Description
Its all abt segmenting product and promoting the product case study
Sofio Soap
Anil Mahajan absent-mindedly ran his finger over the cake of soap before him. He traced the name 'Sofio' embossed on the soap as he inhaled its unmistakable sesame fragrance. It was a small soap, almost like a bar of gold. There were no frills, no coloured packaging and no fancy shape. Just a golden glow and the fragrance of sesame and Lucida font that quietly stated 'Sofio'. Mahajan smiled wanly and clasped the soap in his hands as if protecting it from an unseen predator. He was wondering with quiet concern if the 30-year-old brand would last long. Zeni India, where Mahajan was marketing manager, was taking a long, hard look at the soap as it was proving to be a strain on resources. There were varying stories about how Sofia was launched. Some said the brand was a 'gift' from the departing English parent company. Others claimed that it was created fair: the then chairman's British wife as the Indian climate did not agree with her skin. They' also claimed that the copy "The honest soap that loves your skin" was also coined by the lady. The line had stuck through three decades. Only the visuals had changed, with newer models replacing the older ones. Zeni was basically a specialty products company producing household hygiene, fabricare and dental care products. Sofio was the only soap in its product mix, produced and marketed by Zeni. Its reliable quality and value delivery had earned it a lot of respect in the market. Sofio's equity was such that Zeni was known as the Sofio company. Indeed, the brand name Sofio denoted purity, reliability and gentle skincare. In 1994, Zeni UK increased its stake in the Indian subsidiary to 51 %. Within months, all of Zeni's products were given a face-lift, thanks to the inflow of foreign capital. New packaging, new fragrances, new formulations and more variants were introduced. Only Sofio was left untouched. For, although it had a growing skincare business following some strategic acquisitions in Europe in the early eighties, Zeni UK was not a soap company. The IJK marketing team ran an audit of every brand and product in the company's portfolio. But when it came to Sofia, it faltered. "We don't know this one," officials at the parent company said. "We don't want this one to be touched," Mahajan had said protectively, a sentiment that was endorsed by the Managing Director, Rajan Sharma. "Sofio is too sacred, we will leave it as it is," he said. But the UK marketing team was confounded. What was a lone soap doing in the midst of toilet cleaners and fabric protectors, they wondered? However, they somehow agreed that their proposed revamp strategy would only look at up gradation, not tinkering with what wasn't broken. Indeed, for 30 long years no one had tampered with the Sofia brand. And Mahajan felt there was no reason to start now. Sofia, in his view, was a selfsustaining brand. I hat was a bit of an understatement because advertising for the
Page 1 of 4
brand was moderate and Zeni India had never used any promotional gimmick for it. Now, after four years of nurturing the other categories, Zeni UK had decided to launch its Vio range of skincare products in, India. But Sofio's presence and profile were a major roadblock to Vio's success. "It will create dissonance, confuse our skincare equity and deter the articulation of Vio's credo. It will stand out as a genetic flow," argued the UK marketing head. "You need to do a rethink on Sofia. Ideally, we should just close it down." Mahajan protested. "Why? It has such a strong equity and loyal following. So much has been invested in it all these years. Why give up all that?" Rajan, however, had another idea. "Let us then extend the Sofio brand," he said. It was the simplest solution. Companies were now investing heavily in creating new equities for their brands. But in Sofia's case, Zeni was already sitting on a brand with a terrific equity. He felt that extending this equity to other categories, such as skincare products, would be successful. But Sofia needed a new positioning before it could be extended. Till a few years ago, it had been in premium category, priced at Rs 15. Then new brands with specific positioning and higher price tags entered the market. This created a level above Rs 15 soaps and pushed Sofio down to the mid-priced range. So Sofio's price was not commensurate with its premium position and image. Over the years, Sofio had become so sacred that Zeni, India had been too scared to do anything to it. As a result, the soap was left with niche category of loyal users. This category neither shrank nor increased, just kept getting older and older and with it the brand also kept growing older. For example, when Mahajan's wife had her first baby at 25, her mother had recommended Sofio for her dry skin and also for the baby's tender skin because IT contained sesame oil. That was in '1979. Today, Mahajan's daughter had turned 21 an„ as being wooed by Dove, Camay, even Santoor and Lifebuoy Gold, with their aggressive advertising. Sofio had begun to lose its image of being contemporary as newer brands came in newer values. Today, at 46, Mahajan's wife still used Sofio, but when she recommended Sofio to her daughter, she said, "But Sofio is a soap for mothers, for older people." That was a major problem, The Sofia brand had aged and Zeni India hadn't even been aware of it. While its equity had grown with its users, its personality had aged considerably in the last 30 years. "I don't think you can keep the personality young, unless you keep renewing the brand. The objective now is to widen your equity so that your image becomes young," continued Rajan. "For instance, if today you were to personify a Sofio user, it would be a woman of 45 years using the same brand for many years, who is averse to experimenting, very skincare conscious, very trusting and very one-dimensional. As you can see, this is not a very competitive personality. These are the strengths of our Sofia, but these are also its weaknesses," he analysed. The context had changed. Today, youth demanded brands that stood for freedom and fearlessness. They demanded bold brands that dared to cure, not just preserve. "Preservation is for old people. Those are the attributes being presented in evolved markets," said Rajan. To make Sofio contemporary, the attributes had to be re-framed, he felt. "You can't make a young brand trusting, caring, loving,
Page 2 of 4
without adding other attributes to it. Today, youth stands for freedom, for laughter, for frankness, for forthrightness. That's what Close Up, Lifebuoy Gold, Vatika and other brands propagate. So, either come clean and say it is for older skin which needs trust and kindness, or reposition the brand," said Rajan. Repositioning was also necessary to address another anomaly in Sofia's image: its perceived premium. Zeni India had been unable to do anything about Sofio slipping into the mid-price range following the entry of more expensive brands. Now, as Rajan mulled over the brand extension plan, Mahajan felt that Sofia's premium positioning was its core equity and that had to be maintained. "If you are premium priced in the consumer's mind, your extensions are automatically perceived as premium. So, if you don't present the other products as premium, the consumer will not see them as extensions of the brand," he said. "For example, if you are to launch a shampoo which is priced lower than sunsilk, but higher than Nyle and Ayur, then whatever the rationale, the consumer will not accept your product. 'It is not the Sofio I know,' will be the feeling," he said. Mahajan felt that since premium positioning was one of Sofio's equity values, it would be very difficult to convince consumers that the brand was being extended without hanging on to this particular value. "Will they buy your rationale that the very same values and equity would now be available at a low price? To be in the premium segment now, you have to price it at Rs 35 or 40, almost at par with Dove," he said. “With Dove retailing at Rs 45, Sofio will be perceived as a cheaper option." "We can't simply raise the price," said Rajan. "What are we offering for that increase? You can't add value because you don't want to tamper with the brand. The consumers will then ask, Sofio used to be so cheap, what has happened now?' The user will forget that 15 years ago, Rs10 was expensive, because all her comparisons would be in today's context," said Rajan. "So what's the option?" asked Mahajan. "You don't have to be expensive to be premium," said Rajan. "Sofio already has the image of a premium brand, thanks to its time-tested core values of purity, credibility and reliability. What we can do is reinforce the premium through communication and positioning, In fact, we should have tinkered with Sofio long ago. That is what HLL did with Lux. It also launched a bridge brand, Lux International, in the premium category," said Rajan. "How could we have done anything to the brand?" asked Mahajan. "The product had such a strong following. It stood for gold, for sesame oil, for its subtle earthy perfume. We changed the packaging periodically, but 'hat's all we could do. Remember the time we brought out a transparent green Sofia the fragrance of lime? It bombed in the market." Rajan was not in favour of the premium .)positioning. It appeared very short-sighted to him given the bigger plan to extend the brand. "Where are the volumes in the premium segment?" He asked. "For some reason, every manufacturer feels that skincare can be an indulgence of only the moneyed class. As a result, there is a crowd in the premium end of the market. Do we want to be yet another player in
Page 3 of 4
the segment?" Fifteen years ago, Sofio was perceived as a premium product. But today, global brands like Revlon, Coty and Oriflame were delivering specific premium platforms. Sofio did not have a global equity. "Let us revisit the brand, examine what it stood for 15 years ago and examine the relevance of those attributes in today's context,''' suggested Rajan. "Sofio stood for care, consciousness, love, quality and all that. But today, are these enough to justify a premium position?" he asked Mahajan. "These attributes are viable in the mid-priced segment," he said. "The mid-priced brand is the proverbial washerman's dog," said Mahajan. "You don't know whether you are at the bottom end of the premium range or at the top end of the low priced range. You end up creating an image of being on the opportunity fence. It is a mere pricing ploy, with no strategic value." Rajan could understand Mahajan's fears. Some brands in a similar dilemma had managed to redefine their equity. For instance, HLL created a low priced variant of Rin without incurring much dilution to the washing bar's equity. Rin was always perceived as a premium, high quality product that gave superior washing results. It was always several notches above Nirma. Rin was intended to be a stepping stone for users to convert to Surf, a premium brand of HLL. Nirma users were people who upgraded from laundry soaps and were looking for a basic clean wash. Nirma stood for a different kind of personality - cheap, harsh, but effective. Rin, on the other hand, was sophisticated, gentle, effective and expensive. Mahajan and Rajan were faced with many critical decisions. It was, however, decided that as a first step, with appropriate changes in the formulations, an entry level Sofio Care, a medium-priced Sofio Glow and a high-end Sofio Plus would be launched. QUESTIONS I . Discuss the segments profiles. 2 Suggest an appropriate position 3. What media and copy strategies would you recommend? 4. Suggest a sales promotion design for Sofio.
Page 4 of 4
doc_162207966.doc
Its all abt segmenting product and promoting the product case study
Sofio Soap
Anil Mahajan absent-mindedly ran his finger over the cake of soap before him. He traced the name 'Sofio' embossed on the soap as he inhaled its unmistakable sesame fragrance. It was a small soap, almost like a bar of gold. There were no frills, no coloured packaging and no fancy shape. Just a golden glow and the fragrance of sesame and Lucida font that quietly stated 'Sofio'. Mahajan smiled wanly and clasped the soap in his hands as if protecting it from an unseen predator. He was wondering with quiet concern if the 30-year-old brand would last long. Zeni India, where Mahajan was marketing manager, was taking a long, hard look at the soap as it was proving to be a strain on resources. There were varying stories about how Sofia was launched. Some said the brand was a 'gift' from the departing English parent company. Others claimed that it was created fair: the then chairman's British wife as the Indian climate did not agree with her skin. They' also claimed that the copy "The honest soap that loves your skin" was also coined by the lady. The line had stuck through three decades. Only the visuals had changed, with newer models replacing the older ones. Zeni was basically a specialty products company producing household hygiene, fabricare and dental care products. Sofio was the only soap in its product mix, produced and marketed by Zeni. Its reliable quality and value delivery had earned it a lot of respect in the market. Sofio's equity was such that Zeni was known as the Sofio company. Indeed, the brand name Sofio denoted purity, reliability and gentle skincare. In 1994, Zeni UK increased its stake in the Indian subsidiary to 51 %. Within months, all of Zeni's products were given a face-lift, thanks to the inflow of foreign capital. New packaging, new fragrances, new formulations and more variants were introduced. Only Sofio was left untouched. For, although it had a growing skincare business following some strategic acquisitions in Europe in the early eighties, Zeni UK was not a soap company. The IJK marketing team ran an audit of every brand and product in the company's portfolio. But when it came to Sofia, it faltered. "We don't know this one," officials at the parent company said. "We don't want this one to be touched," Mahajan had said protectively, a sentiment that was endorsed by the Managing Director, Rajan Sharma. "Sofio is too sacred, we will leave it as it is," he said. But the UK marketing team was confounded. What was a lone soap doing in the midst of toilet cleaners and fabric protectors, they wondered? However, they somehow agreed that their proposed revamp strategy would only look at up gradation, not tinkering with what wasn't broken. Indeed, for 30 long years no one had tampered with the Sofia brand. And Mahajan felt there was no reason to start now. Sofia, in his view, was a selfsustaining brand. I hat was a bit of an understatement because advertising for the
Page 1 of 4
brand was moderate and Zeni India had never used any promotional gimmick for it. Now, after four years of nurturing the other categories, Zeni UK had decided to launch its Vio range of skincare products in, India. But Sofio's presence and profile were a major roadblock to Vio's success. "It will create dissonance, confuse our skincare equity and deter the articulation of Vio's credo. It will stand out as a genetic flow," argued the UK marketing head. "You need to do a rethink on Sofia. Ideally, we should just close it down." Mahajan protested. "Why? It has such a strong equity and loyal following. So much has been invested in it all these years. Why give up all that?" Rajan, however, had another idea. "Let us then extend the Sofio brand," he said. It was the simplest solution. Companies were now investing heavily in creating new equities for their brands. But in Sofia's case, Zeni was already sitting on a brand with a terrific equity. He felt that extending this equity to other categories, such as skincare products, would be successful. But Sofia needed a new positioning before it could be extended. Till a few years ago, it had been in premium category, priced at Rs 15. Then new brands with specific positioning and higher price tags entered the market. This created a level above Rs 15 soaps and pushed Sofio down to the mid-priced range. So Sofio's price was not commensurate with its premium position and image. Over the years, Sofio had become so sacred that Zeni, India had been too scared to do anything to it. As a result, the soap was left with niche category of loyal users. This category neither shrank nor increased, just kept getting older and older and with it the brand also kept growing older. For example, when Mahajan's wife had her first baby at 25, her mother had recommended Sofio for her dry skin and also for the baby's tender skin because IT contained sesame oil. That was in '1979. Today, Mahajan's daughter had turned 21 an„ as being wooed by Dove, Camay, even Santoor and Lifebuoy Gold, with their aggressive advertising. Sofio had begun to lose its image of being contemporary as newer brands came in newer values. Today, at 46, Mahajan's wife still used Sofio, but when she recommended Sofio to her daughter, she said, "But Sofio is a soap for mothers, for older people." That was a major problem, The Sofia brand had aged and Zeni India hadn't even been aware of it. While its equity had grown with its users, its personality had aged considerably in the last 30 years. "I don't think you can keep the personality young, unless you keep renewing the brand. The objective now is to widen your equity so that your image becomes young," continued Rajan. "For instance, if today you were to personify a Sofio user, it would be a woman of 45 years using the same brand for many years, who is averse to experimenting, very skincare conscious, very trusting and very one-dimensional. As you can see, this is not a very competitive personality. These are the strengths of our Sofia, but these are also its weaknesses," he analysed. The context had changed. Today, youth demanded brands that stood for freedom and fearlessness. They demanded bold brands that dared to cure, not just preserve. "Preservation is for old people. Those are the attributes being presented in evolved markets," said Rajan. To make Sofio contemporary, the attributes had to be re-framed, he felt. "You can't make a young brand trusting, caring, loving,
Page 2 of 4
without adding other attributes to it. Today, youth stands for freedom, for laughter, for frankness, for forthrightness. That's what Close Up, Lifebuoy Gold, Vatika and other brands propagate. So, either come clean and say it is for older skin which needs trust and kindness, or reposition the brand," said Rajan. Repositioning was also necessary to address another anomaly in Sofia's image: its perceived premium. Zeni India had been unable to do anything about Sofio slipping into the mid-price range following the entry of more expensive brands. Now, as Rajan mulled over the brand extension plan, Mahajan felt that Sofia's premium positioning was its core equity and that had to be maintained. "If you are premium priced in the consumer's mind, your extensions are automatically perceived as premium. So, if you don't present the other products as premium, the consumer will not see them as extensions of the brand," he said. "For example, if you are to launch a shampoo which is priced lower than sunsilk, but higher than Nyle and Ayur, then whatever the rationale, the consumer will not accept your product. 'It is not the Sofio I know,' will be the feeling," he said. Mahajan felt that since premium positioning was one of Sofio's equity values, it would be very difficult to convince consumers that the brand was being extended without hanging on to this particular value. "Will they buy your rationale that the very same values and equity would now be available at a low price? To be in the premium segment now, you have to price it at Rs 35 or 40, almost at par with Dove," he said. “With Dove retailing at Rs 45, Sofio will be perceived as a cheaper option." "We can't simply raise the price," said Rajan. "What are we offering for that increase? You can't add value because you don't want to tamper with the brand. The consumers will then ask, Sofio used to be so cheap, what has happened now?' The user will forget that 15 years ago, Rs10 was expensive, because all her comparisons would be in today's context," said Rajan. "So what's the option?" asked Mahajan. "You don't have to be expensive to be premium," said Rajan. "Sofio already has the image of a premium brand, thanks to its time-tested core values of purity, credibility and reliability. What we can do is reinforce the premium through communication and positioning, In fact, we should have tinkered with Sofio long ago. That is what HLL did with Lux. It also launched a bridge brand, Lux International, in the premium category," said Rajan. "How could we have done anything to the brand?" asked Mahajan. "The product had such a strong following. It stood for gold, for sesame oil, for its subtle earthy perfume. We changed the packaging periodically, but 'hat's all we could do. Remember the time we brought out a transparent green Sofia the fragrance of lime? It bombed in the market." Rajan was not in favour of the premium .)positioning. It appeared very short-sighted to him given the bigger plan to extend the brand. "Where are the volumes in the premium segment?" He asked. "For some reason, every manufacturer feels that skincare can be an indulgence of only the moneyed class. As a result, there is a crowd in the premium end of the market. Do we want to be yet another player in
Page 3 of 4
the segment?" Fifteen years ago, Sofio was perceived as a premium product. But today, global brands like Revlon, Coty and Oriflame were delivering specific premium platforms. Sofio did not have a global equity. "Let us revisit the brand, examine what it stood for 15 years ago and examine the relevance of those attributes in today's context,''' suggested Rajan. "Sofio stood for care, consciousness, love, quality and all that. But today, are these enough to justify a premium position?" he asked Mahajan. "These attributes are viable in the mid-priced segment," he said. "The mid-priced brand is the proverbial washerman's dog," said Mahajan. "You don't know whether you are at the bottom end of the premium range or at the top end of the low priced range. You end up creating an image of being on the opportunity fence. It is a mere pricing ploy, with no strategic value." Rajan could understand Mahajan's fears. Some brands in a similar dilemma had managed to redefine their equity. For instance, HLL created a low priced variant of Rin without incurring much dilution to the washing bar's equity. Rin was always perceived as a premium, high quality product that gave superior washing results. It was always several notches above Nirma. Rin was intended to be a stepping stone for users to convert to Surf, a premium brand of HLL. Nirma users were people who upgraded from laundry soaps and were looking for a basic clean wash. Nirma stood for a different kind of personality - cheap, harsh, but effective. Rin, on the other hand, was sophisticated, gentle, effective and expensive. Mahajan and Rajan were faced with many critical decisions. It was, however, decided that as a first step, with appropriate changes in the formulations, an entry level Sofio Care, a medium-priced Sofio Glow and a high-end Sofio Plus would be launched. QUESTIONS I . Discuss the segments profiles. 2 Suggest an appropriate position 3. What media and copy strategies would you recommend? 4. Suggest a sales promotion design for Sofio.
Page 4 of 4
doc_162207966.doc