The Hindu Business Line : Break-out brands

Before the Swift, Maruti Suzuki was a middle-class, trusted brand of cars. After Swift, Maruti Suzuki is a young, sexy, brand of cars – and, of course, continues to retain its position as a trusted brand.

Apple before the iPod was an innovative, anti-IBM brand of personal computers and laptops. If you were with the establishment, you were an IBM user. If you were anti-establishment and more fun, you were Apple. Apple after iPod is a cool, lifestyle brand. The “anti-IBM” tag has vanished, but the brand retains its style and innovation quotient.

Tata before the Nano was India’s most trusted brand, reflecting leadership with trust. Tata after the Nano is all this and more – it is now also one of India’s most courageous and innovative brands, one which has the spunk to innovate on an amazing scale.

Honda before it launched hybrids was always the expert on automobile engines. Honda after hybrids is still the expert on engines, but also a brand increasingly preferred for its environmental sensitivity.

Tata Tea before it adopted the “Jaago Re” cause was a very successful brand of fresh, plantation-packed tea. Today, Tata Tea is in the midst of transforming itself into a brand which speaks to youth and for youth, a socially active beverage. And it continues to be a fresh and stimulating drink.

These are examples of what we have termed ‘break-out brands’. Established and respected brands which have successfully added a new and positive attribute to themselves, even as they retain their core propositions. In other words, they have broken out of their golden cage, and have famously added on at least one more very different, positive and modern dimension to themselves.

Why do brands break out?

Why does a successful brand want to break out and add a new dimension? The key reason is that consumers evolve significantly. Their passions, obsessions and interests change. So if a great brand wants to remain as consumer-relevant in the future as it has been in the past, it has to reflect this evolution. For instance, concern for the environment features today in many consumers’ choices. Twenty years ago, the environment may not have featured on consumers’ radar screens at all. Therefore, if a brand such as Honda wants to retain the strong affinity with these consumers, a good method is to take on the added dimension of being environmentally sensitive itself.

It is not merely consumers who change, even industries do. Apple’s initial position as an “anti-IBM” brand would have certainly lost relevance after IBM chose to exit personal computers. Hence Apple had to adopt an exciting, relevant added dimension such as “cool and lifestyle”. Sometimes, when your arch-enemy vanishes, your brand has to begin its search for a strong proposition all over again.

Another key motivator for breaking out is that brands, like Artemis, want to remain perennially youthful and exciting. The conventional marketing route to achieving this is to relaunch the brand periodically by digging deeper or climbing higher on the core benefit which the brand already offers. Dove’s ‘Real Beauty’ is a brilliant example of this conventional approach. Dove built on its core attribute of being a ‘real moisturiser’ soap and the benefit of really healthy skin. And in recent days it has raised its appeal to an emotional pitch by highlighting what real beauty means.

The break-out route, on the other hand, achieves this Artemis objective by adding an entirely new and lateral dimension to the brand. The Tata brand adding on the dimension of innovation through the launch of the Nano, a breakthrough concept in automobiles, is a good example of this – because innovation is quite distinct from the brand’s core proposition of trust, yet adds a very favourable new facet to the brand. Suddenly, with sub-brand Nano in its stable, brand Tata is seen as very innovative, even as it continues to be a leader enjoying trust.

How do brands break out?

We have seen four successful break-out routes which established brands have used:

A major product modification by the parent brand

Launch of an iconic or breakthrough product under a new sub-brand

Adoption or championing of a new cause or life theme by the brand

A new ‘owner’ imprinting his or her personality on the brand

Let’s consider each route. The first, a major product modification by the parent brand, is best illustrated by Maggi and Honda. Maggi has made an effort to break out of its ‘taste and two-minute convenience’ cage, with the addition of health as a new dimension. It has done so because fast food which is not healthy is being looked down upon by responsible parents today. To break out, Maggi had to introduce a fundamental product modification – noodles made of whole wheat, which are far healthier compared to the earlier product made of refined flour. The new “Taste Bhi, Health Bhi” platform rode on this major product modification.

Similarly, Honda added on a new dimension of being environmentally sensitive by introducing hybrid models of its popular cars. This was enabled by a new hybrid engine developed by Honda, once again a fundamental product modification. If a brand wishes to use this route to break out, the product modification has to be significant and not superficial; also, the product being modified should be the core product for which the brand is most famous. For instance, a modification of Maggi Soup Cubes could not have enabled brand Maggi to break out, as Maggi’s core product is noodles.

The second route, the launch of an iconic or breakthrough product under a new sub-brand, is well illustrated by the brand we know best, Titan. For the past two decades, Titan has been a market leader in watches, a loved and trusted brand, perceived as a statement of elegance and style on your wrist. Yet, last year, when the brand wished to break out and add on the dimension of being youthful and sporty, it achieved this through a new sub-brand, Titan Octane. We introduced breakthrough wrist watches for Indian consumers – chronographs, tachymeters, multi-functions, retrograde movements and stunning sporty new designs – under a sub-brand which conveyed the high energy of sport.

Why a new sub-brand Octane? Because it captured the spirit and energy of sport like the parent brand Titan never could. This breakout route was possible because Titan is a brand with wide appeal across consumer segments, hence can support multiple sub-brands well. Each new sub-brand adds a positive new dimension to the parent brand.

This “sub-brand” breakout route is best used by wide-appeal brands such as Tata, Nokia, Titan, Maruti Suzuki and Airtel. This route can also work effectively if a brand is diversifying into a new product category, such as the sub-brands Apple iPod or Bajaj Pulsar.

The third route, breaking out by championing a relevant cause, is unique because it involves no new product or technology, yet builds customer affinity exceedingly well. Tata Tea’s recent Jaago Re campaign, where a brand of tea championed social and political awakening and urged youth to vote, is a good example. It helps Tata Tea break out because the brand, which has traditionally been associated with “Asli Taazgi” (real freshness), is suddenly seen as far more youthful, having connected superbly with both the dissatisfaction and action-orientation of youth.

The fourth route, the imprint of a new owner on the brand, works well in categories where content or consumer perception is directly moulded by the owner, who is typically not merely an investor but also a designer, editor or master chef. So fashion, lifestyle or media brands can use this breakout route successfully. For example, the flamboyant personality of a Vijay Mallya has immediately made a difference to Kingfisher Red - which is suddenly perceived quite differently from Deccan Air, though it is merely a renamed version of the latter. Or CNN-IBN in India, which has engineered a fairly successful break-out from CNN’s established global brand proposition, led in part by the personality and perceived expertise of its editor-in-chief Rajdeep Sardesai.

Do break-outs always succeed?

It is our view that each of these four break-out routes works best in a certain set of circumstances, product categories and specific consumer groups. Hence, brands which seek to break out should understand all variables at play before choosing their preferred route. Just as an illustration, the fourth route quoted above – the personality of a new “owner” leading to a brand breakout – works very well with designer and restaurant brands. On the other hand, we are unable to see how most FMCG brands can effectively leverage this route.

Also, brand break-outs have a higher probability of success when the parent brand enjoys high awareness and trust, and is well positioned on its core and existing dimension. Only then are consumers normally receptive to a fresh new dimension being adopted by the brand. Reflect for a moment on successful break-out brands we have described in this study - Tata, Honda, Maggi, Titan, CNN and Apple – and you will see that this is true in virtually every case. If your brand is yet to strongly prove itself on at least one core dimension, don’t attempt a breakout, it is unlikely to work.

But if a brand meets these criteria, attempting a break-out is a good idea. A successful breakout can virtually re-craft a brand’s relevance, build strong consumer affection and keep the brand youthful and energetic for many more years. From ancient Greek Gods to new-age mortals, we have all been searching in vain for the fountain of youth. For brands, break-outs may be a close substitute.

(Harish Bhat is Chief Operating Officer – Watches, Titan Industries. Suparna Mitra heads global marketing for Titan. These are their personal views.)

Do send in your queries, suggestions and feedback to brandline@thehindu.co.in

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