Showing posts with label coke. Show all posts
Showing posts with label coke. Show all posts

28 February, 2022

Brands are timeless, Khans are not

If you have been following all the chatter on social media and top brand / advertising journals and magazines, the buzz is about the recent TVC feat. Shah Rukh Khan for Thums Up and the upcoming new TVC feat. Salman Khan for Pepsi. That the two have swapped their roles for their previously endorsed brands is one thing. But are they even relevant in today’s times is another. The last hit film of SRK was over 12 years back. I mean, a Box Office hit, that is. Salman, on the other hand is up with a new movie every 2 years for ID festival and gets attention across the world, though mostly from the hinterlands of India. While the collections in the first week of the film’s release have been ranging upwards of 100 Cr, 200 Cr & 300 Cr for Salman, that’s not the case for SRK, unfortunately. His core audience, the 90s kids are now having kids who are in their teens or twenties. The moustache-less handsome young man that SRK was faded away many moons back. His demeanour and confidence of Chak De! hasn’t been revisited by the ace actor ever after, for reasons best known to him.

So why would multi-nationals Pepsi & Coke risk their brand image with the Khans? 



After all, Brands are timeless but the Khans are not…



Ask any kid in their high school age group of today and there is a lean chance they would have watched DDLJ, HAHK or DTPH. If you are even wondering what these acronyms mean, you belong to a different era altogether. In the early to mid-90s, SRK endorsed Pepsi and took it across the country – from Board rooms to class rooms, office canteens to Tech Parks and beyond with his “Dil Maange more” campaigns alongside Sachin Tendulkar. On the other side, macho man Salman pounced with “Taste the Thunder” alongside ThumsUp, an Indianized cola drink which is supposedly more popular outside the metro cities. Over time, the two heroes and the other Khan, Mr. Perfect Aamir, endorsed the three cola brands including Coke among themselves. And then came the young crop of actors & sportsmen, mostly cricketers who took over and lead the campaigns.


In 2022, after many years of association with their preferred soft beverages, Salman and SRK have reversed their roles, moving in to the opposite camps, much to the surprise of their fans. The Ad-Industry and Brand veterans are divided in their views too. Salesmen of both companies are a confused lot, for having seen their current Brand Ambassadors in competitive camps earlier. The shopkeepers, mostly kirana owners are clueless how these things work. For the common people on the road, it’s yet another marketing gimmick by multinational companies spending crores of rupees to drive sales. 



The verdict is clearly divided.


Why would SRK, who has always been known for his soft image, even in his recent outings like “Love you Zindagi” portray a more mean image with his latest campaign? See the Ad here.

And with Antim, Salman proved to be the most macho among Bollywood heroes (perhaps after Dharam garam) and remains a bachelor at 57 years of age alongside SRK – yes, that’s correct. In 2025, they both would turn Senior Citizens! 


Why have the best of Marketing minds in Pepsi and Coke chosen this path? Have they run out of options in today’s sporting and entertainment fields? Absolutely not. Do they still believe SRK & Salman draw their own crowds and fan following? Perhaps yes. A big yes, at that. 



Salman’s fanbase is far wider than that of SRK’s. That could be a reason why Pepsi has now onboarded Salman, so they get to target the more mature audience, supposedly. On the other hand, SRK’s core fanbase has now entered their 40s and 50s, some in their 60s too. Perhaps, ThumsUp with Rum is a great combination. Also, ThumsUp could now be vying more familial attention. Maybe not. 


All said and done, Khans age, brands don’t. They will outlive this campaign anyway. 

01 July, 2019

Why Coke wants Coffee...


A budding second generation Entrepreneur started an Internet café in Bangalore’s iconic Brigade Road in the mid-90s with the unprecedented boom in consumers using the World Wide Web to communicate with each other besides knowing a bit more about the world on the other side. Those days, an hour of browsing the Internet would cost ₹100 and a cup of coffee, perhaps ₹10 or so. It’s no surprise the costs have reversed today. 
 


Cut to 2019, the same Entrepreneur is expecting a valuation of $1 billion for his coveted asset, Café Coffee Day which he has patiently and painstakingly built over the past 20 years. The café has over 1,700 cafes across India now including a few outlets abroad. I was privileged to work in this team a decade back for 2 years where my team and I went ahead to set up over 140 cafes across Airports, Metros, inside large Retail formats such as Wal-Mart, Shoppers Stop, Odyssey, at Hospitals, University campuses, Cinemas and even at Cricket Stadiums at Chennai and Kolkata during IPL Matches. The bidder for CCD this time is none other than Coca Cola Company, world leader in carbonated beverages who has also been in India for 2.5 decades.

Why does Coke want coffee? Because they see an untapped opportunity to reach out to the millenials in India who are among the largest of their ilk worldwide. Pepsi, on the other hand has a majority of its business coming from snacks and food while Coca Cola Company with its wide portfolio dominates the carbonated beverages market which has seen a shy growth in India, thanks to alternative beverages, let alone a few healthier options. CCD cafes interact with over an estimated 3,50,000 patrons a day with an estimated 100,000 bills daily (assuming an average 3 persons per bill). That’s over 1.2 billion times of engagement annually, something that Coca Cola Co. can do perhaps only online with constant advertising. 


A recent report published by Euromonitor states that the Indian Coffee Market was pegged at ₹2,500 crores as of 2018 and could double in the next 5 years. With cafes becoming the third and most preferred alternative place to hang around after home and work place, Indians are embracing coffee cafes and tea bars like never before. In the immediate past half decade, chains like Chaayos and Chai Point have gained much attention from Consumers as well as deep pocketed Investors. World’s biggest café chain Starbucks entered India a decade back in a JV with Tatas and has grown to over 150 cafes till now while others like CBTL and Café Pascucci left the market even as the homegrown Barista and British chain Costa have found a small niche for themselves. Interestingly, Coca Cola Co. bought Costa Coffee last year for $5 Bn while Nestle bough the distribution rights of Starbucks across Europe for over $7 billion in 2018.

Interesting times ahead for discerning Indian consumers. Would we see us drinking Coke and Fanta along with a Cappuccino at the neighborhood café or the Mall down the road? I don’t know yet. Interestingly, Sidhartha of CCD has refrained all along from selling carbonated beverages ever since the beginning. But the brand’s future could be different. We are now seeing Spicejet logo on the erstwhile Jet Airways’ crafts. Time will tell how this story spins out. And although it’s not in my plan today, I am already fixing my Auditor’s meeting at a CCD. For the love of the brand and their coffee.

31 October, 2014

Hate thread on McDonalds


Mc Donalds has been in India for over a decade and a half now and due to FDI regulations operates through two Franchise arrangements - with Cannaught Plaza Restaurants for North & East India and with Hardcastle restaurants for West and South India. Vikram Bakshi, the MD for Cannaught Plaza Restaurants has been locked in a legal battle for a little less than a year now and has pulled Mc Donalds to the Indian Courts and the case is only getting messier by the day with no sight of compromise or a solution between the two parties. Meanwhile, Hardcastle has been growing its number of stores and is expanding aggressively in the South, after covering West reasonably. After expanding across Mumbai, Bangalore and other key cities over the past 4-5 years, McD is now looking at growing across Chennai and the rest of Tamil Nadu. The high real estate rates is not helping them as well coupled with the availability of good quality locations along with a good fascade and parking facilities.  

Here is a video of how those insanely awesome French Fries or "taters" as they are famously known in the US are brought from farm to table, literally.



I recently spotted a new building coming up in South Madras, at Adyar just behind the famous Bus Terminus. It is a crowded neighborhood area and has a dozen or more famous restaurants and eating joints. I posted a pic of the upcoming building on Chennai Food Guide, a Facebook Community with over 40,000 members and is plannign a gala celebration of 10 years in Feb. 2015. The Group which mainly discusses about food across the city and its members reviewing restaurants every other day. Within seconds of my posting the pic, the post attracted a dozen or more "likes" and an equal number of brickbats from discerning reviewers, about the ill-effects of eating Burgers at McD. One person posted a pic of a bun with fungus and confessed that his trust in the brand was lost. Another conceded that she hates to go there but would eventually drop over due to the pestering of the little ones at home. And a few commented about their deteriorating service levels.


So, why is everyone hating McDonalds so much? Are they cooking and serving that real bad a food? Are there people dying because of consuming food at McD every year? Or is it just based on hearsay and random research? People are talking about how bad the ingredients that are used while cooking the food are to our health, which we all try to take as much care as possible. People are talking how bad the burgers are, mostly the chicken and lamb (McD doesn't serve Beef and Pork in India due to cultural reasons), not even sparing the greens which are apparently processed with chemicals. Interestingly, no one spoke about the ill-effects of Coke that we all gulp down along with the burgers. I know people who are so health conscious while eating out at Subway, but don't really mind the Coke that goes along. And the reused, recooked, refurbished food that we all consume from standalone restaurants to the best of Five Star Hotels - there was no mention of that. 

I recall an interesting article that appeared in the TIME Magazine a couple of months back. A Teacher from Iowa, USA ate at a nearby Mc Donalds outlet everyday for three months and lost 37 pounds while also lowering his cholestrol levels. He walked 45 minutes everyday along with his other day job. "Its our choices that makes us fat", John Cisna said, "Not Mc Donalds". Quite true. 


We all love our food. I have been living with a motto to live for eating for many years now. I believe one must eat well, sleep well and have fun with friends and family and that should alone be the reason of existence. Everything else such as making money, owning houses and material possessions and professional success is incidental. I am not really sure to say whether food at McD is bad for health or not. But I would trust their processes much more than indie restaurants. How many of you have been inside the kitchen of some leading restaurants in the city? Ask the owner or manager if you can take a pic and post it on Facebook - see how many agree. How many of you know that the kitchen staff use the same chopping board and knife many times to cut vegetables and chicken? How many restaurateurs here would raise their hand and accept that they do not provide healthy, fresh food, every day? So why this hypocrisy? Just because people around are making a nose about something doesn't mean we should join them too, mindlessly.

For me, I am really waiting for McD to open in my neighborhood, I would be one of their first customers probably. But yes, to overeat the patties, gulp coke, indulge in desserts and finally stuff myself with absolutely unhealthy food is a choice I have - to do or not.

PS: I am not a stooge by MCD or any other domestic or international chain - just another common man who loves his food which is everything vegetarian. 

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