Brand Update : Cadbury Eclairs Moves Up the Value Chain

2011 was an eventful year for Cadbury's Eclairs. The year saw the brand trying to move up the value chain by launching a new variant Cadbury Rich Brownie Eclairs. The move is significant because the brand has done an upward line stretch since the new variant is priced at Rs 2/-.

Cadbury's Rich Brownie variant is a significant move in the Rs 950 crore candy market where the most popular price point is Rs 1/- and  50 paise. The marketers were reeling under margin pressure because of a rise in the input costs at one hand and the price sensitive consumers at the other end. The problem was aggravated by the price competition from Nestle and local brands. Cadbury's still hold market leadership in value terms in this market while losing out the volume leadership to Nestle.

2011 also saw some changes in the positioning of Cadbury's Eclairs. The brand which earlier had the positioning of Doob le Zara ( which meant- immerse in taste) changed the tagline to "Get Lost".

Watch the ad here : Get Lost 
Cadbury's launched the Rich variant with the positioning of Chocolate Fountain. The brand adapted this from the earlier campaigns of Cadbury's Dairy Milk Eclairs' Chocolate Bomb ads. Instead of the heads exploding as bombs, in the Rich variant's ads, the heads explodes into fountains.

Watch the ad here : Cadbury's Rich Eclairs

Since the brand is priced high, the target market for this variant is older customers- the teens and youngsters.

While the new variant is banking on the chocolate fountain, the original Cadbury's Eclairs is experimenting with the " Lost in Taste " proposition. The creative brains finally came up with the tagline " Get Lost". For the first time , a brand is telling the customers to " Get Lost ".  May be the creative guys told the client  to " Get Lost " and client mistook it for the tagline and approved it !
The new tagline is far below the average creative standards for the reason that another brand from the same company i.e 5 Star is having the same positioning. It is common sense that it is not advisable for two brands from the same company to have same positioning. Positioning has to be unique and should not be shared unless it is a branded house. The entire campaign has a negative tone coupled with the tagline which itself is negative.
According to newsreports, the Rich Brownie variant wants to create a space for itself in the market which will convince the customer to pay higher price for the new variant.
Although nobody will have any doubts regarding the quality of these products, the campaigns for these two variants does not match the brand's real worth. Cadbury's have always known for its breakthrough campaigns. The recent ads for Silk, Shots , CDM all were of high quality creative executions. However, the ads for the eclairs does not match the standards of its siblings. What difference is there between the Chocolate Bomb and Chocolate Fountain  ? What difference is there between 5 Star and Get Lost campaigns ? Rather these come across as lazy cut-copy works.

Related Brand
Cadbury Eclairs

Brand Update : Horlicks Extends to Breakfast Segment

In pursuit of the stated objective of making Horlicks a megabrand, GSK announced the launch of Horlicks Oats. According to ET, packaged, ready-to-cook oats market is worth around Rs 200 crore and growing at 25% . Horlicks expects to leverage its equity in the new product category also.

From healthy malt drink, Horlicks has come a long way. Now  the brand has become so big and diversified, there is no point in criticizing these extension. ( one can only pray for its survival).

Regarding the brand extension towards oats, the existing health based brand association of Horlicks will be a huge advantage . According to academic researches, consumers evaluate brand extension on the basis of these parameters - 

Brand loyalty towards parent brand

Confidence of consumers about the competence of parent brand in the new category

Perceived quality 

Positive brand associations 

Perceived fit between parent brand and the extensions

Attitude of consumers towards the brand.

For Horlicks, because of its rich heritage and product performance, it scores well in most of the above parameters. Hence the chances of consumer trial will be high compared to any new brand.Brand dilution will happen for sure since the brand is trying to leverage its expertise in too many categories. 

There are also chances of the oats to be viewed as a Kid's product since Horlicks in India traditionally targeted kids. This kid's association may prevent many adults to switch to the brand. However Horlicks will be addressing this issue in the launch ad. My feeling is that Horlicks oats will be targeting the family as a unit rather than adults.

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Horlicks becomes megabrand

Brand Update : Havells Ventures into Small Appliances

Havells brand which made everyone look up with its clutter-breaking  " Shock Laga " ad has diversified into small appliances. Indian small appliances market is worth around Rs 5000 crore with premium segment contributing around Rs 1000 crore ( Source : Business Standard)

Havells is now running its commercials announcing the launch of the domestic appliances. By the theme of the ads, it is assumed that the foray is targeting the premium segment. Indian domestic appliances market is highly fragmented and intensely competitive. Brands like Philips, Bajaj  etc dominates the market. There are also local brands which have powerful equity in certain product-lines. Havells have already marked its presence in fans and water heater product categories.

Havells would be hoping that it can leverage the equity of its electrical products into the new product range. This time also , there is no specific brand value or USP that Havells is trying to project although subtly the ads try to position the brand as futuristic or technologically superior. In some ads, Havells is displaying the tagline " Future Ready " implying the futuristic technology that its product has. Having said that , the ads are able to convey the premiumness of the brand quite effectively.

I still see the absence of a corporate tagline for Havells as one of its major branding mistake. Since the brand is trying to be an umbrella brand endorsing products across categories, it is important to create a positioning platform for the corporate brand. Hope that the brand will get serious about its parent brand's positioning.

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Havells- Shock Laga Kya