Strategy: Why Videocon wont “pakad life ka any signal”!

Glued to swanky Videocon ads aired on television these days? The advertisements depict various stories trying to connect emotionally with the viewers. Be it “naye kharche ka signal”, “naye job ka signal” or “naye dosti ka signal”, the company scores well when it comes to creativity. They have also managed to showoff India’s biggest brand Sachin Tendulkar every now and then. 100 cities in 100 days look aggressive from outside. But advertisement can only create awareness about a product; strategically the company seems to be lost out, before the battle really begun!

There are many reasons than one. First of all, “Pakdo Life Ka Har Signal" message given in the ads with the company’s reasoning that it underlines Videocon’s commitment to deliver an efficient service through a strong network. When you launch a new product, customer looks at the novelty. What is the value add if I switch from the existing one. And when it comes to changing service provider and number, the reason should be really out of the box. Videocon has emphasized on good signal or connectivity. But when you compare the level of competition, Videocon seems to be in a totally different space. Each service provider is focusing on value added services, promising customers better utilization of money. Good connectivity is not a ground to compete anymore. It is assumed that it has to be good.

Vodafone is trying to empower customer with its Power to you campaigns. DoCoMo is going for caller tunes and low calling charges. Aircel is focusing on connecting with social networking sites with its Pocket Internet add-on. Airtel is again promising on lower call rates and higher value added services. Videocon seems to be boarding the bus when everyone else seems to have taken the flight!

Industry is burgeoning with new entrants. The leaders, the likes of Airtel and RCom are facing problem retaining customer. The prices are falling, profits are hurting, and outlook seems to be bleak. Analysts are shrugging off telecom companies. 3G spectrum is only going to add to the worries of these companies by increasing the capital investments, not promising quick returns.

fOoD fOr ThOuGhT: Videocon doesn’t seem to be in the right industry at the right time. The strategy also isn’t promising. The brand value isn’t so high that people go gaga about the product. Hope somebody is listening and taking corrective steps before it is too late!

Videocon: New Avtar!

Few day back, I saw some new add of Videocon on television. It is running over all the channels. The last significant re-branding advertisement that I could recall is that of Godrej Properties. So, another brand trying to shave off its "Old" image.

Videocon had that typical giant "V" type symbol which stood for strength and robustness of the brand. But the electronic market is so dynamic that brands needs to re-image itself with changing demand. Gone are the days were those SRK - Dhoni adv of beechade bhai bhai impresses audience. What caught me of the new advertisement is two sweet animations, green coloured trying to make little flower happy by changing the environment, or rather providing what the flower was waiting for. The adv is also good at ears. I guess the re-branded Videocon is trying to convey brand's energy, change, eco friendly products targetted for the youth.

Prior to this, the brand has banked on other propositions, such as 'Technology for health and pleasure', 'Bring Home the Leader', 'New Improved Life', 'The Indian Multinational', 'Whatever role life gives you, play it big', as well as the most recent one, 'Eco Logic for sustainable life'.

The 'V' in the new Videocon logo is composed of two animated green, lava-like shapes – called Chouw and Mouw, which are 'live' characters and will be used to tell simple stories through a series of short videos. Both have certain personality traits, based on their physical attributes. Chouw and Mouw come to the rescue and spread happiness and joy through their charm, kindness and efforts. KR Kim, vice-chairman and chief executive officer, Videocon India, says, "The rationale behind Videocon's brand evolution comes from our constant endeavour to listen and respond to changing market dynamics in India and overseas. Our new tag line - Experience Change - will mark the beginning of a sea change for customers of consumer durable goods."

Speaking about the two mascots, Prasoon Joshi, executive chairman, McCann Worldgroup India, and regional creative director, McCann Asia, says, "Chouw is the kind-hearted one and Mouw the more mischievous one. And together, they send out the message that if you put your heart and mind together, anything can be achieved."But why did the brand feel the need for change? Prasoon adds, "The logo needed more energy. So, we energised it by giving it a more modern look. Green is the colour of the future. The logo also has a liquefied, fluid-like feel to it. It gives the feeling that the company is on the move and can take any shape and form."

Fingures crossed for the success of re-branded "India's Multinational"!