BRAND

MANAGEMENT

ASSIGNMENT #1

ANALYSIS OF BRANDS: PEL, NAURUS, EVERYDAY

SUBMITTED BY: ABDUL-LATIF ABBASI

CLASS: MBA-III (DPO)

SUBMITTED TO: AKHTER MEHMOOD

DATE: 14TH NOVEMBER 2009

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 IBA INSTITTUTE OF BUSINESS ADMINISTRATION KARACHI

Reposition the “Naurus” brand to acquire a higher brand equity.

The important thing in developing the brand equity of Naurus through repositioning is
understanding the current positioning of Naurus and the flaws in current positioning.

Current positioning: Naurus is being positioned as thirst quenching, refreshing and a

mashroob that is vital in every season and for all ages. Naurus is focusing on a family to
position itself a family drink. Latest advertisement of Naurus is focusing on reminding the
audience about Naurus whenever they feel thirsty, desire for a refreshing drink, in a family
gathering, after the hectic work, in rainy weather, etc. Naurus is presenting itself as a “Qomi
mashroob”. The reason behind such a tagline is to inject the association of the drink with the
Pakistani audience.

Following are some ideas that NAURUS-SUNDIP company says about Naurus.

“Naurus (Pvt.) Ltd. as a company was incorporated in the year 1979. The brand “
NAURUS ” however existed much before that and was being manufactured under the
name of another organization. Naurus Syrup was positioned as the NEW (nau) DRINK
(rus) of the era when it was initially launched. Later on because of its increasing
popularity amongst the general population, it was positioned as the National Drink
of Pakistan because it like any other national symbol of the nation it connected
people together irrespective of their social stature or creed”.

Reasons of under positioning: to identify the reasons of under positioning I conducted a small

scale focus group interview and identified following reasons.

1. Naurus have failed to mark place against the two established brands namely Rooh-Afza
and Jam-e-shireen. Since both of these brands have marked their presence before

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 Naurus and have established a very strong position in the minds of the consumers
therefore Naurus has remained under positioned for years.

2. There are big names associated with Rooh-Afza and Jam-e-shireen like Hakim Abdul
Majeed, Hakim Abdul Hameed, Hakim Abdul Saeed and Mr. Iqbal Ahmad Qarshi,
Hakim Shafi-ul-Malik respectively. On the other side, Naurus have not developed such
an association to achieve a good market share against the tough competitiors.

3. Naurus has very strong competition from indirect competing brands as well. These
brands include “Pepsi”, “Coke”, “Tapal cold Tea and Coffee”, ‘Gatorade”, “Red bull”
and many other local and international brands of beverages and juices etc. hence
making a little room for Naurus to attain a greater chunk of this market.

4. Naurus has maintained an inconsistent approach in delivering its message. Naurus

spend little on advertising and other promotion campaigns that some responses really
baffled when I asked about Naurus and some people replied, “they did not hear about
Naurus”.

5. Naurus has not differentiated itself. Besides other things, Naurus is following the same
pricing strategy as Rooh Afza and jam-e-Shireen hence giving a good reason for
consumer to purchase Rooh Afza or Jam-e-Shireen rather than Naurus.

6. Naurus is focusing on the functional benefits of the laal sharbat but it has failed to
achieve its place in the minds of the consumer. Naurus is presenting itself as thirst
quenching and refreshing drink and therefore indulging itself in to the competition.
Such actions are presenting Naurus as “mee too” product.

Developing brand equity of Naurus: following are the steps to develop the brand equity of
Naurus.

1. First and foremost, change the tagline to something very catchy but logical. In order to
get a good tagline, one must understand four key components:

a. Target consumer: Pakistani society, more precisely, middle and upper middle
families. Individuals are not the consumer of such a drink.

b. Brand essence: A pure herbal syrup, that provides freshness and energy to your
body and revitalizes the strength of your body to keep you and your family
healthy and flourishing.
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 c. Brand promise: Fulfils the energy needs of a body through natural ingredients
and ensures a good health by providing you necessary minerals.

d. Brand personality: Naurus is a family doctor that helps you regain your energy
after a hectic job and keeps your family healthy. Naurus is constantly researching
to improve its formula in order to provide you a healthier life.

These components will draw a clear picture of the brand and a smooth way to
develop the brand equity of Naurus. The tagline of Naurus will be “Naurus ka
munfirid formula rakhey apko aur apki family ko fresh her din, her waqt”.

2. Naurus has to improve its rating in the minds of the consumers through brand
testimonials and brand associations. Analysis of the target market of Naurus will help us
to conclude that people like Talat Hussian, Shafi Mohammed Shah and Bushra Ansari
will help in improving the perception of Naurus. Since Naurus is first introduced in 1979
and these celebrities are the stars of that era and are still very healthy and active.

3. A consistent, planned and innovative advertising and promotion campaign is compulsory

to enhance the brand equity of an under positioned brand. The advertising campaigns are
intend to present the differentiating factor of the brand and that is “care” or “concern for
family” as safeguard is doing. Promotional campaigns are intend to give value to the
consumers in order to stand out against Rooh Afza and Jam-e-Shireen. The promotional
campaign should focus on price promotions rather gifts or sweepstakes etc. like giving
30% extra in same price, buy 2 get one free etc.

4. Naurus can stand out of the competition by doing little differentiation. Naurus present
itself as a drink that is constantly working on natural herbs and shrubs to provide
improved and enrich syrup for energy-demanding works and jobs of this era.

These are the ways through which Naurus can improve its positioning and acquire a higher brand
equity.

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Developing a proper positioning of PEL in competition against Wave
and Orient-Mitsubishi.

Current positioning of PEL: PEL is currently position as a brand that will change your
lifestyle. The recent advertising campaign featuring Hadiqa Kiayani in different lifestyles
presents the sense of comfort and luxurious life with PEL appliances. Previously, PEL products
were focusing on the housewives that only want to save their time by doing their housework
through efficient house appliances. PEL has extended its positioning to cater more trendy
women as well. Primarily, PEL is focusing on “change your life” from fatigue to relaxation and
comfort.

Positioning of WAVES: WAVES is paddling as a “largest selling brand of Pakistan”.

WAVES is presenting its product as a different entity under the umbrella of WAVES. WAVES
refrigerator is focusing on a family values. It is presented as a solution to a family needs of
freezing foods and drinks. Latest brand of WAVES called WAVES ROOMY, is catering to the
needs of larger family. Similarly, WAVES microwave oven and split ACs are focusing on
different markets with different brand positioning. Though WAVES has not presented itself
something very unique but it has developed its reputation through constant innovation and
providing the solution of the changing needs of its market. WAVES triplet, WAVES roomy,
WAVES plasma gold AC are some prime examples.

Positioning of Orient-Mitsubishi: Orient has a very strong brand perception of because of its
association with Japanese technology. Mitsubishi has a very strong brand image of quality in
the minds of consumers. Orient is presenting all of its products as “first preference” for any
first time buyer. Specifically, orient is targeting the first time buyer and the innovators who try
new products and new brands. “Pehli Chahat” is the slogan of Orient appliances.
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How to build strong brand loyalty for PEL: Following are some steps that help PEL to
develop its brand loyalty.

I. Brand must deliver its promise: Rather than exaggerating the actual functionality and
comfort derived from the PEL products, PEL should focus on communicating the real
benefit that consumer will get from PEL appliances. PEL should communicate the best
practices it employ to ensure the quality products to the consumer rather than
presenting the product an instrument of comfort and luxury like many others small
competitors are doing.

II. Product innovation is indispensable: PEL is not doing well against its counterparts in
introducing innovation in the appliances. On the other hand, Orient and particularly
WAVES are introducing constant innovation in their products. Product innovation
includes developing propositions- product, packaging and importantly service
elements. PEL should focus adding value to its product range through innovation.

III. Building loyalty is also about innovation in marketing ideas: Making the brand
stand for something more than a mere product for example successful brands are
streamlining to current trends for corporate responsibility. The successful cases of
Ariel, safegaurd and PSO are speaking high volumes of developing brand loyalty
through innovative marketing techniques such as being social responsible. PEL should
initiate such a program say “Green Pakistan” to aware the citizenry about the CFCs and
present the solution through innovating its product.

IV. Consistency is now replaced with authenticity: Companies are focusing on

development of natural relationship with customers rather than forcible bondage. PEL
should develop natural relationship with its customers by promising them a better
quality product, handling their queries and solving their problems. Fair & Lovely is a
prime example of such a natural relationship. The customers of Fair & Lovely are
treating F & L as a trusted friend.

V. Re-evaluate communication media mix: leading companies are no longer relying on

traditional media like TV, radio and print. PEL should re-evaluate its communication
mix. Since Ariel, Surf Excel, Safegaurd and Lifebuoy are using different
communication mix to approach their target audiences which includes shows like
“Paint masti”, “Safegaurd’s National hand wash program” etc. PEL should consider
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 other media like conferences about environmental friendly technology- in line with its
promise of social responsible. Trade fairs, consumer awareness programs etc to catch
the attention of its target markets.

VI. When, where and how to reach consumers should constantly be re-examined:
Since consumer preferences are not constant today, a proper re-examination of
products, messages, media and delivery is important.

NESTLE EVERYDAY:

Positioning: focusing on the newly married couple and the growing understanding between the
life partners is the central idea of the everyday. “Baney hain ek doosrey k liye” is depicting the
same concept as life partners are made for each other. Everyday is positioned as a right choice
for tea. Everyday is developing a perception of love and strong bond with tea as the love and
bonding nurture in a newly married couple.

Price:

Product description Size(in gm) Retail per pack

Everyday whitener powder 1000 Rs.330
Everyday whitener powder 40 Rs.15
Everyday whitener powder 400 Rs.150
Everyday whitener powder 4 N/A
stick pack

Promotion: Nestlé’s philosophy on promotion is very hard-line and conservative. Nestlé

believes that brand becomes weaker as consumer get addicted of receiving promotions. This is
the reason why Everyday uses rare consumer promotion. On the other hand, Nestle has
developed strong distribution system through trade promotions.

Distribution: Nestle everyday has a very strong distribution network. Everyday is available at
every nook and corner of the country. Everyday is available in wide assortments ranging from
1000gm to 25 and 4 gm to facilitate the consumption of the product according to the needs of
the consumer.

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Range of assortments: Everyday is available in five different assortments. These are 1000 gm,
400gm, 200ml, 40gm and 4 gm. All the assortments are catering the needs of different family
sizes and income groups.

Strengths: Everyday being leader in this category has the first move advantage. Everyday has
developed very strong brand loyalty and fast emotional bond with its customers. Everyday has
a very strong distribution system. The availability of the product is the major success factor in
building strong brand loyalty. Association of Everyday with Nestle is also a big advantage of
the (Everyday) brand. Nestle use to endorse their new brands through sub branding. The
association of Everyday with Nestle is ensuring the perception of loyalty, quality and
fulfillment of promise.

Weaknesses: One of the major weakness of a tea whitener like Everyday is its short expiry
dates. This product needs suitable temperature and neat space for good results. I personally
observed that sachets of Nestle placed at khokhas – particularly in interior Sind and Punjab- are
not in usable conditions. These packages are vulnerable to dust and heat which cause them to
spoil often.

Target Market: The target market of the Everyday is a young married couple that cares for
each other in early years of marriage life cycle. That couple may fall into middle and upper-
middle working class of the society.

Unique selling proposition: “baney hain ek doosrey k liyey”

Positioning statement: “Everyday app ki chai mein mazey ka jadoo jagaey, kyon k Everyday
aur chai bunney hain ek doosrey k liyey”. Everyday is claiming that there is no alternative of
Everyday because tea is incomplete without Everyday.

Brand in next five years: Everyday has a very good potential of substituting the milk as
necessary ingredient for tea. Since the milk is getting difficult to available and prices of milk
are also rising very sharply, Everyday is becoming a good alternative of milk for tea. Everyday
has developed a strong brand perception and that can be cashed through extending the target
market to larger family sizes or even joint families. I have witnessed many families have
shifted from milk to tea whitener in order to minimize their expenditures as well as giving a
new taste to tea.

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Everyday is commonly used in offices, meetings and in mess of hostels. The scope of the
product is very wide and the market is very lucrative to yield benefits of high brand loyalty.

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