Challenger brand thought


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Challenger brand thought

  1. 1. The Makings of a Challenger Brand
  2. 2. Vision • Dominant player in a short span of time….
  3. 3. The bright side • Penetration is very low • Combined, the 7 circles are generating approx. 2.5 lakh new subscribers per month • The consumer is already sold on the desire / need to buy into the category
  4. 4. But there are some serious challenges ahead • Late entrant – 5th or 6th entrant in most of our circle • Lowering of Tariff, not an option • Churn – industry average is around 6 -7% per month – 8 – 9% for Pre-paid – Real reasons still unclear
  5. 5. Parity, Parity, Parity… • Almost a level playing field (from the consumers’ view point) when it comes to technology • Even customer service standards can be matched / bettered by committed competitors with deep pocket.
  6. 6. The Challenge Competing in a crowded market, as a late entrant, with complete product, technology, service and pricing parity… …And still being relevant and persuasive for consumers
  7. 7. Been there and done that!!
  8. 8. Divya Bhaskar
  9. 9. The environment • Innovative marketing strategies considered the domain of Large established English dailies…TOI/ Hindustan Times • Steps in Dainik Bhaskar, a vernacular publication group that redefined marketing in the publishing business
  10. 10. Divya Bhaskar • The Dainik Bhaskar group is the No. 1 Newspaper in the country (NRS 2003) • Circulation… – TOI : 22 L – HT : 5 L – DB : 23 L • Present in Rajasthan, MP, Chattisgarh, Chandigarh, Gujarat and Haryana Take a look at how they entered Gujarat…
  11. 11. The Bhaskar story • Gujarat market was dominated by 2 players – Sandesh (1923) – Gujarat Samachar (1932) – Divya Bhaskar launched in 2003
  12. 12. Challenger thinking • 1st Phase: Elaborate consumer contact program – 8 lakh households in Ahmedabad, out of a total base of 10 lakh HH • Objective: – Understand the kind of newspaper the consumers want
  13. 13. Challenger thinking • 2nd Phase: “Chali tumahri Marzi” prgram in 7.5 lakh HH – Consumers given the feeling of ‘ownership’ in the content development process – Bookings taken
  14. 14. Challenger thinking • Apart from the radical logistics of the marketing program itself, Divya Bhaskar continued to break the mould in various other ways too…. – Introduced a fresh magazine format layout – More colour and pages to accommodate responses from the consumers – Outdoor was used to huge extent –literally painted the town red – Commissioned immediate research through AC Nielson ORG Marg as an attestation of the circulation figures, kick starting the advertising revenues
  15. 15. No. 1, from day One (circulation) (Lakh HH) 12 10 8 6 4 2 0 Gujarat Samachar Sandesh Divya Bhaskar
  16. 16. What worked… • Big Bang launch • Customized the content • Broke the ‘we know best’ syndrome • Adopted the magazine subscription format
  17. 17. Jet Airways did it!
  18. 18. The environment • Till early 90’s IA had a monopoly • PSU orientation: – Delay in Schedules – Ticketing problems – Sloppy service
  19. 19. • 1993 : GOI opened skies for privatization – 8 new Airlines ( Jet Airways, Sahara, Modiluft, East West, NEPC…) • Today only 2 continue to function – Jet/Sahara
  20. 20. Challenger approach… • Specialists gave direction to the business : – IMRB / Anderson set up its business plan • Hired Top officials with national and international experience – AI, Malaysian, Singapore Airline • Computerized reservations from day 1 • More customer interface points… • Jet : 4000 employees for 33 planes • IA : 397 employees for 57 planes
  21. 21. Challenger approach… • Leased Aircrafts – though 40% more expensive – New Gen Aircrafts – Faster expansion, • Younger staff with friendly approach to attract customers • On time performance, Highly reliable • Pioneered the APEX rate concept in the country
  22. 22. What worked? • Neglected for decades, suddenly the Indian consumer was exposed to a truly world-class service experience, without the price premium • But above all, it was Jet’s ability to consistently sustain this up-graded service quality that made the difference. • Today they own the position of ‘best quality service’ in the domestic airline category
  23. 23. And now… • International Operations in UK, Singapore, Middle East. • Jet Airways. The spirit of new India. • Young. Smart. Dynamic
  24. 24. Cobra did it!
  25. 25. The atmosphere • Culture of beer drinking in the UK very different from that in India – Initially considered as a substitute to water – Now a passion – Given the status of wines/ Champaign etc. • Cobra (promoted by an Indian) enters the world’s most competitive beer market in 1989 • Takes on the might of… – Brands like ‘Carlsberg’, ‘Heineken’, Budweiser etc. – Local breweries
  26. 26. The trigger "The trouble with all the beers I tasted was that they left you gassy and bloated and with not enough room for your food.” Karan Billimoria • Cobra Beer is a “less gassy” premium Indian lager designed to perfectly compliment Indian cuisine.
  27. 27. And now… • The company has offices in London, USA, South Africa and India • Exported to more than 30 countries worldwide. • Compound annual growth rate of more than 43% in the last nine years. • Sold in 90% of the top Indian restaurants, as well as most major supermarkets
  28. 28. What worked… • Fresh approach to distribution • Sold the flavour of India to the Brit • Product innovation
  29. 29. Dominos - USA
  30. 30. The shift • Traditionally, pizzas are about… – Taste and aroma, crispiness etc. – The ambience at the outlet – Italian connection • Dominos came and changed the whole perspective… – Fast food is meant to be exactly that – FAST!!
  31. 31. Domino’s • Founded in 1960 with one store in Michigan, USA • 2nd largest chain in the US with players like Pizza Hut, Little Ceasers, Papa Johns and other small local players • Today they have 7400 outlets in 61 countries • In India they have 100 stores in 27 cities
  32. 32. Challenger thinking • Changed the industry paradigm. • The promise “Free pizza if not delivered in 30 minutes” • This promise created immense trust in the minds of the consumer for the brand. • Kings of Pizza Delivery had arrived!
  33. 33. Insight • People who haven’t done business with you before, don’t know you and therefore don’t trust you • A guarantee removes the risk element from the consumers purchase decision • Domino’s understood this well…
  34. 34. What worked… • Redefining the paradigm in the Pizza market • The guarantee itself • Commitment to the promise
  35. 35. All these success stories are of brands that have broken the mould, gone against-the-grain and redefined the parameters of success in their categories
  36. 36. The classical trap! • The second or third entrants in a category usually, believes that “If the leader has done it, than it must be right” – They study the brand leader and replicate the same strategy.
  37. 37. The classical trap! • Such an approach is doomed to failure… – Firstly, it is impossible to substitute/ replicate the relationship that a particular brand has with its consumer – will be seen as trying hard to connect – The more you copy the leader, the more he will gain
  38. 38. What Challengers do…
  39. 39. “I am going to upset the whole world.” Muhammad Ali, 1964
  40. 40. Think out of the box, continuously… • Ideas, ideas, ideas… – Challengers cant sit still…its plain death! Better ideas create competitive advantages. – Not only good ideas, but ideas that differentiate
  41. 41. Can do, will do mind-set… • Challenger brands are prepared to accept the marketing implications of the gap between “Ambition” and “Marketing Resource” – Is willing to behave in whatever way required to fulfill the ambition
  42. 42. Build stronger bonds with customer… • More emotional than just rational relationship, resulting in sustainable customer loyalty • Moreover, there should be intensity in all communications with consumers.
  43. 43. But, most importantly
  44. 44. Every stake holder of the brand must have a challenger mind-set
  45. 45. Some interesting examples of challenger thinking from our own category
  46. 46. Challenger thinking… • Airtel: – Follow-up on collections can be seen as rude and impersonal – Airtel has found a delightfully creative solution… – When the customer answers the reminder call from the service, he is greeted with a song which conveys to him that his bill payment is still pending
  47. 47. Challenger thinking… • Singtel: A Singapore based service provider with presence in more than 20 territories around the world • All service providers send mundane welcome messages to consumers crossing over to the network, Singtel identifies the nationality of the customer and sends him/ her the latest exchange rate of his currency into Singapore dollars
  48. 48. Challenger thinking… • Sunday, a Hong Kong based service provider. – Vision: To be the most innovative wireless communication company in the region – Mission: To always surpass and exceed consumers expectations, enriching & to their making a difference to their lives
  49. 49. Challenger thinking… • Corporate customers facility of pooling all employees talk-time together into corporate account – Thus heavy users will have the minutes they need by drawing on the un-used minutes of the low users
  50. 50. Challenger thinking… • Secretarial service – Operator to answer calls when you are not around • Temptation service – Adult content on the cell phone
  51. 51. Some more Challenger Ideas…
  52. 52. Naming the Challenger • Some challengers have made a huge impact through disruptive names – Virgin, Rado Mirchi, Spice Jet, Yes Bank etc. • In our category where there are names like… – BSNL, Airtel, Reliance, Tata Indicom • Can’t we break the mould with an absolutely young and memorable name??
  53. 53. Focus on Non-Voice • Why are VAS at a premium / super premium prices ? – Can we unleash the growth by tinkering the price points? – Costs of development are high, but can we play the volume game here?
  54. 54. Going very local • Localizing content will help us differentiate ourselves from the others. • Need to create specialized content for target audience. • Bhojpuri / folk music. Local festivals / VAS to coincide with religious festivals, etc.
  55. 55. Distribution • Industry norm is using the FMCG distribution for prepaid recharge & DSA/dealers for postpaid • Can we look at alternates that are cost efficient & have wider reach… – Post office – Peerless network of agents – LIC agent network
  56. 56. Churn Smoothen the change process to your network : – Pay for his Voicemail on earlier service (1 month) – Free sms of new number to all names in Phone book – Free “Call divert” from old service for 1 month
  57. 57. Tariffs • Cell penetration in these circles is very low, would it make sense to offer consumers limited period introductory offer of calls to landlines at 40 paise (to cover ADC charges)??
  58. 58. More… • Automatically adjusting the ‘0’ when roaming • Offer subscribers a back-up sim, incase his sim gets lost or damaged • Dedicated customer care service for high end consumers • Directory assistance – equivalent of a ‘yellow page service’ on the mobile phone