Category "Director's Desk"

As children, one thing we were always taught to understand and acknowledge was the importance of time. Be it an educator at school or someone at home, the wristwatches they adorned always had our fascination till we came to an age where we started using them too! That said, when asked which one was their favourite, the unanimous answer happens to be one brand that ruled the Indian time market and was a must-have in the retro era. HMT watches known for their robust design and sturdy functionality were on the proud-ownership list for the youth then while living up to its tagline – Timekeepers of the Nation.

Regrettably, once a symbol of rapidly industrializing India that made wristwatch an inalienable accessory waned with time. Let’s take a look at the timeline of the rise and fall of one of the largest watchmakers in the world…

1. Global beginnings leading to a legacy

Hindustan Machine Tools (HMT) was officially incorporated in 1953 by the Government of India in Bangalore as a machine tool manufacturing company. Their span of offerings diversified into watches, tractors, heavy machinery such as metal forming press, CNC systems, bearings, and die casting machinery. In 1961, a historic event took place during the liberalisation period, when HMT collaborated with the Citizen watch company of Japan to set up India’s first wristwatch manufacturing facility. This collaboration was a crucial step in HMT’s expansion as the enterprise had deep expertise in heavy machinery, but the micro-engineering that went behind watch manufacturing was new to the Indian market.

2. Time to rule: India’s monopoly

As a prevailing economic policy of the then government which imposed severe restrictions on an imported good, any meaningful competition was thwarted, thereby favouring local production of goods. HMT swiftly rose to hold the iconic watch brand status.

From the mid-1960s to the 1980s, the demand for wristwatches was at its peak, so much so that it made sellers put up waiting lists for certain products which stretched for months. The black-and-white ad slogans Desh ki Dhadkanand Timekeepers to the Nation rang true while grabbing the attention of the people who resonated with its sentiment of ‘Made in India’. In 1991, HMT was reported to produce nearly seven million watches- more than all its rivals combined! Such was its monopoly.

3. Fuelled national consciousness

One of the contributing factors of HMT’s tremendous success was the promotion that captured the essence of national pride and the brand’s continued USPs were precision and accuracy. One of the HMT’s first documentaries that went live in the black-and-white era captures how HMT offered the one essential thing humans work around- the small package of accurate time at affordable prices.

Dedicating its product to the people of India, HMT made a remarkable move when it launched Janata. The most storied, emblematic, and charming watch of all times, HMT Janata represented a collective national dream that filled Indians with pride and united them through a locally-made, reliable product.

4. Robustness and functionality in a budget

The well-thought-out advertising campaigns reflected India’s social and regional diversity with melodious renditions conveying an evergreen message- a timekeeping machine for those who seek functionality in a budget. The watch was designed bearing in mind the rough usage it would be exposed to when Indians used public transport to travel. HMT thus introduced watches that delivered the best customer experience to date- sturdy with minimal cosmetic orientation.

5. Names sculpted in time

That HMT watches were decidedly subdued in design, were essentially unfussy and hardy timepieces is no news. But what also cannot be ignored is how its designs flourished with a simple strategy of personifying Indian identities, giving its model names that looked like desi versions of watches- Janata, Amar, Ajeet, Sanjay, Usha, Vijay, Vikas, Rajat, Kanchan, and whatnot! HMTPilot was the most loved among the Armed forces. While many from the young generation later found love in other international brands that came in, the personalisation that HMT delivered in that era is something that the loyal fans continue to extol.

6. A gift, lucky charm, or legacy to carry forward

Watches have been an evergreen gifting choice for Indians, probably because of the fact that it was considered a status symbol decades ago and the ideology continues. Considered a quintessential gift for all major milestones in life like high school graduation, college graduation, weddings, or family heirloom HMT watches were always affordable and reliable. This vintage ad in a newspaper gives a peek into what drove brand loyalty from the customers irrespective of the age, or region- classic, metallic look, sturdy, water-resistant (new in India), accurate, and something which can be passed on to generations.

7. Market transition: Technology vs Craftsmanship

Having ruled the market as a monopoly for over two decades with its classic mechanical watches, HMT witnessed the global watch industry transition from mechanical to quartz in the mid-eighties. However, the market demand in India remained unaffected as quartz watches were highly-priced then. A couple of years later, when the hitherto import restrictions were lifted, the prices for quartz watches dropped and amidst all this, the Tata group decided to enter the market, with the brand name Titan.

As an enterprise that gathered brand loyalty from customers of various age groups, HMT continued its focus on producing more mechanical watches. The step probably was one of the most notable misses by HMT, as it didn’t realize that the Quartz technology, though relatively expensive, relied on the latest technology rather than craftsmanship.

8. The dawn of decline

In the early 1990s when India opened doors to global brands owing to the liberalisation, Quartz watch became a norm in India. When HMT decided on the continued production of mechanical watches turning a blind eye to the rising fan brigade for Quartz, it somewhere started losing out to the competition. By the time it joined the bandwagon of Quartz, other players like Titan had already established themselves in the market, and in 1994 HMT registered the highest loss in the past five years amounting to 60 crore INR. The lack of innovation became evident in HMT’s offerings when Titan which was in its initial growth phase reflected creativity and innovation through different designs which also captured the interests of the feminine brigade.Ironically, the original timekeeper could not pace up with changing times, and robust and sturdy started losing out to sleek and sophisticated.

9. Inability to leverage digital marketing

Coming to think of it, the effect HMT had on the Indian market was phenomenal. From building a nationwide community of brand loyalists to using the right promotion tactics and grabbing the attention of the consumer- they did it all. However, the lack of market analysis and delay in identifying the changing demand of consumers led to its downfall.

Even in its later years, when it could have captured the interests of the audience through the latest marketing tools, HMT chose to ignore the power of digital marketing and highlight how they are an evergreen choice for those who love vintage and are still a huge fan of robust, sturdy and accurate watches.

Conclusion:

The hallmarks of an excellent consumer business include the ability to identify and change with changing consumer preferences. Understanding the market segments, investing in brand building, position the brand in the correct market segment by innovating the product and last but not the least understanding the product performance and its merits could have made the difference for HMT. Watch Retail stores revamping and designing aligned to the brand, Ecommerce shopping center and digital marketing could have changed the fortunes for the company.The lack of product differentiation that would have rather encouraged HMT’s target audience to continue buying products, was evident when it failed to recognize the expectations of the market; which Titan seemed to have grabbed- the likes of women and children in watches.

While HMT still remains an irreplaceable time-maker in the hearts of many Indians, for most enthusiasts they are keepsakes that have been passed over generation and hold a great sentimental value, and arguably – monetary worth.

As Indians, we have all grown up with a few things in common, one of them being the instant food that
can be cooked anywhere, anytime, and is loved by people from all the regions alike. That said, what is
the first thing that comes to your mind when you are famished and want something that can be cooked
in an instant?

Until the concept of instant food had grabbed the interest of Indians, food items that were served as
fast food included south Indian cuisines like Idli, Dosa, and Vada or Onion and potato fritters. But even
for these food items, a batter was required to be prepared and left overnight.

And then something that wasn’t expected to reach households so far and wide was launched in the
market. Maggi is not just food, rather an emotion that resonates with millions of people in the country.
Let’s take a look at how this instant snack made it to being soulful ever since it was introduced in the
Indian market.

Evolution of a brand

In the late 1800s, the Swiss government tasked a budding entrepreneur with a job to create a product
that would be quick to prepare yet nutritious and tasty, as more women were starting to move out of
their homes to work right after the industrial revolution phase in the country.

Thus, an ubiquitous brand was born which was beginning to receive love from every corner of the world.
Julius Maggi named the company Maggi, and countries like the United States and France began its
import in the early 1900s.

Beginning of a legacy in India

In 1947, when on one side the country united for its independence and new opportunities were starting
to open up for business, Nestle acquired Maggi and got the rights to introduce and market it in India.
While the product had been around for quite a while, it was only in the year 1983 when it started import
to India and rose to fame, and then on, there was no looking back.

Nestle’s Maggi noodles began its import in India during the World Cup when the Indian Cricket team
lifted the trophy and Maggi was promoted on all the channels- the black and white TV, the Radio, and
the print media. At a time when Indians were still getting used to chocolates being easily available and
affordable, Maggi had begun to show its magic and continued to become the choice of millions of
people. The idea and the product that was created in minutes were liked by everyone! But what worked
the best for Maggi and how it replaced the local recipes passed down from generations to make a
special place in the hearts of Indians is commendable.

Here’s the story of a few of the many campaigns that transformed Maggi into an emotion in India…

1. Target Audience

At a time when the industrial revolution had left a positive impact on many other nations, India’s
industrial sector was in a poor state. It became imperative to emphasize on various industries resulting

in more women going to work. In an era, when women in India were expected to stay home, cook
meals, and take care of the kids, Maggi enabled them with a tool to satisfy the hunger pangs of their
children who refused to accept the cooking time.
It was during the late eighties when Maggi launched its Bas 2 minutes campaign targeting mothers and
kids, who were elated by the easy availability of an instant snack that was easy to make and equally
delicious at the same time. The urban hold for Maggi had gotten strong by receiving credit for sending a
liberating message to women.

2. Consumer Engagement

Within the first two decades of the formidable legacy it has established, Maggi was able to command
the quick noodles market it had created in the subcontinent. By the early 2000s, Maggi had found a
frantic, loyal consumer base in every corner of India within users of all kinds- hostelers, singles, couples,
families, travelers, soldiers, and whatnot, due to its easy availability and very little resources required for
cooking!

The year 2008- silver jubilee for Maggi’s launch in India, a time when digital transformation had a rising
curve, the brand seized the opportunity and launched the Me and meri Maggi campaign, inviting
consumers as users to send in their personal Maggi stories that would be portrayed in the TV ads to
follow. The response- more than 30,000 entries made it to their advertising agency.

3. Maggipreneurs

Maggi- Rs 10 per plate – How often do you come across such handwritten posters while traveling within
a city or anywhere in a semi-rural or rural area? With generations of Indians growing with it, Maggi was
successful in transcending all ages and economic divides. It spawned legions of Maggi entrepreneurs
who have been the hunger-backups for office-goers, college students, and travelers with nothing more
than a stove, a cheap utensil to cook in, and disposable cutlery at their command. Such is the effect of
this instant food, that these Maggipreneurs have used the same brand colors for their shop as Maggi’s
to grab their customers’ attention. After all, a lot goes over a hot, piping bowl of Maggi.

4. Expansion, taking the healthy route

Not long after the Meri Maggi campaign was successful, and Maggi continued to top the list of most
loved food of all times, did a wave strike questioning the unhealthy ingredients that go into the making
of the noodles. The Dal Atta Noodles from Maggi made of whole wheat and contained pulses was
positioned as a healthy snack. The Atta Noodles was then followed by other products over a span of five
years such as Maggi Oats noodles, Magic Cubes, and Masala-e-Magic for that perfect Indian meal.

5. Underrated crisis management

In 2015, Maggi became the centre of a massive food safety scandal wherein the FSSAI claimed that
Maggi tested positive for high lead content. A nationwide ban was later issued on all Maggi products.

Surprisingly, it took Nestle a long time to come up with a proper response to the accusation. Over
19,000 mentions since the controversy broke. And yet, the response was far from convincing. Not only
did Nestle deny the accusation, but also tried covering its back by accepting that the lead content and
other harmful substances in non-permissible limits are from the natural resources ingredients in the
noodles.
From replying late to trying to sweep it under the carpet, defending in the wrong way, and apologizing
when nothing worked- Nestle’s online reputation management saw it all and how!
In today’s fast-paced world, when conversations happen within seconds, it is important to keep your
customers engaged to maintain the brand impact and consumer loyalty. The fact that Maggi avoided all
interactions with its consumers on digital platforms for about two weeks after the findings, ended up
adding to the speculations.
In such a situation, their ORM and PR team could have taken an active approach and ensured a
corrective action to turn the upset customers on their side and eventually into brand loyalists! Such is
the importance of an experienced, knowledgeable, digital marketing and crisis management team.

Conclusion

Even since its launch in India, Maggi has consistently maintained a price that is affordable to everyone.
But here’s what worked for them.

1. The “2-minute noodles” catchphrase that propelled an emotional relatability in Indians.
2. Identification of target audience and consumer engagement.

What didn’t work: A below-average online reputation management and digital marketing plan, which
otherwise could have turned the situation in Maggi’s favour.

As a global community, we are all well aware of the importance of decadent sweets in our
celebrations or daily routine. Irrespective of the religion, culture, gender or nationality we belong to,
the one thing that brings us together is food. And desserts top the list when it comes to our idea of
sharing love. That being said, how often do you happen to think of digging into some chocolate and
the first thing to cross your mind is Cadbury’s?

Such is the influence of the brand on the consumers that most of them don’t even ask for a
chocolate when shopping, rather a Cadbury! Before digging deeper into how Cadbury became the
most accessible, and easily available, go-to dessert of our day-to-day lives, let take a look at how the
brand has evolved since its inception during the times of no digital channels.

Beginning of a brand legacy

Established by John Cadbury in the early 1800s in Birmingham, England, Cadbury’s journey in India
started in 1948 with Mumbai as it headquarters. Importing chocolates seemed like a new yet thriving
business then. With the rising demand and popularity amongst those who could afford luxury
chocolates in India back then, manufacturing operations soon started at multiple locations including
in India.
With the growing demand and love for chocolates in the coming decades, the first-of-its-kind
chocolate brand in India brought more and better variants for the chocolate apart from venturing
into beverages like Bournvita, for its consumers, only to fuel their love for chocolate.
From then to this day, Cadbury India has a share of over 70% in the market, making it a market leader
in the industry globally. But how did it establish its identity in the Indian market where sweets made
of milk, gram flour, sugar, or leftover churned cream, had been ruling for decades.
Understanding the culture, demography and purchasing power of the citizens and then devising
campaigns to grabbing the interest of the audience in India may have started with a hiccup, but
Cadbury for sure knew the way to the Indian hearts. Speaking of which, the channels of
communication to reach its consumers may have evolved over the time, but what hasn’t, are the
emotions. And the chocolate giant seems to have been consistent in its approach to portray the
emotions onscreen with one gimmick after the other, even in times of crisis management.
Taking a close look at how has, Cadbury retained its brand value consistently, decades after it was
introduced in the land of desi sweets.

1. Identify the right audience
   In the initial years of its arrival in India, chocolate was considered a luxury which was affordable
   only to upper middle class and above. To expand its customer base and turning it into an
   opportunity in the next few years, Cadbury launched a mini version of the chocolate, with the
   price and contentment considerations that came along for buying a chocolate to the middle
   class. The centre-filled chocolate taste of Eclairs had the widest reach possible through TV and
   newspaper commercials when it entered the choice list of every 80s and 90s kid for their
   birthday celebration in school, or as a token of good work from parents. Till this day, Cadbury
   Eclairs, renamed Choclairs in 2013, has a strong hold in the semi-urban and rural market.
2. Increase the target market – Chocolate for ALL
   

   Once popular with the kids, Eclairs and Dairy Milk had established itself as a symbol for inherent
   goodness and friendship between kids. While the sales and revenue from these two had been

   constantly rising, the brand was perceived as a kids-ONLY. In 1994, Cadbury released a TV
   Commercial with tagline ‘Kuch Khasa Hai…. Asli Swaad Zindagi Ka’ to break the brand’s kids-only
   image and positioned it as a product for everyone’s consumption, irrespective of the age or
   gender. What else could be a better combination than the girls and Cricket and it gave birth to an
   advertisement, where a young female dancing on the cricket field while enjoying the taste of
   chocolate.
   Now, that’s an act every Indian desire to do that when Yuvraj Singh hits the last six to win the
   World Cup in 2011. Isn’t it?
   To think of it in the digital age, the video would have gone viral with memes reigning the social
   media for the next couple of weeks.

3. Encashing Festive – “Gift” Promotional Campaigns
   Once Dairy Milk had penetrated the Indian dessert industry, it began to leverage forward looking
   attitudes and culture which were aspirational. From a girl running on a racetrack, to older people
   eating chocolates and singing in the street, Cadbury ensured it touched every feeling in the society,
   which also included a very essential aspect- gifting and festivals. Valentine’s day, for example, had
   hardly seen any excitement among the youth of India. As a handy, go-to, happiness-inducing
   element, dairy milk chocolate was used for the first time as a gift to someone special.
   Aware of how, we as a nation, consider our festivals and celebrations incomplete without sweet,
   Cadbury Celebrations was launched in the late 2000s that not only became the alternative to local
   sweets but also increased the volume sales.. Be it representing a sweet-n-rocky brother-sister bond,
   or a family function, the array of innovation around Cadbury Celebrations catered to every aspect of
   gifting making it a symbol of happiness. The almond, cashews, and raisins enrobed in rich chocolate,
   wrapped in a blingy purple box made Celebrations a convenient, go-to gifting choice for Indians who
   consider dry fruits an auspicious element in food.
   The portrayal of siblings fighting over chocolate in a Raksha Bandhan ad, or a parent celebrating with
   something sweet on the daughter’s major achievement was relatable to the audience. Till date, these
   ads continue to effectively drive sales through various digital platforms like YouTube through paid
   campaigns and customer engagement through Influencer marketing.
   Bottomline…. What picked up Cadburys sales…. Viral Advertisements on the Television media…
   Most watched.
   
4. Crisis Management
   In the 2000s, Cadbury saw a major backlash when few packets of Dairy Milk were found to be
   ingested with worms. At that point, Cadbury was struck with the worst crisis ever with Dairy Milk
   experiencing rejection from everywhere. It wouldn’t be incorrect to say that Cadbury began with
   ‘Influencer marketing’ much before digital channels overpowered the generation, when it roped in a
   veteran Bollywood star with a huge fan following among parents in all parts of India.
   Cadbury’s took the route of influencer Marketing and that’s how Amitabh Bachchan, as the first
   celebrity was brought onboard as the brand ambassador to promote Dairy milk under the ‘Kuch
   Meetha Ho jaaye’ series of ads. The move was necessary after the worm controversy that had a
   huge negative impact on the sales and revenue in the following months. To go more aggressive with
   positive branding, Cadbury increased its ad budget by 40%.
   
   The same year to gain the customers trust back, Cadbury launched the Miss Palampur ad campaign
   while they activated Project Vishwas. The commercial talked about a cow’s victory on winning the
   title and her so-called father (played by AB) who proudly described how tough the competition was.
   The campaign was set in villages to win the trust of rural India without losing its urban appeal.
   Cadbury left no stone unturned to tell the story. They tapped every channel to ensure its reach was
   as wide as possible– TV, print media, radio and hoardings, bus shelters, retail points, and of course
   digital. Between 2005-09 the brand increased its sales to double, from 22% to 44%.
   Coming to think of it as a 360° marketing firm, traditional marketing worked wonders when digital
   transformation was a thing talked of as in the future. However, wouldn’t the brand tap every digital
   channel in this age, from YouTube ads to paid campaigns on FB, trending hashtags on Twitter, or
   video contests on IG reels and Influencer marketing- to communicate how they would be honored if
   the audience gave them another chance?
5. Traditional and digital channels
   The digital transformation era may have made it easier for brands to reach out and engage with their
   consumers directly, but the emotions remain unchanged for decades. And that is what worked the
   most for Cadbury.
   A year back when we were hit with a pandemic, and numerous versions of lockdown had impacted
   the economy, people from different strata of the society had a tough time juggling between their
   lifestyles and health safety. 2020 turned out to be a year when the world needed a high dose of
   generosity. This led to the brand launching a limited-edition CDM ‘Thank-you’ bars. To add to the
   generosity here, the choc-giant committed a part of the sale from these bars towards the health
   insurance policies of the daily wage earners. #SayThankYou was seen trending on social media
   channels during the lockdown. A report from Business Insider said that the company sold around 15
   million bars and sponsored health insurance for about 15,000 domestic workers after the
   campaign.

Going by the conventional way, we believe the brand would have launched an ad to portray the
challenges of frontline workers during the pandemic and made the audience aware of how their
families have been supportive and are managing in their absence.

Conclusion:
Typically, it is believed that consuming something sweet is comforting and is a mood lifter. And this is
something Cadbury’s marketing has always portrayed. Cadbury has never failed to reflect the
emotions of its audience thereby convincing them that it can be consumed by anyone, anywhere.
The campaigns have been effective through ages and different media and have a consistent message
for ALL age groups- someone who is with you through the ups and downs of life, helping you bounce
back.
Managing and controlling the brand was a priority then and is a priority now. The medium has
changed, and channels of communication evolved. But what remains unaltered is the brand’s
capability to grab and project the emotions to build brand, increase sales and manage reputation
even under crisis situation. Thats the power of Marketing.