Tough times call for a hard look at branding strategies. Experts and companies believe a downturn is, in fact, the best time to create or revive a brand, going in for a makeover that involves some real change rather than spending money on routine advertising. The idea is to strengthen the brand so that it has a lead over competitors when the economy recovers.
Vikram Grover, Category head, beverages, HUL. Abhijit Bhatlekar / Mint
And some firms are attempting just this, through new campaigns, logos or a complete repositioning.
India’s largest consumer goods company by sales, Hindustan Unilever Ltd, or HUL, reworked the ingredients of its premium tea brand Lipton Yellow Label in March by focusing on theanine—an amino acid naturally present in tea. The exercise was aimed at repositioning the brand as a healthy beverage option. The repositioning was followed up by a new look, new logo and high- decibel marketing campaign.
“By doing this, we are certain we will be the choice of (the) new-age Indian and a significant success for the beverages category at HUL,” says Vikram Grover, category head, beverages, HUL.
Reckitt Benckiser (India) Ltd, the maker of the popular Dettol brand, recently sought to reintroduce itself through its initials “RB” written on a pink triangular kite placed alongside its full name. The new logo, created by the UK-based branding agency, The Workroom, is part of a global initiative to overhaul the corporate identity and help increase brand recall, according to the company.Vikram Grover
Category head, beverages, HUL
Last week, direct-to-home, or DTH, television service provider Dish TV India Ltd, an arm of Zee Entertainment Enterprises Ltd, repositioned its brand with a new tag line Sabse Jyaada and revamped the channel packages it offers into three tiers—silver, gold and platinum—by grouping the channels genre-wise. “We felt the need to differentiate ourselves from other service providers. In a multiplayer scenario, it is imperative to create a differentiated brand strategy,” says Salil Kapoor, chief operating officer, Dish TV. The company will spend Rs5-6 crore of its Rs100 crore marketing budget this year on the new initiative.
These initiatives come at a time when companies, big and small, are witnessing a sizeable drop in profits. Across sectors, plummeting revenues have forced companies to tighten belts and make substantial cuts in ad expenditure.
According to an annual media report, This Year, Next Year: India Media Forecasts, by GroupM, the media buying arm of marketing communications conglomerate WPP Group Plc., total ad expenditure in 2008 grew by 14.7% to touch Rs22,683 crore, against nearly 20% growth in 2007. Growth in ad expenditure in all media is expected to slow to 4.7% this year, with print and TV ad revenues especially taking a hit.