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"Sneha needs to build an element of modernity through
packaging and advertising creatives''
S. Srikant, Principal Consultant,
PwC India
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Suneet,
the young CEO of a family-owned business, is keen to change the
name of its popular candy, Sneha, to something with an international
ring to it. But what's in a name? Can a brandname by itself create
success? Or could it be so important that it pulls a product down?
Before we embark upon the journey to specifically
analyse the Sneha case, let us cast an eye over what history has
to show us in this regard. Heinz, the most famous ketchup brand
in the world, was named in 1869 after its founder Henry Heinz. John
Cadbury's chocolates, named after him in 1824, are eaten all over
the world. Closer home, one cannot deny the success of ethnic brand
names like Rasna, Godrej, and Nirma. The point is this: consumers
have a strange way of dealing with brandnames.
Going back to the basics, we need to understand
the business value of Safe Foods and the drivers of such business
value. We do know that the business is large (Rs 200 crore in turnover),
has been growing steadily and, therefore, must have something going
in its favour. While market research has shown some of the impending
concern areas, it has not captured the drivers behind the brand's
journey to reach the No. 3 position. Sneha's success in small towns
could come from a unique product, competitive pricing, and wide
distribution. This success also reveals that the name Sneha has
not only been accepted but is quite well-established. Given this,
it is evident that the problem of brand-recall that Sneha faces
in the metros can't be a recent one. It is equally evident that
all's well in smaller cities.
So what's the problem? Research reveals something
that should cause concern to the management of Safe Foods-Sneha
is losing brand awareness relative to its competitors within its
target group in the smaller towns. This is the problem that needs
to be addressed. The other problem, of being weak in the metro markets,
is a long-term one. Therefore, my prescription for Sneha would be
as follows:
- Brand awareness in smaller towns-through
greater marketing effort (advertising and promotions).
- Build an element of 'modernity' in its brand
identity-through packaging and advertising.
- Nurture all aspects of its business, which
have created value so far-for example, a unique candy, which competitors
have not been able to replicate and good relationship with trade
as evidenced by the interactions with Chibber.
- Focus on improving the profitability of
Sneha.
- Use contract manufacturing for Sneha; this
will release internal capacities for a new brand.
- Re-invest profits from Sneha to develop
a new product and build this into a new, modern brand to battle
the MNCs in the metro markets. This will help Safe Foods to leverage
the Sneha brand to build a new future for itself.
Suneet's idea of killing Sneha and relaunching
it with a new international name is fraught with risk. On the one
hand, this would call for a large investment in re-packaging, advertising,
trade communication and in writing-off obsolete inventory. On the
other hand, the business in the company's stronghold (smaller towns)
could be adversely affected because of consumer confusion. This
could turn out to be a double-whammy for Safe Foods-and Suneet could
well end up travelling in an auto-rickshaw instead of the Lexus
GS 430 of his dreams.
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"Safe Foods should
not dump Sneha; it should keep the brand positioning statement
intact''
Harish Bijoor, COO, Zip Telecom |
Suneet
Singh is young, impulsive, and brash. He does not understand brands.
Safe Foods is certainly not safe in his hands.
Let's understand the basics. A brand is a name.
An identity. A symbol. A distinction. A brand is an entity that
represents a character, a personality and a charisma as well. Re-invent
is a big word. Easily said, but difficult to implement in a marketplace
that is large, traditional and brand-besotted. Re-branding Sneha
is going to be a long-haul task if attempted. Let us not forget
that this is a Rs 200-crore brand that is growing at 10 per cent
per annum. Never mind that the growth rate of the brand is half
that of the category in which it operates. The brand is alive and
impacts consumer choice and preference even today.
Let me take a puritanical stance. This stance
does not take into consideration any of the soft issues of emotion
and superstition the geriatric Chairman of Safe Foods might want
us to consider. The stance is simple. A brand is a name. In addition,
it is a bundle of other sets of attributes and emotions that have
a tendency to build and consolidate over a period of time. Sneha
packs much of this even today. Don't change the name. Hold on to
it as a precious property.
As you hang onto this property, do everything
else there is to do to make the offering contemporary. Make those
changes in the packaging and in the advertising appeal of the brand.
But don't dump Sneha. Keep the brand positioning statement intact.
Keep tinkering with the advertising positioning statement all the
while in your bid to keep the brand appeal contemporary.
The brand is in trouble in some ways. There
has been a gradual erosion of appeal among the contemporary set.
There seems to be a large number of consumers who have outgrown
the appeal of the brand. This is a serious state to be in.
This brings us to the question: How does a
brand stay contemporary? A brand attempts this by doing all those
little things that keep it within the space of the lifestyle of
its current set of consumers. In a category such as confectionery
that depends on an ever-changing set of customers who grow in and
grow out of the category, brands need to ask the all-important question,
"Should a brand age with its customers or should it stay evergreen,
pitching itself at an age-profile that is static?"
The answer lies in the fact that a brand is
forever. While a customer walks into its franchise, walks out, and
eventually dies, a brand is forever. But a brand that ages with
its customers suffers the same fate as its loyal customers. It dies.
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''Safe Foods should use Sneha to its advantage and create
a swadeshi image''
R. Ravi, Head (Sales), Godrej
Appliances
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With
the entry of MNC brands, Indian brands continue to see consumers
shifting to foreign brands. Consumers prefer foreign products for
their fit, feel, and finish. The strength of Indian products, however,
lies in their quality.
Suneet wants to rename Sneha as he thinks the
name is outdated. A mere change of label to a trendy foreign name
will not up sales if the quality is not good. Hari Singh has mentioned
that "even today, no competitor has been able to make the kind
of candy that we do". If this is true, Safe Foods should leverage
it and try to reposition Sneha.
In fact, Safe Foods should use the only Indian-sounding
confectionery brand in the market to its advantage and create a
swadeshi feeling in the minds of the people. In the Chinese consumer
durables market, the top two companies in terms of volumes are Chinese,
although all major MNCs are present.
Nevertheless, Suneet's suggestion of better
advertising and slicker packaging should be implemented immediately
to help Sneha compete with the savvier multinational brands. The
ethnic name coupled with the new contemporary look can prove to
be a unique combination.
The finding of the survey is of serious concern
and Safe Foods should take up an aggressive advertising campaign
to capture the attention of the youth. Market penetration into metros
through innovative advertising, and an emphasis on distribution
and reach for a better opportunity to see (OTS) and opportunity
to buy (OTB) are required immediately. Promotional offers, I think,
will rekindle interest among bored consumers. Safe Foods should
not give up the advantage that it enjoys in the upcountry market.
Building a brand is very difficult. Having
built Sneha over all these years, it is only prudent that Safe Foods
strengthen it by making it as attractive as MNC brands. Building
a brand is about being consumer-oriented and it starts with the
right value delivery for the consumer.
If Suneet wants the brand to imply and promise
consumers quality, he can add catchy and powerful slogans without
changing the name. For example, BPCL, which has been in existence
for years, has a new campaign recently (Pure for Sure) that has
become a smash hit.
The company should take note of Chibber's remark
and remember that it is essential to know the consumer's pulse at
the appropriate time in order to change with times.
Safe Foods should now reinvent itself by giving
Sneha a new and colourful look.
Finally, Safe Foods should leverage its ethnic
brand image and make it a winner, rather than go in for a change
of name. Suneet should remember that Safe Foods has its strengths
and weaknesses just like its competitors. If the strengths outweigh
its weaknesses, Sneha-and Safe Foods-will win.
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