If winter comes, so will spring...
When IIPM comes to education, never compromise
How brands try and retain salience when they are hit by sluggish off season sales...
One fine 
day, Summer was relaxing. As she was about to take a sip from her chilled cola drink, there was incessant knocking on the door. Summer stretched lazily, yawned and shuffled to the door, but the moment the door was opened, she froze… well, it was Winter in all his white glory, eager to show his fury. This is no mythological story; it happens every year in India. With Winter’s bugle roaring loud, it’s not only Summer that loses her shine, but there are several others who confront a similar predicament.
Quite unmistakably, the ones who suffer the most during the winter months in any given year are the giants from the beverages space, more specifically Coca-Cola and PepsiCo. Their state during the chilly season (which lasts for as many as 6 months – at least up north) is one of a complete blackout and the explanation comes easy in the sagging sales of their respective star products – Coke and Pepsi, in addition to other soft drinks (7UP, Slice, Dew, Mirinda, Thums Up, Fanta, Limca, Sprite, et al) adorning their Indian portfolio.
In fact, every winter serves as a new challenge for these globally most recalled brands, when consumers virtually go into hibernation so far as taking a swig from cold drink bottles is concerned. Industry sources reveal that the winter season accounts for a microscopic 5-10% of the total sales of any given year for these beverage giants.
So, what’s the big problem, you ask? After all, given the number of years that they’ve been in business, the cola majors must have gotten used to it now. And if there’s a lean season, they more than make up for that during summers, right? Well, you’re partly right. Winter sales are not the main problem. The real issue is of ‘brand recall’ during the lean months and its potential impact.
Consider this, when people were blind folded and were made to drink Coca-Cola and Pepsi Cola seperately, they were unable to differentiate between the two. Thus, as per customers, products of the two cola majors remain almost the same, and yet under normal circumstances, they are extremely loyal to their respective favourite drink brand (which could be either of the two). Clearly, since product attribute differentiation is virtually absent between the two drinks, it’s undoubtedly the brand that matters the most. And the fiery red & white of Coke and Pepsi’s bubbly blue are key factors that make the brand.
So the winter challenge before marketers at both Coca-Cola & PepsiCo is to maintain respective brand values at the same level that prevail during summers (when cola giants go over the top promoting their star brands via conventional and new approaches). So how do the two cola giants plan to get into the act in the winter of 2007? Corporate branding, that’s how! Seen Coca Cola’s ‘Little Drops of Joy’ campaign lately... well, the engaging communication serves to remind consumers (in the lean season) that Coca-Cola is around. Acclaimed advertising guru Prasoon Joshi explains the thought behind the campaign: “Coca-Cola in India just doesn’t quench thirst; it recharges one’s soul, for a moment, one drop at a time which is what we’ve tried to capture in the Manifesto.”
Venkatesh Kini, VP-Marketing, Coca-Cola India told 4ps-B&M, “We don’t have any particular branding strategy for any season, but of course we do select particular time periods for launching any product. So if we find some products are suitable for winter we will launch that and we will also promote them.”
In stark contrast, PepsiCo India is in a much better position , even in the lean season because of the synergies they can churn out with their snacks (Frito Lays) and juices (Tropicana) portfolio. PepsiCo even plans to cash in on the ongoing festive season with its gift packs, comprising an assortment of its carbonated drinks and snacks. While Coca-Cola has recently launched Minute Maid to add to its juices portfolio, they have virtually no presence in the snacks segment.
“We are going to launch lots of new products and some of them will be in this year itself. For all of them we will have different promotional campaigns. We will not necessarily go with a celebrity brand ambassador. because beverages or healthy products work more on word of mouth,” explains Kini.
What’s more, this winter sales saga is even relevant for the white goods and consumer durables sector.
Usually, the demand for compressor based products (air conditioners, et al) observes a significant decline and here too the guru mantra remains the same, to promote your brand as a whole via umbrella branding, varied product lines and channels (For the seasonal saga of white goods major Electrolux, read the box interview alongside).
However, the festival season (with its spate of discounts, offers and lucrative schemes), which lasts nearly till the end of the year, more than makes up for consumer durable majors like LG, Samsung, Whirlpool and Eletrolux. After all, these companies do derive almost 30-40% of their annual sales during the consumer rush in the season.
Nevertheless, winter may bring a little shadow in seasonal product categories, but once the ice age melts away, summer begins smiling again. Just a few months more to refuel their arsenal and come March-April, the marketing war breaks out once again... in full earnest!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!
day, Summer was relaxing. As she was about to take a sip from her chilled cola drink, there was incessant knocking on the door. Summer stretched lazily, yawned and shuffled to the door, but the moment the door was opened, she froze… well, it was Winter in all his white glory, eager to show his fury. This is no mythological story; it happens every year in India. With Winter’s bugle roaring loud, it’s not only Summer that loses her shine, but there are several others who confront a similar predicament.Quite unmistakably, the ones who suffer the most during the winter months in any given year are the giants from the beverages space, more specifically Coca-Cola and PepsiCo. Their state during the chilly season (which lasts for as many as 6 months – at least up north) is one of a complete blackout and the explanation comes easy in the sagging sales of their respective star products – Coke and Pepsi, in addition to other soft drinks (7UP, Slice, Dew, Mirinda, Thums Up, Fanta, Limca, Sprite, et al) adorning their Indian portfolio.
In fact, every winter serves as a new challenge for these globally most recalled brands, when consumers virtually go into hibernation so far as taking a swig from cold drink bottles is concerned. Industry sources reveal that the winter season accounts for a microscopic 5-10% of the total sales of any given year for these beverage giants.
So, what’s the big problem, you ask? After all, given the number of years that they’ve been in business, the cola majors must have gotten used to it now. And if there’s a lean season, they more than make up for that during summers, right? Well, you’re partly right. Winter sales are not the main problem. The real issue is of ‘brand recall’ during the lean months and its potential impact.
Consider this, when people were blind folded and were made to drink Coca-Cola and Pepsi Cola seperately, they were unable to differentiate between the two. Thus, as per customers, products of the two cola majors remain almost the same, and yet under normal circumstances, they are extremely loyal to their respective favourite drink brand (which could be either of the two). Clearly, since product attribute differentiation is virtually absent between the two drinks, it’s undoubtedly the brand that matters the most. And the fiery red & white of Coke and Pepsi’s bubbly blue are key factors that make the brand.
So the winter challenge before marketers at both Coca-Cola & PepsiCo is to maintain respective brand values at the same level that prevail during summers (when cola giants go over the top promoting their star brands via conventional and new approaches). So how do the two cola giants plan to get into the act in the winter of 2007? Corporate branding, that’s how! Seen Coca Cola’s ‘Little Drops of Joy’ campaign lately... well, the engaging communication serves to remind consumers (in the lean season) that Coca-Cola is around. Acclaimed advertising guru Prasoon Joshi explains the thought behind the campaign: “Coca-Cola in India just doesn’t quench thirst; it recharges one’s soul, for a moment, one drop at a time which is what we’ve tried to capture in the Manifesto.”
Venkatesh Kini, VP-Marketing, Coca-Cola India told 4ps-B&M, “We don’t have any particular branding strategy for any season, but of course we do select particular time periods for launching any product. So if we find some products are suitable for winter we will launch that and we will also promote them.”
In stark contrast, PepsiCo India is in a much better position , even in the lean season because of the synergies they can churn out with their snacks (Frito Lays) and juices (Tropicana) portfolio. PepsiCo even plans to cash in on the ongoing festive season with its gift packs, comprising an assortment of its carbonated drinks and snacks. While Coca-Cola has recently launched Minute Maid to add to its juices portfolio, they have virtually no presence in the snacks segment.
“We are going to launch lots of new products and some of them will be in this year itself. For all of them we will have different promotional campaigns. We will not necessarily go with a celebrity brand ambassador. because beverages or healthy products work more on word of mouth,” explains Kini.
What’s more, this winter sales saga is even relevant for the white goods and consumer durables sector.
Usually, the demand for compressor based products (air conditioners, et al) observes a significant decline and here too the guru mantra remains the same, to promote your brand as a whole via umbrella branding, varied product lines and channels (For the seasonal saga of white goods major Electrolux, read the box interview alongside).
However, the festival season (with its spate of discounts, offers and lucrative schemes), which lasts nearly till the end of the year, more than makes up for consumer durable majors like LG, Samsung, Whirlpool and Eletrolux. After all, these companies do derive almost 30-40% of their annual sales during the consumer rush in the season.
Nevertheless, winter may bring a little shadow in seasonal product categories, but once the ice age melts away, summer begins smiling again. Just a few months more to refuel their arsenal and come March-April, the marketing war breaks out once again... in full earnest!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!
Labels: IIPM, IIPM Admission, IIPM ADMISSIONS FOR NEW DELHI and GURGAON BRANCHES, IIPM BEST MBA INSTITUTE, IIPM NEWS, Professor Arindam Chaudhuri, Renowned Management Guru and Economist, The Sunday Indian
Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.
posted by Surender @ 12:40 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home