Brand Update : Axe finally respond to competition through Axe Signature

So finally a response from HUL to competition. After being relegated to No.3 in the deo market by Fogg and Wildstone, Axe finally launched its answer to the competition- Axe Signature Collection Deo.

It was surprising that HUL which is supposedly the best marketing machine in India took so long to respond to competition. Its almost a replay of the Nirma- Surf episode where the market leader was slow in responding to local competition eventually to find itself dethroned as  the market leader. HUL (in my opinion ) was very slow in reacting to Fogg's entry into the market with the No-Gas proposition. The result is that Axe has been beaten down to number 3 in the market.

Now HUL has responded with a variant branded as Signature Collection. The basic USP is the variant is 3X times more perfume. The brand has the tagline " Don't Fade Away" 

Axe Signature is running its campaign across the channels. The television commercial retains the seduction proposition but is now subtle with that message. The message the new variant is pushing is the long-lasting fragrance. 

Watch the ad here : Axe Signature

The " Don't Fade Away " proposition is smart because that idea is different from the current market leader Fogg's no-gas USP. So Axe is now telling the consumers that it is better than others because other fragrances fade away. The packing resembles Fogg Black Collection cannot be wished away as a coincidence.

Although the message is nothing new, Axe has executed the campaign nicely.

Priced at Rs 225, Axe has priced this variant lower than the competition. 

The entry of Axe into the no-gas segment has market as shift in the market dynamics. The no-gas segment is now growing at 30% and is already worth around Rs 250-300 crore in the Rs 2500 crore deo market. This segment which is now named as body-perfume segment is where all the action is. 

The launch of Signature is expected to arrest the growth of Fogg and Wildstone. Since this is a launch from Axe, old loyalists are bound to try it. Rest is all dependent on the delivery of the promise. 

Positioning Sharing : Axe Signature's long lasting fragrance proposition is not new, the brand Set Wet deo already has the same positioning ( Watch the ad). 

Long-lasting is a widely used positioning. Across various categories brands has been using this positioning and the novelty and believe-ability of this positioning has come down drastically. Pepsodent ( dishum-dishum) , Amaron ( lasts long really long) Colgate Total are some of the brands that share the same positioning. 

Brand Wars : Perk Vs Munch

Its been a long time since Indian advertisement world saw a humorous fight between the brands. There has been high profile competitive wars between the brands like Horlicks Vs Complan, Vim Vs Dettol, Dettol Vs Lifebuoy, Pepsodent Vs Colgate etc but these were serious fights. 

Recently the new war started between the arch rivals Perk and Munch. These brands were keeping different paths between each other for quite some time. Both were trying to position themselves on different attributes ; Perk focusing on the glucose content while Munch was focusing on the crunchier proposition. However, Perk decided to poke Munch by launching the first TVC featuring the son - Monu leaving home because his father gave the bigger, heavier Perk to his brother Sonu.

Watch the TVC here : Perk Monu

Not to be left behind, Munch countered with another TVC which features Sonu leaving the father because he gave the tastier Munch to the brother Monu.

Watch the TVC : Munch Sonu

The Perk TVC was hilarious with the brand trying to outsmart Munch by talking about the difference of 1 wafer and 5.5 grams with the Perk. 

Munch however tried to downplay the grammage comparison by focusing on the taste. The brand humorously counter's Perk's claim by stating that chocolates are eaten for taste and not weight. While this argument is weak counter for Perk's claim, what saves Munch was the humour and the instant fight back to Perk's offensive.

 Had Munch not reacted , Perk could have used the "high grammage " value for money proposition  very effectively 

Munch was recently investing heavily in the promotion by taking in cricketer Virat Kohli as the  brand ambassador . Perk was struggling with the positioning proposition and was in my opinion had a weaker platform based on the glucose content. Perk was trying the break away from that weaker spot by launching an offensive against Munch.

With the two brand's paths crossing now, it will be a interesting space to watch for.

Read more brand war
Brand war : Sensitive Toothpaste
Brand war : Colgate Vs Pepsodent

Marketing Strategy : Toothpaste majors fights challengers effectively

A recent article in ET mentions that the challengers in the Rs 7000 crore toothpaste market like Anchor,Ajanta Babool and Vicco were wiped out by the major brands like Colgate, HUL etc. A few years ago the major toothpaste brands like Colgate and Pepsodent were shocked by the huge challenge from brands like Anchor ,Babool etc . The challenger brand used price as the major USP and gained more than 15% share in the market.

Its interesting to understand how the majors fought these challengers. The following are the strategies used by the major brands to fight the price competition -

• React aggressively : The assault from the challenger brand was faced by the major brands aggressively. Brands like Colgate, Pepsodent etc reacted sharply to the competitor first by reducing the price to arrest the severe market share loss.
• Flanker brands : The major part of the success of market leader was the use of flanker brands to ward off price competition. Colgate effectively used Cibaca as the flanker brand to fight the price competition thus preserving the price premium of the market leading brands.
• Use smart SKUs : The toothpaste market leaders also used less prices SKUs to neutralize the price competition. The availability of big brands in affordable packs in a way prevented the consumers from switching to a less priced local brand.
• Advantage in differentiation : The age old concept of Positioning and Differentiation helped the leading brands to effectively fight the price competition. The low priced brands failed to counter the brand-equity with price alone. 
• Deep pockets : The deep pockets of the likes of Colgate and HUL enabled a large aggressive and sustained offensive against the challengers. Regional brands didn't had a chance fighting the deep pockets.

The lesson for the challenger brand is not to fight the big players without credible differentiation. 

Brand Wars : Sensitive Toothpastes

Indian toothpaste market is worth Rs 6000 crores ( Source Business Line) and growing at 20%. Colgate has been the undisputed market leader in this market.. Competitors has been trying to make a dent in the share through almost every strategy listed in marketing textbooks.

It was an unlikely player- Glaxo Smithkline Beecham (GSK ) which really broke into the stronghold of Colgate. GSK in 2010 brought its global dental care brand Sensodyne into the Indian market. The sensitive toothpaste segment was very small and almost unknown to the larger Indian market. Colgate had presence in that niche with its variant Colgate Sensitive. 

Sensodyne surprised the market by capturing 10% of the segment within 4 months on launch. The heavy awareness campaign made customers take notice of the brand.The campaign featured " Chill Test " where the customers who had sensitive teeth were asked to tryout chilled products after using Sensodyne. The ads were very convincing and prompted many customers to try Sensodyne.Besides the Above-The -Line ( ATL) promotion, GSK also contacted around 15000 dentists to promote Sensodyne ( Source- TOI). In one year, Sensodyne became a 100 crore brand and the Sensitive toothpaste market was growing at more than 45 % p.a.

Colgate being an agile marketer was not keeping quiet . The brand launched another variant Colgate Sensitive Pro-Relief inorder to arrest the growth of the competitor.Both the brands benefited by the growth of the category which has grown to about Rs 500 crore. Sensodyne inched very close to the market-leader and at one point became the leading brand in the sensitive toothpaste category. According to reports, Sensodyne and Colgate Sensitive are now having almost same market share in the category. 

Pepsodent from HUL also got into the fray with its variant Pepsodent Expert.While every brand focused on providing relief from sensitive teeth, Pepsodent differentiated by offering  ' relief and repair'  to the consumer. This move by Pepsodent forced the players to rethink their offerings. In the latest campaign, Sensodyne has added the 'repair' proposition to the brand's positioning thereby achieving points-of-parity with Pepsodent Expert brand. 

Sensodyne success can be seen as the success of a specialist brand's fight with a product-line extension. Consumer's view Sensodyne as an expert in the field and hence the claims are more effective compared to the product-line extensions. However, Colgate and Pepsodent were quick enough to retaliate to the entry of Sensodyne albeit with little success.

The fight in the toothpaste segment became more interesting with the launch of Paradontax by GSK. Another specialist brand against bleeding gums. The war has just began. 

How to Host an Effective Facebook Competition For Your Business

Facebook has become a phenomenon and an invaluable marketing tool.  It is becoming increasingly popular as a space to host competitions and there are some key points to understand in order to run a successful Facebook promotion.

Understand the Rules of Facebook

The key point to understand is that all promotions must be run through a 3rd party app.  This is true in all cases even if the competition simply involves submitting a name.  Even though there are numerous competitions on Facebook which ignore this rule, they do so at the risk of having their Facebook presence shut down completely.  If the cost of using a 3rd party app would be prohibitive, it is possible to use Facebook to promote a contest which is being hosted elsewhere such as on a blog or a 3rd party website.

The 2nd most important rule is that all promotions on Facebook must be clear in their terms and conditions and these must be visible on the front page of the promotion.

Understand the Goal of the Competition

Is the aim of the competition to collect e-mail addresses for a mailing list, to drive traffic to a Facebook page or to guide users to an external website?  What is the current state of the platform and what changes will need to be seen for the competition to be judged a success?

Assessing the current state of the platform could be a good opportunity to see if anything can be done to make it more appealing before the competition starts.  Once the competition is in progress, it is important that no significant changes are made (unless they are connected with the competition). Otherwise, it will become difficult to impossible to judge whether the increase in traffic is due to the competition or due to the improvements to the platform.

Understand that Technology is a Delivery Method - Not a Goal

In many ways, running a successful Facebook competition is essentially identical to running any other sort of competition.

Make the effort needed to enter the competition commensurate with the prize on offer.  Users may leave their e-mail address for a small prize, but are unlikely to go to any great degree of effort unless the prize is very desirable.  A great way to find out what people find desirable is simply to ask current users what they would like to see as a competition prize.

Encourage users to make their friends aware.  Since the number of entrants in a competition reduces each individual's chances of winning, giving free entries in return for referring other people is a common strategy for encouraging people to spread the word.

Make sure that everything works as it should.  This is possibly the most fundamental rule of all; however it is surprising how often it is ignored.  Any questions must be checked and double-checked (both for accuracy and for spelling) and if the answers to them should be found on a website make sure they are there.  Likewise, check that the method for entering the competition works as it should and is regularly monitored for glitches, technical or otherwise.

Special guest post by Amy Harris who is a writer forExpert Marketwhich offers a free service to businesses, providing a sourcing tool for finding office equipment and business services. She enjoys helping businesses discover the best marketing strategy.