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Thursday, June 9, 2011

Nestle Bar One : Kaafi Hai ? Not Enough !

Brand : Bar One
Company : Nestle India

Brand Analysis Count : # 484

Bar One is a brand which was languishing in the product portfolio of Nestle for around two decades. The brand recently got some attention from the owners and its future is being rewritten. Bar One was launched in India in 1991 ( in some sources its given as 1994). The brand when launched was positioned as an energy /snack bar- some thing that you can eat in between times.

Bar One initially was well promoted by Nestle so much so that at one point in time, Bar One had a market share of around 5 %.But Nestle's attention soon shifted to non-confectionery items and Bar One was pushed aside interms of strategy and investment. I still remember the old Bar One jingle
Nestle Bar One Ba Ba Bar One
For those in between times ......

Later the brand had the tagline " Get More Out of Life " ( see the storyboard)

Bar One is a caramel based chocolate which has naugat and chocolate similar to Cadbury's 5 Star. The brand was positioned as a high energy funky chocolate which is essentially a small snack. The brand was well ahead of its time especially in the Indian market with respect to positioning. Indian consumers were not familiar with the concept of chocolates as a snack when Bar One was launched.

Second factor is the weak positioning of Bar One. Infact Bar One did not had a powerful positioning compared to the competitor . The focus on "energy bar" was too early for the Indian market. Later the company itself ditched the brand by stopping brand promotion.
Bar One in terms of brand competition competed with Cadbury 5 Star. 5 Star had tremendous brand power during the nineties and Bar One could not hold out with the competition. How ever Nestle did not kill the brand but put it on the sidelines. The interesting part is that the brand was available in the retail outlets even when the brand was silent in the media.
The major reasons ( in my opinion) for the brand's lackluster performance are Packaging and Positioning. The earlier packaging was dull compared to the 5 Star's golden packaging. The package for confectionery is significant because this is a product that is bought impulsively and the packaging conveys a strong cue for the purchase. 

In 2010, the brand was relaunched with a new packaging and price. The new packaging is bold and lot of golden color splashed across it. After a long while, the brand had a reasonably attractive packaging. The relaunch also saw a new positioning for the brand. The brand sadly messed up on the positioning in the relaunch also. The brand came out with very poorly executed campaign positioning Bar One as a chocolate that will attract girls !!!

Watch the ad here : Bar One 

The brand now has the tagline " Kaafi Hai " meaning " Its enough ". I really don't understand the connection between the brand and the tagline. One notion can be that Bar One is enough to satisfy your hunger ? Anyways the ad series with the new tagline may not be enough to lift the brand's fortunes. But the strong presence at the retail outlets coupled with the tendency of consumers to try out different brands will once again add more sales for this brand.
Bar One desperately needs investment in serious brand building. The brand is capable of building a position in the market dominated by Cadbury's brands. Bar One also has strong recall among the consumers backed by better taste and reasonable pricing. It needs more focus on developing a meaningful positioning . 5 Star has already owned up the " Taste" platform . The current campaign of Bar One is below average and will only make matter worse for the brand. 

Friday, June 3, 2011

Brand Update : J Hampstead takes Hrithik as Brand Ambsassador

The premium suit brand J Hampstead from Siyaram has roped in Hrithik Roshan as the new brand ambassador. The new set of commercials are in the pipeline for the brand featuring the new brand ambassador. The brand is still focusing on the celebrity route for brand building. 

J Hamsptead had earlier used the Bollywood Diva Priyanka Chopra to endorse it. The move was different since not many Male brands roped in female celebrities to endorse it. The celebrity endorsement route had worked for the brand in creating certain amount of awareness in the market. The brand is now worth around Rs 50 crore and grew about 20% CAGR in 2010. In 2009-2010, the brand launched its international range of readymades in India.

The entry of Hrithik will add the style quotient for the brand to a large extent. The brand is targeting the upwardly mobile 35 + consumers who look for high quality stylish cloths. The brand's major competitor is the market leader Raymond's. 
The celebrity powered branding works well in creating lot of awareness/visibility to the brand but brands are built on meaningful differentiation. Here J Hampstead is focusing on Quality as the key differentiating attribute. But quality is an attribute that is taken by every other competitor in the market. Along with the celebrity, J Hampstead needs to identify a relevant differentiator if it wants to fight Raymonds. The problem with celebrity endorsement is that it will help get the brand noticed. If the brand wants consumer to remember, message is important. 
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