Case Study 1: Thums up is possibly Indias most resilient iconic brand.

While legions of companies pump large sums of money into their brands in the hope that they attain icon status, Thums Up has done so with minimal fanfare. Launched by the Chauhan brothers Ramesh and Prakash in order to fill the gap that Coca-Cola left when it exited India in 1977, Thums Up introduced a bold new flavour that Indian customers instantly took to. We first tried variants that tasted like Pepsi and Coke, then launched our version with an orange base and more fizz, says Ramesh Chauhan. Apparently, colas have a base fruit flavour in the concentrate. Pepsi and Coke are, according to Chauhan, lemon-based. In our minds we had an image of a man with an eye-patch. We wanted a different taste that would be the hook and the differentiator for our brand, he adds. The stronger, fizzier carbonated beverage has ruled the ruthlessly contested cola category for much of its existence. At first, Thums Up faced-off against local competitors such as Campa Cola, Double Seven, Dukes McDowells Crush and Double Cola, amongst others. When the Chauhans sold Thums Up to Coca-Cola in 1993 upon the cola giants reentry, it was forced to share shelf space with both Coke and Pepsi. Heres where the tale gets twisted. Instead of treating its number one brand like a prized stallionin 1993, when Coke entered India, Thums Up had a 36 per cent market share versus 26 per cent for Pepsiindustry sources say that Coke tried to kill the brand (The company denies this allegation). This case of cola filicide resulted in Coke India ceding ground to Pepsi, as Thums Ups market share began to take a precipitous dive. Today, Thums Up is once again King of the cola hill, with a 16 per cent share, and Sprite and Pepsi trailing it with 15 and 13 per cent respectively. So, what explains this remarkable tale of chutzpah and resilience? Thums Ups advertising has stayed clever and consistent, for one. In the 1980s, Thums Up ads featured a hummable jingle, Happy Days Are Here Againinnocuous enough, but in reality this was a coded message that

not only announced the availability of cola, after both Pepsi and Coke had exited the country, but also signalled the end of the Emergency, says brand expert Anand Halve. This was followed by Taste the Thunder tagline in the 1990s that is in existence till today. Coke has been far from consistent in this regard. I do not know what its trying to say, says Halve. The brand has alternated from its international messages, Enjoy, or Eat, Sleep, Drink, to ones in Hindi such as Jashn Mana Le, Thanda Matlab Coca-Cola, and Sar Utha Ke Piyo. Most importantly, Thums Ups taste profile has resonated well with the Indian palette. It offers a masculine appeal and its taste becomes biologically coded with this appeal after sometime, observes Santosh Desai, former Head of McCann Erickson. Still, question is, can Thums Up continue to attract the Gen-Next audience who are so completely familiar with Pepsi and Coke? I do believe that it will survive and thrive, says marketing expert Harish Bijoor. Still, Cokes Sprite has quickly become the No. 2 brand in the country and is within spitting distance of Thums Up. If the brand wants to continue tasting the thunder, it needs a strategy to compete with not just colas, but other flavours in the sparkling category as well.

Source: http://businesstoday.intoday.in/story/the-brand-that-refusedto-die.html/1/4179.html

Case Study 2: Kellogg's Indian Experience

A failed launch: "Our only rivals are traditional Indian foods like idlis and vadas." - Denis Avronsart, Managing Director, Kellogg India.

In April 1995, Kellogg India Ltd. (Kellogg) received unsettling reports of a gradual drop in sales from its distributors in Mumbai. There was a 25% decline in countrywide sales since March1995, the month Kellogg products had been made available nationally. Kellogg was the wholly-owned Indian subsidiary of the Kellogg Company based in Battle Creek, Michigan. Kellogg Company was the world's leading producer of cereals and

convenience foods, including cookies, crackers, cereal bars, frozen waffles, meat alternatives, piecrusts, and ice-cream cones. Founded in 1906, Kellogg Company had manufacturing facilities in 19 countries and marketed its products in more than 160 countries. The company's turnover in 1999-00 was $ 7 billion. Kellogg Company had set up its 30th manufacturing facility in India, with a total investment of $ 30 million.

The Indian market held great significance for the Kellogg Company because its US sales were stagnating and only regular price increases had helped boost the revenues in the 1990s.

Launched in September 1994, Kellogg's initial offerings in India included cornflakes, wheat flakes and Basmati rice flakes.

Despite offering good quality products and being supported by the technical, managerial and financial resources of its parent, Kellogg's products failed in the Indian market. Even a high-profile launch backed by hectic media activity failed to make an impact in the marketplace... The Mistakes Kellogg realized that it was going to be tough to get the Indian consumers to accept its products. Kellogg banked heavily on the quality of its crispy flakes. But pouring hot milk on the flakes made them soggy. Indians always boiled their milk unlike in the West and consumed it warm or lukewarm. They also liked to add sugar to their milk or lukewarm...

Setting Things Right Disappointed with the poor performance, Kellogg decided to launch two of its highly successful brands - Chocos (September 1996) and Frosties (April 1997) in India. The company hoped to repeat the global success of these brands in the Indian market. Chocos were wheat scoops coated with chocolate, while Frosties had sugar frosting on individual flakes. The success of these variants took even Kellogg by surprise and sales picked up significantly. (It was even reported that Indian consumers were consuming the products as snacks.) This was followed by the launch of Chocos Breakfast Cereal Biscuits. The success of Chocos and Frosties also led to Kellogg's decision to focus on totally indianising its flavors in the future. This resulted in the launch of the Mazza series in August 1998 - a crunchy, almond-shaped corn breakfast cereal in three local flavors -'Mango Elaichi,''Coconut Kesar'and 'Rose.'...

The Results
In 1995, Kellogg had a 53% share of the Rs 150 million breakfast cereal market, which had been growing at 4-5% per annum till then. By 2000, the market size was Rs 600 million, and Kellogg's share had increased to 65%. Analysts claimed that Kellogg' entry was responsible for this growth. The company's improved prospects were clearly attributed to the shift in positioning, increased consumer promotions and an enhanced media budget. Source: http://www.icmrindia.org/casestudies/catalogue/Marketing/Kellogg's%20 Indian%20Experience%20-%20Marketing.htm

The Results

In 1995, Kellogg had a 53% share of the Rs 150 million breakfast cereal market, which had been growing at 4-5% per annum till then.

By 2000, the market size was Rs 600 million, and Kellogg's share had increased to 65%. Analysts claimed that Kellogg' entry was responsible for this growth.

The company's improved prospects were clearly attributed to the shift in positioning, increased consumer promotions and an enhanced media budget...