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June, 2002 |
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Marketing |
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Lifan’s
Journey Holding rallies, stunt shows or expeditions are the best ways to promote a motorbike. That was what Yamaha YBX did a year ago with its Mechi-Mahakali drive. More recently, Royal Enfield held a rally before its relaunch in Kathmandu. And the most recent one is the Himalayan Expedition of Lifan, a motorcycle brand from China. Named “Chinese Lifan Motorcycle Himalayan Expedition-2002”, the campaign is expected to set a world record when a bike each of Lifan and Xinganjiao brand reach Parchamo Peak (6187 meter) in Rolwaling Himal. And the benefit expected are two: promotion of the two brands as power bikes, and promotion of Nepal as a destination for adventure tourism. Perhaps the most important mileage the brand received was in that the brand is now accepted as an authentic bike from China because the Chinese Ambassador himself was endorsing it so during the campaign now. He had done the same also during its launch about 10 months ago. And this is something the dealers of other Chinese bikes have not been able to do. But marketing experts doubt whether the campaign can generate the expected outcomes, because the expedition was, as they think, “premature”, at least for Nepal. It has been hardly 10 months since Lifan was first launched in Nepal and the necessary critical mass for such a campaign to deliver meaningful results has not been created. Perhaps also a few bikers from Nepal could have been made to participate in the expedition. And the record that such Nepali bikers could set would have generated more interest in Lifan from the Nepali riders. However, it can be seen that the real expectation of the campaign was in promoting the brand in China itself and other markets than in Nepal. That explains why the expedition also included Xinganjiao, a brand from Lifan that is meant exclusively for the Chinese market. Regarding the promotion of Nepal as an adventure destination, the results can be seen only in the future. As for now, it is seen that the expedition has not attracted the necessary attention from international media to generate such an impact. Or can this campaign and its results be publicised effectively in China to tempt the Chinese tourists to come to visit Nepal? If that happens, all the hotels and tour operators better start right now building up an impressive fleet of Lifan. Bumper
fridges
The same method that steel almirah makers used to sell their products in mid-eighties are now being emulated by refrigerator sellers. One has to deposit a certain amount with the fridge seller for a specified duration (usually one year plus or minus a couple of months depending upon the brand) and at the end he/she gets the fridge plus some prizes in between if he/she is lucky enough in drawing the lots. Initiated this time by Navin Distributors (the distributors of Whirpool) about a year ago, the scheme was later replicated by Eshita Trading (the dealer of Haier brand). Now Jaisawal Enterprises has started almost the same scheme for BPL and AB International too is doing the same for Allwyn fridges. Meanwhile, Navin Distributors has issued newspaper notice warning the consumers to be aware that the other companies have copied its scheme and therefore they are not behaving in an ethical manner. Ads of the Month Buland Cement from Jaypee of India is being
advertised vigorously over all the media in Nepal following the
product’s launch in the previous month. And the campaign offers yet
another example of how clumsy translations of Indian ads are being used
for the campaign in the Nepali market.
Created by Headstart (an Indian ad firm), the print ad of Buland features people in total Indian attire but donning a Nepali cap. That much could have been acceptable because the ads can be taken as targeted to Nepal's Terai area. But they cause irritation to the readers due to the clumsy Nepali text used in them which is beyond the comprehension of ordinary Nepali people because most of the words in the ad are never used in practice.
However, the campaign that is being carried out simultaneously over all the media seems to have created a noise that nobody is allowed to miss. The jingle also has become attractive because of the odd language used. The ad design however is very good creativitywise though it is focused more on the product than on the consumer. And the message of the ad is clearly mentioned. However looking at the expenses for the frequency of the ad, the company could have better spent a little more and prepared a creative with Nepali models and used a Nepali copywriter. Surya Tobacco’s ads are generally appreciated by marketing experts because, as it is believed, they are created after meticulous process of planning, testing and refining. But that does not seem to the case in the latest ad that is being used for newly launched Surya Lights, say marketing experts. As for the strengths and positive aspects of the creatives, the new ads present a continuity to the previous ads for Surya Luxury Kings. The “Inspired by Nepal” message is retained and the spot for the visual is the same glasshouse by the side of Fewa lake in Pokhara overlooking Mt. Machhapuchhre.
Moreover, as the new product stands for the youthful mentality, the model used is a younger person in a more casual dress up than in the ad for Surya Luxury Kings. On top of that, the new product ads use water scooter and paragliders - both representing the theme of “lights” and are more contemporary youth sports. “Paragliders are more suitable to the theme of lightness than the water scooter”, commented one marketing expert. The entire campaign is being supported also by a game - Treasure Hunt (see new launches column in this issue). And the launch itself was preceded by an advertorial in the newspapers as a teaser and announcing the launch of a light cigarette comparing it with Diet Coke.
Now about the shortcomings. The observers have a considerably long list of them. First, about the technicalities. The digitally added boat seems out of place. The boat is so near that it looks artificial. Second, about the color combination. The background would have been better in yellow than in blue. Incidentally, the ads for the same product on other media are using yellow. Finally, the ad could have been better had there been some text informing that it is a new product just launched. Two recent ad campaigns from the banking sector companies give fresh examples of how banking has been undergoing a change in recent years and how advertising is getting a new meaning in this industry. For almost all of the banks it seems advertising means only notices to be published in the newspapers or announcements over the radio or TV. But Standard Chartered Bank and Laxmi Bank have launched specifically designed and targeted ad campaigns recently. While the ads Stan Chart is using are focussed on "home loan" and "extra banking services" (its Kantipur branch is now 365 days open), newly operational Laxmi Bank has been using an abstract art image to go with its slogan “The only limit is your imagination” and to give an impression of a contemporary bank.
Since the target group for the Stan Chart ad seems to be the middle class, the ads would have been better had they been also in Nepali. Though the company also seems to have realised it, and the Nepali versions of the ad have also been coming out, they have appeared only in some inside pages of the newspapers while the English versions have appeared on the front page. Visually, the ad is very good. It has minimal body text and catches immediate attraction of the reader. "But the link with fate (by the use of palm-lime and birth chart) is not suitable for a bank, though it may be suitable for the roadside astrologers", notes a marketing expert.
The comparison table presented comparing stan-chart's offer with that of the other banks is good, as it is informative. But the comparison is only for Rs. 2.5 million loan. That may be because of the space constraint. But to mention that the home loan is available also of Rs. 500,000 is misleading. No one can buy a house for that amount. May be that amount is for repairs purpose. The conclusion is that the ad lacks clarity. The ad also lacks any call for action. A line such as "call us today" would have been better, opines one expert.
Regarding the Laxmi Bank ad, the critics say that it has made the message confusing by using an abstract art. “For a new company, the introductory ad must not be so vague”, suggests one. Another expert says, this ad does not fit Nepali consumers because of the use of an abstract art, though it may fit the western consumers. The other weakness in the ad is that even before the bank has come into operation, it has started making high claims. The World cup football has not generated the same level of activities from Nepali firms as there used to be in connection with similar sporting events in the past. Though some brands are being promoted on the world cup are the platform, they are all run-off-the-mill ads without any remarkable creativity used, opine marketing experts. Here is a review of some notable ads in this theme. Samsung TV has “penalty kick & win” scheme that very nicely uses the football flavour in the ads. But competitor LG has failed to create similar effect because of too much of matter cramped in a limited space. Though LG ad uses the world cup logo (which is missing in Samsung ad), the logo is not clearly shown by LG.
Daewoo, another brand of TV from Him Electronics (which also makes Samsung) has been using the opportunity also to oust Chinese TVs with its “Exchange” offer. While no other TV is focusing on the quality aspect of the product in the ongoing campaign, Daewoo seems to be the only exception. Does it mean that Nepali buyers are driven more by freebies than by quality? Among the other world cup related campaigns, two are from Nepal Lever Ltd., one for Pepsodent toothpaste and one for Lifebuoy soap. As to Pepsodent campaign, one market expert says that though the ad is targeted to under 16 year olds, that is not clear from the visual of the ad. That information appears in so small fonts making it unnoticeable that it looks like a statutory warning in a cigarette ad. Being targeted to kids, perhaps the selection of the medium (daily newspapers) is wrong because kids generally do not read daily newspapers. The shortcoming is addressed by running a TV ad simultaneously and by offering a prize also for the school of the child who wins the first prize. Regarding the Lifebuoy ad, the market experts praise it for its simplicity, single message focus and the strip design that seems perfect to catch the excitement of a goal being scored and the world cup being won. Claiming to be the number one seems to be an irresistible temptation of an advertiser in Nepal. The same is the case with Puja detergent soap. While the ad's claim that Puja is number one is not reliable, because the ad does not mention the basis for such a claim, similarly, the other claim of being 100% natural is not supported by any scientific finding. It is incomplete ad”, says one marketing expert, “if you have not seen this ad on TV, the one in print means nothing to you”. But if one has seen the TV ad, then the print ad is very good as a reminder.
As to the other positive aspects of the ad, one marketing expert says that with the local masses as the target group, this is a very good ad as it uses a celebrity (Jal Shah). Similarly, with the use of the word "Natural Fizz" confusing tactic is rightly used. This tactic is very much necessary in care of a detergent soap brand which has to compete with other brands that have almost similar ingredients but use equally confusing words and phrases. One advertisement campaign most widely visible during May 2002 was that of JOJO instant noodles offering a number of prize including motorbike and gold to employment and scholarship. Being distinct is a strength of the ad, point out marketing experts and also think that perhaps it has been effective in the particular target group. But that can be seen only after a suitable survey is carried out. However, creativitywise, the ad is described as "pathetic" and "funny" by the experts we contacted. "The illustrations are pathetic", said one, while the other wondered, "why did not the company offer brides and grooms or wedding expenses as well in prize?" New Launches Trishakti International Pvt. Ltd. has introduced in Nepal solar water heaters with Australian vacuum tube technology. The company claims that the product offers very high heat efficiency, occupies limited space and is of light weight. The Australian product’s nearest competitors at present are being imported from Taiwan. Available for all size, series and application such as domestic, commercial and industrial, the ISO 9002 certified product being marketed by Trishakti maintains a stagnant temperature at 27oC and has a life span of 25 years. Trishakti has been engaged in importing business for the last several years and is dealing mainly in solar water heaters, energy savers, safe lockers, electric bulbs and time recorders. Adisseo In Nepal Nimbus International Co. P. Ltd. has started making available in Nepal nutritional additives for the animals from ADISSEO of France. Formerly known as Rhone Poulnec and AVENTIS Animal Nutrition, Adisseo is a major player in the animal nutrition industry. It was officially created on 2nd April 2002 as an independent company, following the acquisition of Aventis’ animal nutrition activity by CVC Capital Partners Ltd., a leading European private equity investment company. “ADISSEO
Group is one of the world’s leading developers, manufacturers and
distributors of vitamins and methionine. Since its origins, the company
has remained faithful to its core animal nutrition business and has
constantly developed and perfected its product range”, says Nimbus in
a press release. ADISSEO operates throughout the world, the operational headquarters being located in Antony (France). The Group has four main manufacturing locations: Commentry and Les Roches-Roussillon (France), Burgos (Spain) and Institute (USA). ADISSEO develops, manufactures and distributes nutritional additives under the brand names Microvit™ (vitamins), Rhodimet™ (methionine), Smartamine™ (protected methionine for ruminants) and Rovabio™ (enzymes).ADISSEO Group has an annual turnover of over €607 M. Nimbus is originally a marketing company engaged in FMCG. It recently entered into poultry feed and medicines business by setting up Pro-biotek as a feed manufacturing unit and Nimbus International as a specialized marketing unit for poultry industry. Suzuki’s
Luxury Vehicles
Arun Intercontinental Traders have finally launched three new models of luxury vehicles from Suzuki-Liana, Grand Vitara and Grand Vitara XL-7 after running a several month long pre launch advertisement campaign. Described as the ‘biggest’, ‘small’, ‘compact’, ‘car’ Liana is available in both Sedan and Hatchback and is priced nearly Rs. 2.2 million. Grand Vitara is a 4 x 4 Sport Utility Vehicle (SUV) available in both three and five door version. Leading the series is Grand Vitara XL-7 with seven seats presenting itself also as a family vehicle. Grand Vitara 5-doors is priced Rs. 3.55 million. Suzuki’s new product in Nepal have to compete mainly with the same category but higher priced Toyota, Mitsubishi and Honda which also have the established image in luxury car segment. However only Toyota and Mitsubishi have the advantage of longer presence in this market than that of Suzuki. Honda cars were launched here only recently. Surya Lights Surya Tobacco Company (P) Ltd (STC) has launched Surya Lights, the first product in lights segment from a cigarette company in Nepal. The launch in early May is to be followed by a treasure hunt contest on June 15. The company describes the brand as “crafted to the most premium of international standards” and notes its vignetted pack, unique taste signature and micro laser ventilated cigarettes as the special features. Designed very elegantly and thus also expected to pass as a fashion accessory, the product is priced at Rs. 49 per pack of 20s and Rs. 24.50 per pack of 10s, positioning it at the level with Surya Luxury Kings which, as STC’s Brand Manager Karunesh Bajaj claims, has 90% of the share in this segment. The market for Surya Lights will be equal to 10% of Surya Luxury Kings within a year, adds Bajaj. The product is available now only in select outlets in Kathmandu, and the company plans to take it to other places gradually. The treasure hunt contest is to have lucky 100 participants selected through a special method. They will be divided into four groups of 25 each and sent around the city on their vehicles with a map each to hunt for clues. The one who solves the maximum number of clues in the shortest period of time is to be selected the winner of two free tickets to Singapore. The other winners will get 29” TV/DVD players, Tissot watches or mobile phones. The advertisement campaign for the new product retains the ‘Inspired by Nepal’ theme used in Surya Luxury Kings, but with some adaptations to include a more contemporary look (see Ads of the Month). Rearrival of Enfield Agni Incorporated and Himalayan Enfielders have relaunched in Nepal the power and leisure bikes from Royal Enfield Motors of India (now a unit of Eicher Ltd.) after a gap of nearly eight years.
The launching ceremony amidst the Nepali band 1974 AD playing at Hyatt Regency Hotel was a gala evening in which all types of formal attires were strictly prohibited emphasizing on the “leisure bike” image of Enfields. That was followed a couple of weeks later by sponsoring a public live concert by 1974 AD itself. Preceding the launch was a rally of Royal Enfields emphasizing on the power aspect of the bikes. Now available in Nepal are Bullet Standard, Bullet Electra and Bullet Machisma with 350 cc engine capacity as well as Bullet 500 cc and the Lightning 535 cc. While Eicher’s distributor Agni Incorporated is the official importer/distributor also of the Enfield in Nepal, Himalayan Enfielders, a group of Royal Enfield motorcycle enthusiasts, are the authorised dealers. The bikes are being made available in Kathmandu and Pokhara at present. Explaining the eight year absence from
Nepal, Siddhartha Lal, chief executive of Royal Enfield blamed the
earlier import duty structure of Nepal based on engine capacity which
subjected 350 cc and more powerful bikes to 2.5 times higher tariff than
that applicable on 100-150 cc bikes. The revision in the duty structure
to a flat 40% ad valorem has made it possible for Royal Enfield to be
competitive here again, said Lal. Jo Jo
the Chow - Chow
After over a year of contemplation on the idea, Pokhara Noodles (P) Ltd, has launched a new brand - JoJo. The product launch is being backed up by an extensive advertisement compaign emphasizing on a scheme that offers scholarship, jobs, motorcycles, gold and hundreds of thousands in cash. Though the product launch and the accompanying campaign do not seem lavish, the noise created with this much of campaign is quite impressive. |
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