Jo Dikhta Hai Wo Bikta Hai

It fizzy and It Sucks ! ! !were the words of Varun after he had the first sip of the bottle.

How did Varun decide to buy Orangeon ?

Browsing through the store a unique bulb shaped bottle caught his attention.Varun was more excited about the new drink than the producers of the Drink . It was priced high compared to other drinks in the shelf at Rs 30 ,,later he realised it was made out of the orange peel, reluctant to abandon it Varun suggested everyone on his way for a sip and every one had the same reaction as of his...

In the refrigeration shelf of the store there were many drinks both national and regional brands battling for consumers attention. Strategically located where the drinks from the two Major brands Coke and Pepsi. But there were many regional brands out there which the retailer was selling, Brands which never heard of like Bindu jeera Masala soda, Rani,Sip on etc

Bindu Jeera Soda and Sip On are brands from the Shankar group. The group is into the beverage business and has mineral water,milk shakes,aerated drinks,and soda in its product line. Many in the campus have tried Bindu jeera soda. reasons are the unique name of the drink. The name is funny to many and jeera soda is a traditional drink Indian drink loved by many, Bindu is the first packaged jeera soda and the marketing wing of the group has done a smart thing, Instead of using traditional media like the mass media which many cola companies do, Bindu jeera soda is not advertised any where instead the company concentrated on the 3 P i,e PLACE (Distribution) they have a strong distribution network, they have flooded every shelf in the retail store and they are tapping the channel partners to sell these products. and if you think why will the retailer sell Bindu jeera soda, when he has brands like pepsi and coke which provide the refrigeration equipment and also manage regular stock.. The only reason is better Margin, huge cola brands cut on the retailers margin as their brands have a better pull (demand)from the customer. this is not the case with Bindu jeera soda as they are paid better.

The group has leveraged on the Bindu brand and has made extension into mineral water and other product. Distribution networks/ channel members are very important for a brand success as they influence the decision of the cosumer and research tells that 1/3 of the buying decision are made inside the store.hence most of the regional brands use this 'P' place to sell the products of the shelves and Bindu is such example of it.

Some thing which i could relate it to

Pricing Strategy For FMCG Products

Aliva the new snack from the stable of Frito-lay is being flooded at every retailer these days and being backed by Pepsi's strong distribution network is the added advantage, these packs are available at every retail outlet.For freshers frito-lay is the food and snack division of Pepsi-co which makes the popular snack kurkure and cheetos. both these brands have become a house hold name and have launched many new flavours.Aliva was launched after doing a thorough market research about consumer taste and the ingredients which should go into the product making it healthy,unlike kurkure which is accused of using plastic as an ingredient.

The product is a perfect blend of the Indian Namkeen and biscuits Its been positioned as a healthy snack,and made taking into consideration the palette of Indians, they have added all the spicy flavors in it. the detail which went in the packaging is also quite impressive they have used elements like sunrise in their logo which signifies the start of the day and to be eaten with tea/high tea as most of the snacks in India are consumed with tea.

It has been launched with a TVC and also being promoted heavily by retailers as most of the packs of aliva enjoy a better shelf space in the retail outlet. The only thing which might go wrong with Aliva is the pricing of the product. when price is been set up they have to consider the psychological factors into consideration. They have priced all the packs at 12 Rs unlike many other snacks in that segment which come in packs of 5, 10,20 these are standard industry prices among all the categories now a consumer will never think a product is not affordable to him if he has packs of 5, 10, & 20 and his choice of packs will be dictated by his hunger or requirement.brands like Lays have positioned packs on basis of the size like lays 20 Rs is positioned as party pack and pepsi launched few years with its 200 ml bottle as chota pepsi, that was a smart move as people could relate easily and accepted it. Now a price of 12 is in between 10 and 20 and a consumer who has limited money to spend(kids) and time would think that 12 is costly as it's above 10 and most of the time when exchanging money or transacting he has to either give the retailer the exact denomination or spend a long time to transact and get the change from retailer, to avoid this hassle he might buy a snack which is 10 Rs and he has been eating it in the past and has been satisfied with it.

With prices of raw material escalating companies are not willing to move away from the standard prices of 5, 10 and 20 instead reducing procuring cost of raw materials and also the sizes of the pack. The prices of 5 and 10 lie with in the consumer threshold(J.N.D) any price above 5 or 10 for the respective size is perceived as being priced high. hence companies never move out of this denominations even if the cost of manufacturing increase.

Aliva should have been launched in multiple packs as when ever the product is in the launch/introduction phase they should have sample packs of small quantity and lesser price. which dont hurt the consumer's wallet and induce him to try the product.

Branding of Reliance Jewels

Imagine you are buying an expensive jewelery, and given two choices either to buy it from Tanishq or Reliance jewel..where would you buy it from ???
For most of them the answer would be Tanishq and not Reliance jewels.. the reason for this could be the imagery which Tanishq has created for itselves through years.Jewellery being a product where testing and the chances of being cheated and manipulated being the highest, people prefer going to the most famous vendor in the town and they don't mind spending an extra buck for that.

You can validate this just ask your family members where do they buy their jewelery from ? they might buy it from the person who has been in the jewelery business for long or the store which is the most popular in the town and tanishq if given a chance. Now the Brand Tanishq was positioned as a premium luxury jewelery brand, supported by the strong brand equity of TATA's and people associate TATA's with trust.. hence tanishq leveraged the name of TATA's to gain equity of Trust..now that was a smart move.where as reliance is also trying to do the same but the fact, that Reliance is not a brand which is high on trustworthiness could hurt the positioning of Reliance jewels..lets understand the history of the brand Reliance.

Reliance industries known for its huge size and varying interest from petrochemicals to retail has expanded its footprint into the retail sector. with many sub-brands under it Reliance fresh,Reliance time out,Reliance footwear, Reliance jewels and many more and is on an expansion spree..Reliance as a brand is not associated with trustworthiness, people associate it with value for money, but not as a brand that's sincere where as TATA's as a brand rates high on the sincerity level. In branding there is a principle of prominence which states that the relative prominence of the brand element or elements determine which element or elements become the primary one and which become the secondary ones.Reliance uses a Equal dominance strategy where in both the parents(Reliance) brand name and the individual entity under it(jewels) have equal importance where as TATA's promoted Tanishq as a single entity.
Hence in the Reliance retail its the brand reliance which is prominent and hence become prominent where as tanishq was more prominent hence brand TATA became the secondary one. It would make more sense for Reliance to use a single entity branding(creating a new name) rather than going for mixed dominance as the Reliance brand would dominate the other identity.

Naming the grocery store as Reliance fresh is a smart move but not Reliance jewels, as jewelery is an high involvement purchase and people don't want to take risk..where as the consumer in a Reliance fresh outlet looks for value and as mentioned earlier brand Reliance stands for money. Reliance to be successful should slowly shed the name Reliance and find out a new name that stands for luxury/sincerity...
Mukesh Amabani are you Listening ???