4Ping Fundas : Ingredient Branding

Ingredient branding is a branding strategy wherein company also promotes the key ingredient used to make the product and how it can be benefited to customer. Used ingredient works as an USP of the product. Sometime ingredient transfers its brand identity to the host brand so both the brands get benefited.

Let’s take some cases of Indian brands.

Amul Probiotic Ice Cream and Lassi
Amul, the brand owned by GCMMF Ltd. launched its probiotic range of ice cream in early 2007 -Amul Prolife Icecream-. Probiotic food is relatively new concept in India but it has been very successful in western countries. Amul Probiotic ice cream contains special kinds of bacteria which is good for human body. It helps in digestion, improve the immune system and fight against allergic reaction. This probiotic bacteria works as an ingredient and brand is being promoted with this unique feature. Probiotic Lassi is also one such product and under test marketing phase.

Clinic All Clear with ZPTO
HLL introduced Clinic All Clear ZPTO in 1999. ZPTO short form of Zink Pyrithione, a chemical compound used as anti-fungal and antibacterial agent. Company promoted unique ZPTO in their advertising. Proctor and Gamble also used same strategy to promote Head & Shoulder shampoo with ZPTO. Though most of consumers didn’t know anything about ZPTO and its benefit, it really created wonders for the brands.

Why Ingredient Branding?

• Ingredient branding gives boost to the host brand when ingredient brand has its own brand identity. Don’t you prefer PC or Laptop with “Intel Inside” tag on it? It is because of brand identity created by Intel for its microprocessors. (Intel is a classic case of ingredient branding. We will discuss in it future post.)
• Ingredient also helps product if product is creating new category. Remember, Amul is pioneer in pro-biotic foods in India and same strategy has been followed by MNC behemoth like Nestle (NesVita Curd) and HUL (Moo – Calcium Enriched Ice-cream).
• Many times consumer perceives ingredient as an added advantage so he is not reluctant to pay extra price for it.
  

4Ping Brandalysis: Tiger Balm

Tiger Balm: Dard Mitaye Duniya Ka

Tiger Balm is an interesting example of a truly Asian brand that has gained international recognition. It is originally manufactured and distributed by Haw Par Healthcare in Singapore. Tiger Balm was originally developed in the 1870s by a herbalist, Aw Chu Kin, in Rangoon, Burma, who asked his sons Aw Boon Haw and Aw Boon Par on his deathbed to improve and market the product. Using their marketing acumen, Haw Par brothers grew the salve business into an empire that today includes pharmaceuticals, banking, insurance, rubber and newspapers under the Haw Par name. Over the century, Tiger Balm has won the hearts of Asians and eventually the world.

Packaged in unique hexagonal jars and colorful paper boxes, and adorned by a tiger leaping across the label, Tiger Balm was originally called Ban Kim Ewe (ten thousand golden oil). The name tiger was derived from the founder’s son, Boon Haw which means “gentle tiger” in Chinese.

Tiger Balm is a global brand in true sense. It was bought to India by Elder Pharmaceutical Ltd and witnessed law profile advertising. (Elder Pharmaceutical also has strong portfolio of brand like Fairone, AMPM Mouthwash and Blistex.)

The balm market size is estimated to be at. Rs. 500 crore in India. It can be further divided in to two categories, Pain Reliever Balm and Cold Rub Balm. Tiger balm commands 6% market share in Rs. 300 crore pain reliever market and directly competes with brands like Moov, Iodex, Himani Fast Relief and heritage brand Amrutanjan. It is available in two different variants. Earlier it was available as Tiger Balm Red but consumer survey revealed that red is strong and caused a burning sensation when applied on the nose. This result lead company to launch new mild variant called Tiger Balm White in Oct. 2005. It is effective for headaches, stuffy nose, stomach flatulence, insect bites, itchiness, and muscle and joint aches

Elder Pharmaceutical is also planning to launch its mini size pack of 3 gm. to encourage trial purchase. According to company resources, biggest problem for Tiger Balm is sales erosion caused by similar sounding products available in the market. Tiger Balm has a tremendous heritage following in Asian countries, and it is now successfully marketed in over 75 countries worldwide.

Print Ad: Tiger Balm

4Ping Brandalysis: Tortoise Mosquito Repellent

Tortoise Mosquito Repellent: Kachhua Jalao, Macchar Bhagao

Tortoise mosquito repellent coil is a 40 years old brand owned by Bombay Chemicals Ltd (BCL). Tortoise mosquito repellent dominated around 67% of market till 1994 and was a generic name in the product category. Infact “Kachhua Jalao, Machchar Bhagao” was one of very famous campaign of those days with humorous element.

Mosquito repellent’s market can be divided in to coil, mat, vaporizer, aerosol and cream with total marketing size of Rs. 1600 cr. and growing at the annual rate of 15%. This market stood at Rs. 400 Cr in 1997. It attracted multinationals like Reckitt Benkisser, Sara Lee in late 90’s and witnessed lot of happenings in the market. AllOut, the brand by Karamchand Appliences created a new sengment of liquid vaporizer.

Mosquito repellent has been growing category because of four month long monsoon season in most of the parts of India. There are around 300 spices of mosquitoes and are responsible for malaria, dengue fever and chikungunya.

The coil segment of the market is around 35% of total market size and dominated by Mortein and Good Night, brands by Reckitt Benkiser and Godrej Sara Lee respectively.

Tortoise (Kachhua) coil was pioneer brand in the Indian market and was the first player to provide solution to get rid of mosquitoes. But this pioneer brand could not stand against MNC players. Company failed to upgrade its product in accordance the market need and total market share came down to 12% in 2000. Mortein introduced red colour coil which is believed to be long lasting than green colour coil. Mat and aerosol was also growing category in the urban market.

In effort to rejuvenate the historical brand, Bombay Chemical Ltd. introduced Tortoise Active, the herbal coil. They promoted hazards of allethrin based coil on major TV channels like Zee and Sony. In 2002, it also introduced Tortoise Lazor in strategic tie up with Byers India. Tortoise Lazor contained NAK (A molecule patented by Byers AG) based coil. NAK acts on the wing of mosquitoes thus reducing speed of flight. So mosquitoes never come near the area and even it doest it can not fly and grounded to death for want to water. It was claimed by the company that NAK based coil is less toxic and two times more effective than allethrin based coil. Company was so confident about the claim that they went on to give money back guarantee on purchase. Sales team of BCL also conducted live demonstration to convince distribution about benefits of the product. For Tortoise NAK, company also adopted the strategy to give live demonstration of product in some backward area where the water-logging problem was high. All this efforts helped company to regain it market share a little bit but it could not gain the market leader status and top of the mind recall.

4Ping Fundas : Sensory Branding

Interesting Facts:

• According to recent study conducted in America, the tempo of background music affects the pace at which shoppers move and diners eat. Faster music in a restaurant can speed up the flow of diners. Slower music can lead people to spend more time in stores, so that they are more likely to buy something.


• Some super markets in North America are connected to bakeries by hundreds of meters of pipeline. The pipelines carry the aroma of fresh bread to the stores entrances.


• Singapore Airlines has patented a distinct aroma (Stefan Floridian Waters) that permeates its entire fleet and is included in the flight attendants perfume and also blended into the towels served before take-off. Surprisingly regular customers are distinctly able to relate to this scent to lovely attendants and impeccable service of Singapore Airlines.


• When Rolls-Royce buyers began complaining in the mid-1990s that the new cars didn't live up to their predecessors, researchers tracked the problem to its source: the smell! Using a 1965 Silver Cloud as a reference point, the company deconstructed the scent, identifying 800 separate elements. It then recalibrated the aroma of leather and mahogany and now sprays it under the seats to re-create the scent of a classic "Roller."


• Break Fast cereal manufacturer Kellogg’s has created unique sound of crunch with the help of Danish Laboratory.

And the last one,

• Mercedes-Benz has 12 engineers dedicated to the sound of opening and closing of doors.
  
  All given example leads to a new discipline in the area of neuroscience marketing called Sensory Branding. Sensory branding is about involving all sense of customer into branding activities of product. Most of the branding activity focuses on just eyes and ears. Sensory branding goes beyond it and claims that smell can generate higher value of brand recall.
  
  Branding is all about creating emotional ties between product and consumer. But emotion is not only limited to eyes and ears. If emotions are generated through smell, touch and feel then why it can’t be used in building a brand.
  
  In his recent book “Brand Sense”, renowned Brand Guru, Martin Linstorm claims that Almost 83% of marketing and brand building concentrate on just two senses and just 17% make use of the other 3 senses. This fact is based on global research done by Millward Brown which studied the relationship between branding and sensory awareness. He also notes that only 3% of Fortune 1000 companies have given thought to using smell in their marketing or branding, despite the claim that 75% of our emotions are generated by what we smell. Lindstrom’s basic point is simple - brands that appeal to multiple senses will be more successful than brands that focus only on one or two.
  
  This study of branding has given new direction in the area of branding and was called “the first branding revolution in 30 years” by the American Advertising Research Foundation.
  
  In India, this practiced has been followed by some of the big brands (Knowingly or Unknowingly?) For example Pepsi, it launched aroma centres in some cities which emanates the smell of coffee which attracts the attention of passer-bys to its newly launched cafechino coldrink.
  
  Mr. Kishore Biyani confesses in his book “It happened in India” that it doesn’t not give feeling of “Sabse Sasta”, unless customers in Big Bazaar doesn’t feel crowd of people around and rub their shoulders to each other.
  
  There are some product in which sensory branding can be implemented effectively i.e. Pen (Smell of Ink), Book Publishing (smell of pages of book ), Retail etc.
  
  Sensory Branding can also have negative impact if it is not appropriate to the environment. The smell of fresh-baked chocolate chip cookies would be appropriate in a bakery or coffee shop but the same smell gives negative feeling when it is used in toiletries area of retail shop. Consumer’s brain will process it differently.
  
  So next time when you can not resist your self by the aromatic smell of coffee when you are passing by CCD and end up buying one, remember you are falling into the marketing trap laid by Brand Manager.
  
  I am sure if my favourite Bhujia Shop Keeper can make a mobile stove to fry Bhujia and move around in nearby area just to generate smell of Bhujia, he can attract more customers to his shop.