In all, RMAAI received 52 entries in seven categories from 13 agencies and five clients. However, no awards were issued for the Most Effective Use of Direct Marketing (print) category. The awards were judged by Mr Harish Bijoor, Ms Rama Bijapurkar and Mr Sunil Alagh.
"I am extremely happy with the response today," Mr Rajan said. "Our target was 125 (delegates attending). We have achieved it. The quality of response was excellent in terms of entries as well."
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