Branding Blitzkriegs

Branding Blitzkriegs That Will Rock 2012

The world is not going to end in 2012. what has ended however are the usual brand wars that marketing pundits predict at the start of every new year. move over Coke vs Pepsi, the new kids on the block are raring to have a go...

_________________________________________________________________________

January is the month of soothsayers; of crystal gazing about the year ahead; and motley predictions about life, love, career, family and even the end of the world (this one’s for the Mayans, the I Ching and the Bible, interpretations of which reveal that the date for Armageddon has been set down for 2012). But India is another story. Irrespective of the fate of the world, the start of the year has had politicians, bureaucrats, businessmen and even members of Team Anna going batty about what 2012 has in store for them.

For marketers however, the start of the year is traditionally more agonising and full of the unknown than others. The onset of January almost always sends marketing pundits in a tizzy fantasizing about better brand visibility and higher growth as the final quarter sets in. They may have frittered away the rest of the year planning big budget ads, events and contests to improve the bottomline, but January is when the winds get taken off their sail because the sales just don’t add up to the heavy duty marketing chutzpah. It could be because of the rising input costs, the falling margins, slow consumer demand or numerous other reasons that seem to be confounding the Indian economy right now, but it is there.

So this January has only seen the pressure on marketers go up. If bottomlines are down at the end of the third quarter, CEOs are demanding more action for better results before March 31st. And if bottomlines are up, then the bid is to raise the stakes and outperform in the third quarter perhaps for a mouth-watering incentive if you are lucky. Any which way you look at it, the beginning of the New Year will witness some exciting brand battles as marketers attempt to score a one up against rivals. The rest of the year of course will follow suit.

Interestingly, while some of the most eloquent brand wars have traditionally found shelf space in the FMCG market (recall the Coke vs. Pepsi shindig or the Surf versus Ariel standoff), the fast growing durables, electronics, automobile, financial services and media markets in India have spawned close battles in these sectors. What’s more, the brand battles of 2012 are special in the sense that they are unusual in their non-conformity. It’s not Maruti versus Hyundai or LG versus Samsung or Star versus Zee this year. Instead it’s a year where the old has given way to the new, albeit a little hesitatingly. Read on for the proof of the pudding is indeed in the eating...

SUZUKI VS VOLKSWAGEN

They say that the Indian auto market is one of the largest in the world. But clearly not large enough for two partners to stick together and do business. And that is precisely the story of cohabitants turned competitors Suzuki and Volkswagen (VW). Two years ago, VW acquired a 19.89% stake in the Japanese auto giant hoping to benefit from Suzuki’s expertise in the small-car segment and make inroads into emerging markets like India. But before the partnership could celebrate its second anniversary, Suzuki terminated the partnership late last year citing breach of contract.

How the end of this road will play out in global markets is anybody’s guess, but in India at least VW seems intent on having the last laugh. Taking advantage of Suzuki’s domineering presence here, the last couple of years has seen VW make quick gains in India. While Maruti Suzuki was busy resolving labour issues and streamlining production shortfalls, VW walked away with some of their market reach. VW commands only a 4.2% market share in India, which may seem miniscule in front of Maruti’s 41.42%. But experts agree that VW has gained the maximum out of the bad times that Maruti has seen over the past 12 months. VW’s deliveries to customers in India doubled to 111,600 last year even as Maruti Suzuki saw sales decline by 16.5% to 684,892 units between April and December.

VW’s aggression is indicative of the marketing mayhem in the days to come. Take product strategy. Volkswagen Polo competes directly with Suzuki Swift and Ritz while Vento competes with SX4. Going forward, VW is expected to bring its small cars like Golf and UP to the Indian market taking the battle a notch higher. “We currently have a very small market share in India but are hopeful of a 10% market share by 2018,” says Ulrich Hackenberg, Head - Technical Development, VW AG.

Suzuki isn’t sitting quietly either. With seven small cars in its portfolio, the company is now expanding to other segments. The premium Kizashi and soon expected Ertiga are testimony to the Japanese major’s renewed focus. The company is betting on its pan-India network to preserve its dwindling market share.

With Suzuki making every attempt to regain its lost market over the next 12 months, VW may well find it a difficult to lure Maruti loyalists to drive cars with a VW insignia. But then, upwardly mobile consumers may find it equally tough to resist VW’s German technology appeal. Look out for some subtle fireworks ahead.

HERO VS HONDA

It’s always been Hero Honda versus Bajaj and so when suddenly you end up just writing Hero Honda with an ‘and’ in between, nostalgia is bound to strike. Here’s another set of friends turned foes, who after walking hand-in-hand for 27 years, are now standing head to head in the Indian two-wheeler market.

Hero MotoCorp and Honda Motorcycle and Scooters India (HMSI) parted ways in 2010 and though Hero was to use Honda’s brand name till 2014, the company launched its new positioning and brand slogan in August last year. Hum Mei Hai Hero, brought to life by music maestro A. R. Rahman, has been a positioning masterstroke of sorts – at once reiterating the brand’s strong association with India and distancing itself from Honda. “We were ready to take this plunge solo and we have had a great 2011, with sales of more than six million units, the largest by a single vehicle manufacturer in the world,” says Pawan Munjal, MD, Hero MotoCorp.

Honda’s simultaneous launch of its India specific brand identity ‘Sach Kar denge Sapne’ last year outlines its own ambitions for the Indian market. We’re not saying that Honda will dethrone Hero Honda with its 45% market share. What we are saying is that Honda will definitely move fast this year to increase its own 13% market share, and any gains are likely to be pocketed from its former partner’s kitty.

On the product front, Hero is already making its presence felt in segments beyond the bread-and-butter models with the trans-roader Impulse, apart from showcasing the Ignitor and Passion Xpro during Auto Expo 2012. But Honda has also revved up. N. K. Rattan, Vice-President – Sales, Marketing and Planning, HMSI says that they “have invested over Rs.1,800 crore in the Indian market so far and will be putting another Rs.1,000 crore in 2012.” And it’s not all talk. In a race to sell more two-wheelers, Honda is trying to replicate its successes in the scooter and the 150cc segment. Auto Expo 2012 saw HMSI unveil 7 new India specific two-wheelers including the much-awaited 110cc mass motorcycle Dream Yuga, sporty performance bike CBR 150R, and the VT 1300CX and CBR 1000RR Fireblade in big bikes portfolio.

Honda is clearly betting on its modern technology and strong R&D to help spruce up volumes in the short-run, while Hero’s strong foothold in rural India is its abiding strength in the Indian market. The stage is set for a clash of the titans in 2012.

NOKIA VS SAMSUNG

The Samsung versus Nokia brand battle has all the makings of a Coke versus Pepsi marketing standoff. Rewind to less than a month ago. Marketers at Nokia must have been stunned to see spunky Samsung adverts on big screen during a special screening of Shahrukh Khan’s Ra.One for Nokia’s premium customers at a Delhi multiplex. A big ambush by Samsung’s marketing honchos.

Here’s another global war, being played out on Indian turf. Having already become the world’s No.1 smartphone maker in the third quarter of 2011, Samsung has expressed confidence in being crowned the world’s largest cellphone maker in 2012 ending Nokia’s 14-year reign. The battle lines are drawn similarly in India.

Not too long ago it was Nokia versus the rest of the players in the Indian mobile handset mart. That is until Samsung shook itself out of its slumber and flooded the market with more than a dozen smartphones across price points and platforms including Windows, Android and Bada. Ranjit Yadav, Head Mobile Devices & IT, Samsung India, explains Samsung’s strategy for India: “One of our USPs is speaking to market. That’s our advantage, and that’s why in a market like India we are ahead of the game.” He adds that 2012 will see the company considerably expand their popular smartphone range.

According to research from analytics firm Gfk Asia, Samsung may even have displaced market leader Nokia in the smartphone category with a 32.3% of the market share. Nokia of course disagrees with the contention citing figures from third party analysts and says it retains control in the category. Since figures can be interpreted differently by different people, we’ll not go into who’s leading the market now. But for certain, 2012 is likely to be the decisive year for both Samsung and Nokia in India. Refusing to go down without a fight, Nokia has now loaded its arsenal with its Windows based phones in Lumia, and has publicly admitted to targeting a 50% overall mobile market share in India by the end of 2012. Whew… may the sleekest gadgets win!



AXIS VS IDBI BANK

Rural India has been happy hunting ground for public sector banks for too long now. So far only 6.5% of the private banks’ branches are present in rural India compared to 32.7% of SBI and 31.7% of all nationalised banks. But with urban India reeling under the lingering impact of the global slowdown and the huge potential that the hinterlands offer, private banks are now clamouring to stake their claim. Market watchers say that 2012 will be marked by a mass exodus of private banks from urban to rural centres and success will depend on how fast they manage a wide footprint in these markets.

Private sector biggies like ICICI and HDFC have already diversified rapidly over the last two years and now the battle is for the rural markets. Experts say that the marketing war in 2012 will primarily be fought in the hinterlands and between next level banks such as Axis and IDBI. Both banks already have well thought out rural plans in place. Axis Bank for now has only 14 branches in rural India but aims to extend its footprint in tier III, IV and V centres with a population of 10,000 to 50,000 as a part of its rural banking strategy. Branches already dot Punjab, Tamil Nadu, Rajasthan and Gujarat and the bid is to launch 100 more branches across India over the remaining months of this financial year.

Scoring a one up against Axis, IDBI already has over 250 branches in semi-urban and rural centres. The bank has adopted over 150 villages under its financial inclusion plan and has opened hundreds of new savings bank accounts in rural markets over the last couple of years. IDBI’s marketers say that their ‘Grahak Sahayta Abhiyan’, where the bank goes and interacts with the customer, has been particularly rewarding in generating feedback and offering improvement tips to the bank for its rural foray on a regular basis.

The year has just begun, let’s wait and watch how Axis will play its cards to pip IDBI in the rural race.

SONY VS COLORS

So far as Hindi GECs are concerned, 2012 is going to be an important year, not because the market leader will get toppled, but because Sony and Colors may put a deeper dent in the viewership of well established players like Star Plus and ZEE. Despite Star Plus maintaining a lead throughout 2011, Sony and Colors have been giving nightmares to the competition. While Colors continued to thrive on established properties like Balika Vadhu along with reality show Big Boss, Sony did very well by repositioning Kaun Banega Crorepati. Koi Insaan Chota Nahi Hota celebrated the aspirations of the common man. Sony went on to weave soaps like Bade Ache Lagte Hain, based on consumer insights (that 90% Indians discover love post marriage), around the KBC proposition and came up with some winners in hand. The end of 2011 saw Sony intelligently launching 3-4 shows around the concept of parenting and fairy tales which has set the momentum for 2012.

A look at rating points in the last week of 2011 settles a lot of dust. Star Plus clung on to the #1 spot with 325 GRPs, Colors moved to #2 due to the warm reception of the first ‘Golden Petal Awards’. Sony followed at #3 with 240 GRPs. Disappointingly, ZEE TV lagged behind at a distant #4. Danish Khan, Vice President & Head of Marketing, Sony Entertainment Television explains the sudden and spectacular rise of Sony and Colors: “Consuming patterns change. Every half an hour you can’t just present the same wine in a new bottle.”

Couch potatoes can get ready for some titillating times ahead with Sony and Colors adding ample zing to the GEC party by not only heckling market leaders but also vying to undo each other in the overall GECstakes. Each has a plan to stay ahead of the curve in 2012. And innovation is the name of the game this season!

LG VS PANASONIC

Year 2011 was the year of tardy and below expectations growth for the entire durables fraternity. Bogged down by slump in demand and rising input costs, durable players had a tough time mixing & matching the price and demand matrix. To reach out to consumers battling high inflation, some players - notably LG and Panasonic - have refined their energy efficiency strategy for this year. For them, the brand blitzkrieg is set to revolve around the eco friendly plank. “There is huge demand for star rated products. It is a smart move which helps consumers manage the running cost of appliances,” says L. K. Gupta, CMO, LG India.

LG claims that 65% of its product-portfolio conforms to higher standards of energy efficiency, while Panasonic has specifically roped in Dia Mirza to promote its “Eco Idea” innovation, where it promotes clean energy future technologies, in its product range. Panasonic claims that its new range of split ACs are equipped with ECONAVI intelligent sensors that detects human location, activity level, and sunlight intensity in the room to save energy. Summer awaits a battle royale indeed!

THE BRAND BATTLE THAT WASN’T

It promised to be the mother of all brand wars in 2012 but fizzled out to be a major dud. The gloves were off, the concerned parties were perspiring with preparation, the battleground was ready and the audience was waiting with bated breadths... and then Anna Hazare fell ill.

Yes. Assembly Elections 2012 was the stage in which the high pitched war cry of Team Anna was to resound. Team Anna had declared that they would campaign against the Congress during the upcoming assembly polls in Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur for failing to pass the Lokpal Bill in the winter session. The news had obviously sent the craftiest brains in Team Congress into a huddle given the mass support to Anna’s anti-graft movement for most of 2011.

But the surprisingly thin turnout of supporters for Anna’s fast in Mumbai at the fag end of the year combined with Anna’s ill health (the Gandhian has been advised a month’s rest by his doctors and is presently recuperating in Ralegaon Siddhi away from the media glare) has taken the steam out of this brand battle even before it began. Anna now says he won’t campaign against the Congress party in the assembly elections and we are betting that Kiran Bedi and Arvind Kejriwal will not take up the cudgels without the Gandhian’s presence.

Here was a terrific opportunity for a new and upstart brand like Team Anna to embarrass a 125 year old brand like the Congress party. But it wasn’t meant to be. An opportunity lost, we say, to watch the political marketers slug it out with the cause sellers.
 
Fantastic article. Very informative and gripping. Keep up the good work Puneet. Look forward to read more :)
 
Branding Blitzkriegs That Will Rock 2012

The world is not going to end in 2012. what has ended however are the usual brand wars that marketing pundits predict at the start of every new year. move over Coke vs Pepsi, the new kids on the block are raring to have a go...

_________________________________________________________________________


January is the month of soothsayers; of crystal gazing about the year ahead; and motley predictions about life, love, career, family and even the end of the world (this one’s for the Mayans, the I Ching and the Bible, interpretations of which reveal that the date for Armageddon has been set down for 2012). But India is another story. Irrespective of the fate of the world, the start of the year has had politicians, bureaucrats, businessmen and even members of Team Anna going batty about what 2012 has in store for them.

For marketers however, the start of the year is traditionally more agonising and full of the unknown than others. The onset of January almost always sends marketing pundits in a tizzy fantasizing about better brand visibility and higher growth as the final quarter sets in. They may have frittered away the rest of the year planning big budget ads, events and contests to improve the bottomline, but January is when the winds get taken off their sail because the sales just don’t add up to the heavy duty marketing chutzpah. It could be because of the rising input costs, the falling margins, slow consumer demand or numerous other reasons that seem to be confounding the Indian economy right now, but it is there.

So this January has only seen the pressure on marketers go up. If bottomlines are down at the end of the third quarter, CEOs are demanding more action for better results before March 31st. And if bottomlines are up, then the bid is to raise the stakes and outperform in the third quarter perhaps for a mouth-watering incentive if you are lucky. Any which way you look at it, the beginning of the New Year will witness some exciting brand battles as marketers attempt to score a one up against rivals. The rest of the year of course will follow suit.

Interestingly, while some of the most eloquent brand wars have traditionally found shelf space in the FMCG market (recall the Coke vs. Pepsi shindig or the Surf versus Ariel standoff), the fast growing durables, electronics, automobile, financial services and media markets in India have spawned close battles in these sectors. What’s more, the brand battles of 2012 are special in the sense that they are unusual in their non-conformity. It’s not Maruti versus Hyundai or LG versus Samsung or Star versus Zee this year. Instead it’s a year where the old has given way to the new, albeit a little hesitatingly. Read on for the proof of the pudding is indeed in the eating...

SUZUKI VS VOLKSWAGEN

They say that the Indian auto market is one of the largest in the world. But clearly not large enough for two partners to stick together and do business. And that is precisely the story of cohabitants turned competitors Suzuki and Volkswagen (VW). Two years ago, VW acquired a 19.89% stake in the Japanese auto giant hoping to benefit from Suzuki’s expertise in the small-car segment and make inroads into emerging markets like India. But before the partnership could celebrate its second anniversary, Suzuki terminated the partnership late last year citing breach of contract.

How the end of this road will play out in global markets is anybody’s guess, but in India at least VW seems intent on having the last laugh. Taking advantage of Suzuki’s domineering presence here, the last couple of years has seen VW make quick gains in India. While Maruti Suzuki was busy resolving labour issues and streamlining production shortfalls, VW walked away with some of their market reach. VW commands only a 4.2% market share in India, which may seem miniscule in front of Maruti’s 41.42%. But experts agree that VW has gained the maximum out of the bad times that Maruti has seen over the past 12 months. VW’s deliveries to customers in India doubled to 111,600 last year even as Maruti Suzuki saw sales decline by 16.5% to 684,892 units between April and December.

VW’s aggression is indicative of the marketing mayhem in the days to come. Take product strategy. Volkswagen Polo competes directly with Suzuki Swift and Ritz while Vento competes with SX4. Going forward, VW is expected to bring its small cars like Golf and UP to the Indian market taking the battle a notch higher. “We currently have a very small market share in India but are hopeful of a 10% market share by 2018,” says Ulrich Hackenberg, Head - Technical Development, VW AG.

Suzuki isn’t sitting quietly either. With seven small cars in its portfolio, the company is now expanding to other segments. The premium Kizashi and soon expected Ertiga are testimony to the Japanese major’s renewed focus. The company is betting on its pan-India network to preserve its dwindling market share.

With Suzuki making every attempt to regain its lost market over the next 12 months, VW may well find it a difficult to lure Maruti loyalists to drive cars with a VW insignia. But then, upwardly mobile consumers may find it equally tough to resist VW’s German technology appeal. Look out for some subtle fireworks ahead.

HERO VS HONDA

It’s always been Hero Honda versus Bajaj and so when suddenly you end up just writing Hero Honda with an ‘and’ in between, nostalgia is bound to strike. Here’s another set of friends turned foes, who after walking hand-in-hand for 27 years, are now standing head to head in the Indian two-wheeler market.

Hero MotoCorp and Honda Motorcycle and Scooters India (HMSI) parted ways in 2010 and though Hero was to use Honda’s brand name till 2014, the company launched its new positioning and brand slogan in August last year. Hum Mei Hai Hero, brought to life by music maestro A. R. Rahman, has been a positioning masterstroke of sorts – at once reiterating the brand’s strong association with India and distancing itself from Honda. “We were ready to take this plunge solo and we have had a great 2011, with sales of more than six million units, the largest by a single vehicle manufacturer in the world,” says Pawan Munjal, MD, Hero MotoCorp.

Honda’s simultaneous launch of its India specific brand identity ‘Sach Kar denge Sapne’ last year outlines its own ambitions for the Indian market. We’re not saying that Honda will dethrone Hero Honda with its 45% market share. What we are saying is that Honda will definitely move fast this year to increase its own 13% market share, and any gains are likely to be pocketed from its former partner’s kitty.

On the product front, Hero is already making its presence felt in segments beyond the bread-and-butter models with the trans-roader Impulse, apart from showcasing the Ignitor and Passion Xpro during Auto Expo 2012. But Honda has also revved up. N. K. Rattan, Vice-President – Sales, Marketing and Planning, HMSI says that they “have invested over Rs.1,800 crore in the Indian market so far and will be putting another Rs.1,000 crore in 2012.” And it’s not all talk. In a race to sell more two-wheelers, Honda is trying to replicate its successes in the scooter and the 150cc segment. Auto Expo 2012 saw HMSI unveil 7 new India specific two-wheelers including the much-awaited 110cc mass motorcycle Dream Yuga, sporty performance bike CBR 150R, and the VT 1300CX and CBR 1000RR Fireblade in big bikes portfolio.

Honda is clearly betting on its modern technology and strong R&D to help spruce up volumes in the short-run, while Hero’s strong foothold in rural India is its abiding strength in the Indian market. The stage is set for a clash of the titans in 2012.

NOKIA VS SAMSUNG

The Samsung versus Nokia brand battle has all the makings of a Coke versus Pepsi marketing standoff. Rewind to less than a month ago. Marketers at Nokia must have been stunned to see spunky Samsung adverts on big screen during a special screening of Shahrukh Khan’s Ra.One for Nokia’s premium customers at a Delhi multiplex. A big ambush by Samsung’s marketing honchos.

Here’s another global war, being played out on Indian turf. Having already become the world’s No.1 smartphone maker in the third quarter of 2011, Samsung has expressed confidence in being crowned the world’s largest cellphone maker in 2012 ending Nokia’s 14-year reign. The battle lines are drawn similarly in India.

Not too long ago it was Nokia versus the rest of the players in the Indian mobile handset mart. That is until Samsung shook itself out of its slumber and flooded the market with more than a dozen smartphones across price points and platforms including Windows, Android and Bada. Ranjit Yadav, Head Mobile Devices & IT, Samsung India, explains Samsung’s strategy for India: “One of our USPs is speaking to market. That’s our advantage, and that’s why in a market like India we are ahead of the game.” He adds that 2012 will see the company considerably expand their popular smartphone range.

According to research from analytics firm Gfk Asia, Samsung may even have displaced market leader Nokia in the smartphone category with a 32.3% of the market share. Nokia of course disagrees with the contention citing figures from third party analysts and says it retains control in the category. Since figures can be interpreted differently by different people, we’ll not go into who’s leading the market now. But for certain, 2012 is likely to be the decisive year for both Samsung and Nokia in India. Refusing to go down without a fight, Nokia has now loaded its arsenal with its Windows based phones in Lumia, and has publicly admitted to targeting a 50% overall mobile market share in India by the end of 2012. Whew… may the sleekest gadgets win!



AXIS VS IDBI BANK

Rural India has been happy hunting ground for public sector banks for too long now. So far only 6.5% of the private banks’ branches are present in rural India compared to 32.7% of SBI and 31.7% of all nationalised banks. But with urban India reeling under the lingering impact of the global slowdown and the huge potential that the hinterlands offer, private banks are now clamouring to stake their claim. Market watchers say that 2012 will be marked by a mass exodus of private banks from urban to rural centres and success will depend on how fast they manage a wide footprint in these markets.

Private sector biggies like ICICI and HDFC have already diversified rapidly over the last two years and now the battle is for the rural markets. Experts say that the marketing war in 2012 will primarily be fought in the hinterlands and between next level banks such as Axis and IDBI. Both banks already have well thought out rural plans in place. Axis Bank for now has only 14 branches in rural India but aims to extend its footprint in tier III, IV and V centres with a population of 10,000 to 50,000 as a part of its rural banking strategy. Branches already dot Punjab, Tamil Nadu, Rajasthan and Gujarat and the bid is to launch 100 more branches across India over the remaining months of this financial year.

Scoring a one up against Axis, IDBI already has over 250 branches in semi-urban and rural centres. The bank has adopted over 150 villages under its financial inclusion plan and has opened hundreds of new savings bank accounts in rural markets over the last couple of years. IDBI’s marketers say that their ‘Grahak Sahayta Abhiyan’, where the bank goes and interacts with the customer, has been particularly rewarding in generating feedback and offering improvement tips to the bank for its rural foray on a regular basis.

The year has just begun, let’s wait and watch how Axis will play its cards to pip IDBI in the rural race.

SONY VS COLORS

So far as Hindi GECs are concerned, 2012 is going to be an important year, not because the market leader will get toppled, but because Sony and Colors may put a deeper dent in the viewership of well established players like Star Plus and ZEE. Despite Star Plus maintaining a lead throughout 2011, Sony and Colors have been giving nightmares to the competition. While Colors continued to thrive on established properties like Balika Vadhu along with reality show Big Boss, Sony did very well by repositioning Kaun Banega Crorepati. Koi Insaan Chota Nahi Hota celebrated the aspirations of the common man. Sony went on to weave soaps like Bade Ache Lagte Hain, based on consumer insights (that 90% Indians discover love post marriage), around the KBC proposition and came up with some winners in hand. The end of 2011 saw Sony intelligently launching 3-4 shows around the concept of parenting and fairy tales which has set the momentum for 2012.

A look at rating points in the last week of 2011 settles a lot of dust. Star Plus clung on to the #1 spot with 325 GRPs, Colors moved to #2 due to the warm reception of the first ‘Golden Petal Awards’. Sony followed at #3 with 240 GRPs. Disappointingly, ZEE TV lagged behind at a distant #4. Danish Khan, Vice President & Head of Marketing, Sony Entertainment Television explains the sudden and spectacular rise of Sony and Colors: “Consuming patterns change. Every half an hour you can’t just present the same wine in a new bottle.”

Couch potatoes can get ready for some titillating times ahead with Sony and Colors adding ample zing to the GEC party by not only heckling market leaders but also vying to undo each other in the overall GECstakes. Each has a plan to stay ahead of the curve in 2012. And innovation is the name of the game this season!

LG VS PANASONIC

Year 2011 was the year of tardy and below expectations growth for the entire durables fraternity. Bogged down by slump in demand and rising input costs, durable players had a tough time mixing & matching the price and demand matrix. To reach out to consumers battling high inflation, some players - notably LG and Panasonic - have refined their energy efficiency strategy for this year. For them, the brand blitzkrieg is set to revolve around the eco friendly plank. “There is huge demand for star rated products. It is a smart move which helps consumers manage the running cost of appliances,” says L. K. Gupta, CMO, LG India.

LG claims that 65% of its product-portfolio conforms to higher standards of energy efficiency, while Panasonic has specifically roped in Dia Mirza to promote its “Eco Idea” innovation, where it promotes clean energy future technologies, in its product range. Panasonic claims that its new range of split ACs are equipped with ECONAVI intelligent sensors that detects human location, activity level, and sunlight intensity in the room to save energy. Summer awaits a battle royale indeed!

THE BRAND BATTLE THAT WASN’T

It promised to be the mother of all brand wars in 2012 but fizzled out to be a major dud. The gloves were off, the concerned parties were perspiring with preparation, the battleground was ready and the audience was waiting with bated breadths... and then Anna Hazare fell ill.

Yes. Assembly Elections 2012 was the stage in which the high pitched war cry of Team Anna was to resound. Team Anna had declared that they would campaign against the Congress during the upcoming assembly polls in Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur for failing to pass the Lokpal Bill in the winter session. The news had obviously sent the craftiest brains in Team Congress into a huddle given the mass support to Anna’s anti-graft movement for most of 2011.

But the surprisingly thin turnout of supporters for Anna’s fast in Mumbai at the fag end of the year combined with Anna’s ill health (the Gandhian has been advised a month’s rest by his doctors and is presently recuperating in Ralegaon Siddhi away from the media glare) has taken the steam out of this brand battle even before it began. Anna now says he won’t campaign against the Congress party in the assembly elections and we are betting that Kiran Bedi and Arvind Kejriwal will not take up the cudgels without the Gandhian’s presence.

Here was a terrific opportunity for a new and upstart brand like Team Anna to embarrass a 125 year old brand like the Congress party. But it wasn’t meant to be. An opportunity lost, we say, to watch the political marketers slug it out with the cause sellers.
This article, published on January 12, 2013, predicts and analyzes several "Branding Blitzkriegs" or intense brand battles expected to unfold in the Indian market in 2012, moving beyond traditional rivalries like Coke vs. Pepsi. It highlights the shifting dynamics in various sectors, including automotive, two-wheelers, mobile phones, banking, and general entertainment channels (GECs).

Here's a breakdown of the predicted brand battles and relevant statistics from around the time the article was published:




Branding Blitzkriegs That Will Rock 2012 in India​



Overview:

January 2012 saw increased pressure on marketers in India as CEOs demanded better results by March 31st. The article noted a shift from traditional FMCG brand wars to close battles in fast-growing durables, electronics, automobile, financial services, and media markets. The year was characterized by "the old has given way to the new, albeit a little hesitatingly."




1. SUZUKI VS VOLKSWAGEN (Automobile)​



This battle emerged from a partnership gone sour between the Japanese and German auto giants. Volkswagen (VW) had acquired a 19.89% stake in Suzuki, aiming to leverage Suzuki's small-car expertise in emerging markets like India. However, Suzuki terminated the partnership due to alleged breach of contract.

  • Market Share (India, 2011):
    • Maruti Suzuki: 41.42%
    • Volkswagen (VW): 4.2% (Volkswagen Group's market share in India stood at 4.9% in 2011, up from 2.5% in 2010, selling a total of 111,623 units by Audi, Skoda and VW in 2011, a 109.3% increase over 2010.)
  • Sales Decline (Maruti Suzuki, April-December 2011): Sales declined by 16.5% to 684,892 units.
  • Sales Growth (VW, 2011): Deliveries to customers in India doubled to 111,600 units.
  • VW's 2018 Goal: Ulrich Hackenberg, Head - Technical Development, VW AG, aimed for a 10% market share by 2018.
  • Product Strategy: VW Polo competed with Suzuki Swift and Ritz, while Vento competed with SX4. VW planned to introduce small cars like Golf and UP. Suzuki, with seven small cars, was expanding into segments like premium Kizashi and Ertiga.



2. HERO VS HONDA (Two-wheeler)​



After a 27-year partnership, Hero Honda (now Hero MotoCorp) and Honda Motorcycle and Scooters India (HMSI) parted ways in 2010. Hero MotoCorp launched its new brand identity "Hum Mei Hai Hero" in August 2011, and Honda launched its India-specific identity "Sach Kar denge Sapne."

  • Market Share (India, as of early 2012):
    • Hero MotoCorp (formerly Hero Honda): Around 45% (Before the split in 2011, Hero Honda dominated the two-wheeler space with a 68.9% market share).
    • Honda Motorcycle and Scooters India (HMSI): Around 13%
  • Hero MotoCorp Sales (2011): Over six million units, making it the largest single vehicle manufacturer in the world.
  • Honda's Investment: HMSI had invested over Rs. 1,800 crore in India and planned to invest another Rs. 1,000 crore in 2012.
  • Product Strategy: Hero was introducing models like Impulse, Ignitor, and Passion Xpro. Honda unveiled seven new India-specific two-wheelers at Auto Expo 2012, including the 110cc Dream Yuga and sporty CBR 150R.



3. NOKIA VS SAMSUNG (Mobile Handsets)​



This global rivalry was intensely playing out on Indian turf, with Samsung challenging Nokia's long-standing dominance.

  • Market Share (India, January-November 2011 shipments):
    • Overall Mobile Handset Market:
      • Nokia: 30.7%
      • Samsung: 14.9%
      • Micromax: 5%
      • Total mobile handset shipments in India reached nearly 166 million units.
    • Smartphone Segment:
      • Nokia: 38.4%
      • Samsung: 27.5%
      • BlackBerry (RIM): 15.5%
      • Smartphone shipments during this period were approximately 10 million units.
  • Samsung's Strategy: Flooding the market with multiple smartphones across Windows, Android, and Bada platforms.
  • Nokia's Response: Launching Windows-based Lumia phones and publicly stating a target of 50% overall mobile market share in India by the end of 2012.



4. AXIS VS IDBI BANK (Financial Services, Rural Banking)​



With urban markets facing a global slowdown, private banks were increasingly targeting rural India, which had traditionally been dominated by public sector banks.

  • Branch Presence in Rural India (as of early 2012):
    • Private Banks (overall): 6.5% of their total branches.
    • SBI: 32.7% of its total branches.
    • All Nationalized Banks: 31.7% of their total branches.
  • Axis Bank's Rural Presence: Only 14 branches in rural India but aiming to launch 100 more branches across India in tier III, IV, and V centers.
  • IDBI Bank's Rural Presence: Over 250 branches in semi-urban and rural centers, having adopted over 150 villages under its financial inclusion plan.



5. SONY VS COLORS (Hindi General Entertainment Channels - GECs)​



While Star Plus remained the market leader, Sony and Colors were giving tough competition, aiming to dent the viewership of established players like Star Plus and Zee TV.

  • GRP (Gross Rating Points) (Last week of 2011):
    • Star Plus: 325 GRPs (retained #1 spot)
    • Colors: Moved to #2 (due to "Golden Petal Awards")
    • Sony: 240 GRPs (#3 spot)
    • ZEE TV: Lagged at #4



The Brand Battle That Wasn't: Team Anna vs. Congress Party (Political)​



This was anticipated to be a significant political "brand war" in the 2012 Assembly Elections across Uttar Pradesh, Uttarakhand, Punjab, Goa, and Manipur. Team Anna intended to campaign against the Congress for its failure to pass the Lokpal Bill. However, a thin turnout for Anna Hazare's fast in Mumbai and his subsequent ill health led to him withdrawing from campaigning, effectively dissolving this anticipated "blitzkrieg."
 
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