Godrej: A fine market follower!!

Even though science says that the outer skin color cannot be changed by applying the fair creams externally, Indians have a perception that fairness is the real beauty and it can be achieved easily. Even I have tried “Fair and Handsome”. But regrettably it failed.


Theodore Levitt, in his article” Innovative Imitation” argued that the strategy of the product imitation is lucrative as that of the product innovation. Godrej made the right way through it.
With the FMCG major HLL’s” Fair& lovely” and Cavin kare’s “Fair Ever” holding a majority of the market share and they are in a severe competition to grab a dominant position in the Indian fairness cream market. Cavin kare was considered to be a prominent player because “Fair ever” was launched with the USP of ‘a fairness cream with saffron’ and the brand associated itself with the herbal characteristics.
In this circumstance Godrej created a new product category, fairness soaps by launching its FairGlow Fairness Soap. It was positioned as twin advantage soap, a clean fresh bath and the added benefit of fairness. Then Godrej had decided to furnish direct competition against the major player by extending its brand by launching “FairGlow fairness cream”.

Strategy used by Godrej:

Godrej launched the website fairglow.com and involved in the online promotional campaign called “FairGlow face of the fortnight” where a winner is selected and awarded with prizes.
The company also launched the ‘FairGlow Express,’ the first branded local train in India partnering with the western railways. The FairGlow cream was also launched in a affordable sachet.
The market leader HLL later launched Lux Skincare soap, positioned on the sunscreen stand followed the market follower Godrej to make its presence in the new product category.

HLL‘s Delicious kwality Strategy!

It is crystal clear that Hindustan lever limited is still the undisputed leader in India in the FMCG sector. Its exceptional strategy and focus upon the marketing plan made it as the leader. HLL main focal point is to enter into the ice cream industry under the brand name “Kwality walls”. Its progress in this segment has been made through merger and strategic alliances with the Indian groups.

Strategy used:
As marketing strategy in the introduction stage, it introduced range of products like feast, softies, Max and Viennetta, Vanilla Gold, Black Currant Sundaes which targeted the take-home segment. In the next stage, in expanding the segment, it had a alliance with the pizza corner in developing “home delivery concept”, which uses distribution network of the pizza corner to make home delivery for the customers.
HLL also involved in “activation and visibility strategy” in which it mainly focuses upon various promotional campaigns to increase the brand awareness and brand visibility. Its announced a special contest for valentine’s day. It next campaign for its Feast range ‘What’s on your stick?’.
HLL also launched innovative campaign called “Ek Din Ka Raja” which was awarded the 'Best Promotion Campaign in India'. This campaign also awarded Silver for the ‘Best Idea or Concept’ and a Bronze for the ‘Best use of Direct Marketing’. This campaign is about picking up 10 lucky customers and giving them 10 lakh rupees to spend on a single day. For its summer promotion it had a alliance with the cartoon network

Positioning:
Some brands under Kwality walls are
Feast range of ice creams was positioned as a 'youth ice cream brand with an attitude'.
Cornetto was positioned as the product for romantic and special moments.
Sundaes positioned as an offering, which helped bring families together for fun and enjoyment

Cielo: A Strategic Blender?

As we all familiar with the brand Cielo sometimes before, is dormant today.
What actually pushes this brand to such a quagmire?

Cielo was the brand owned by Daewoo motors India limited, was a part of the $ 65 billion Daewoo Group founded in 1967 in Korea. The group diversified into general trading, construction, machinery, automotive, ship building electronics and tele communications. Cielo was launched in India in July 1995, since there is no option for the Indian customers in the mid size segment except Maruti esteem. Within a short span of time Cielo saw a large volume of bookings from the customers. This made a intense competition for Maruti. Soon after the situation turned upside down that all the bookings made by the customers for Cielo were cancelled and it faced a huge problem.

Circumstances:
Daewoo motors saw a intense competition and higher customer expectations in terms of quality and performance in developed markets. Hence the company decided to penetrate in the emerging markets where the demand for automobiles was expected to increase in the future; it launched the brand Cielo in India.

Strategies used:
Promotional campaign, called the ‘Diwali Bonanza scheme’ for corporate, offering one Cielo free on purchase of every ten cars. This campaign was initiated by the marketing head of Korea, who had no idea about the Indian auto industry and the target market.
Frequent changes in positioning. The car was positioned as ‘technology with aesthetics’ which was later moved on to a ‘premium family car’ positioning followed by “value-for-money” car.

Consequences:
The customers began to look the brand with a suspicion because of the way it had been marketed
The Cielo had been promoted as a feature-rich, luxury family car. But the frequent change in the positioning made confusion among customers. Since there is a gap between a premium car, a family car and value for money car. Cielo fails to grab a good image for themselves in the minds of the customers.
The Nexia was promoted as being an upgraded version of the Cielo. The move failed badly because the customers failed to see any worthwhile additions to the earlier Cielo model.

Cielo fails in “Positioning”. Even though Daewoo is one among the first multinational player to enter into the Indian auto market only after Maruti Udyog Limited, improper market study leads to the fall of the brand Cielo.

Will we learn a lesson to concentrate upon giving importance to “Positioning”?
Other brands of the company: Matiz – small car segment