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OPEN UP... I WRITE WHEN I LISTEN TO MY HEART...NO PHILOSOPHY...KEEP TALKING .... MONDAY, APRIL 24, 2006 Brand postioning & punchlines... Little did our Beloved "NETAJI" Subhash chandra Bose knew that when he requested his followers ‘Tum Mujhe Khoon Do, Main Tumhe Azaadi Doonga", he was actually marketing a product that is’FREEDOM’ with this Punchline. In the process an old women donated all the jewellery she had for the cause of freedom even when she had lost her only child in the battle of freedom, to ‘Netaji’ only due to the powerful oratory of the great leader. Such is the impact of words. Marketers also know the importance of powerful words and use them as ‘Punchlines’for their product/brand endorsements. Although the Punchline as a marketing tool comes under Advertising which itself comes under the ‘Promotion’ of Marketing Mix. But there is a strong need of paying special attention to these One-liners or Punchlines or Ad slogans. POSITIONING Subroto Sengupta in his book ‘Brand Positioning’ has defined the concept of positioning as: The Position of a brand is the perception it brings about in the mind of a target customer. This perception reflects the essence of brand in terms of its functional and non-functional benefits in the judgment of that customer. It is relative to the perception, held by that consumer, of competing brands, all of which can be represented as points or

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OPEN UP... I W R I T E W H E N I L I S T E N T O M Y H E A R T . . . N O

P H I L O S O P H Y . . . K E E P T A L K I N G . . . .

M O N D A Y , A P R I L 2 4 , 2 0 0 6

Brand postioning & punchlines...

Little did our Beloved "NETAJI" Subhash chandra Bose knew that when he requested his followers ‘Tum Mujhe Khoon Do, Main Tumhe Azaadi Doonga", he was actually marketing a product that is’FREEDOM’ with this Punchline. In the process an old women donated all the jewellery she had for the cause of freedom even when she had lost her only child in the battle of freedom, to ‘Netaji’ only due to the powerful oratory of the great leader. Such is the impact of words.

Marketers also know the importance of powerful words and use them as ‘Punchlines’for their product/brand endorsements. Although the Punchline as a marketing tool comes under Advertising which itself comes under the ‘Promotion’ of Marketing Mix. But there is a strong need of paying special attention to these One-liners or Punchlines or Ad slogans.

POSITIONING

Subroto Sengupta in his book ‘Brand Positioning’ has defined the concept of positioning as:

The Position of a brand is the perception it brings about in the mind of a target customer. This perception reflects the essence of brand in terms of its functional and non-functional benefits in the judgment of that customer. It is relative to the perception, held by that consumer, of competing brands, all of which can be represented as points or positions in his or her perceptual space and together, make up a product class. In short ‘position’ represents the whole or overall perception of that brand in that consumer’s mind and it is always a relative concept.

Perhaps Charles Mittelstadt has defined ‘Positioning’ more accurately as "Positioning refers to how you want your brand

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‘thought about’ in connections with competitors in its product category. It needs to be specific to your brand aimed at a specific target audience."

This definition clearly states the importance of ‘Positioning’ for the success of any brand. It is like that indispensable vitamin to the body without whose the body will collapse. So ‘Positioning’ can make or break a brand. Therefore, a confused ‘Positioning’ can simply kill the brand. A clear ‘Positioning’ will always be one of the success factor. This is the place where Punchline comes into act. If you have to Position your brand perfectly in the mind space of the customer, your Punchline must be so accurate and appealing that it neither erases from the mind nor can be replaced by any other competing brands Punchline.

EXAMPLES SHOWING RELATIONSHIP BETWEEN POSITIONING AND PUNCHLINE

Let us have a look into some of the famous Punchlines both in International and Indian markets and how does they respond to their ‘Positioning’.

IBM ThinkPad----- " I think, therefore IBM"---- Here IBM tries to say that if you have the capacity to think then you should go for IBM ThinkPad, the Punchline exactly conveys the message.

Nike ----- "Just do it" ---- There is no other better way to boost the self-confidence the way Nike has put through their famous Punchline. Thus the ad line simply communicates that using Nike can improve your performance by enhancing the self-confidence.

Adidas ------ " Forever Sport"----- They wanted to say that whenever you think of sports think Adidas. The Punchline perfectly associates Adidas and Sports.

7-up ----- "The Uncola"---- Perhaps the most talked about Punchline, it gave the brand a distinctive image in the mindspace of soft drink customers.

American Express ---- "Don’t leave home without it" ------The Punchline has made the card an essentiality of lifestyle. Thus the card directly made a safe place in the wallet of the customer for always.

Heinz Baked beans ----- "Beanz Meanz Heinz"-------The catchy, peppy punchline is easy to settle into the brain. People can easily relate

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beans to Heinz.

Philips ----- "Lets make things better" ----- Philips wanted its customer to appreciate the quality of the product, which the Punchline defines accurately.

Polaroid ----- " We don’t have negatives" ---- The Punchline itself was boasting about the uniqueness of the product, which the company was trying to position.

Crest -------- " Look, Ma, no cavities" ----- The Punchline reflects the emotional relationship between mother and children along with the basic benefit. That’s what every mother wants to hear from her child. Perfectly positioned and perfectly communicated. 10) Esso ----- " Put a tiger in your tank" ---- The tiger represents ‘power’ and ‘strength’. Esso wants to deliver these benefits to its consumer and accordingly positioned its products which were evident from the Punchline.

Lets have a look at the national front

1) Pepsi--- "Yeh dil maange more"-----Such was the effect of this punchline that an Indian army captain after winning a battle proudly yelled "Ye dil maange more".What drives us to buy pepsi or Coke? these punchlines.

Raymond ---- "The Complete man"--- The Punchline gives the notion that man is not complete unless he wears Raymond. The possession of Raymond is kind of status symbol, the status of acquiring manhood.

Coca Cola ---- " Thanda Matlab Coca Cola" ----- People in India generally refers cold drinks as ‘thanda’. So Coke wanted to give an impression that whenever a customer think of ‘Thanda’ he should think of Coca Cola. So the Punchline makes ‘Thanda’ equal to Coca Cola.

Birla Mutual Fund ----- "The name inspires Trust" ----- Trust is the basic platform on which mutual fund business works. An investor will invest only in that company in which he has confidence and trust. So the Punchline was directed towards Trust building.

Last but not the least

Wills Navy Cut ----- " Made For Each Other" --- The Punchline brings about the brand loyalty by making the customer and the brand too

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close to each other. It suggests that both the entities complement one another.

Most of the above mentioned ad lines are award winners just for the simple fact that they conveyed their brand’s positioning dead accurately.

BRAND IMAGE AND PUNCHLINES

Brand image can be defined as the characteristics and attributes perceived of a brand by a customer. Different consumers may have different brand images for a same brand. Brand image includes all the properties of the brand. Brand personality and brand image are more or less similar but the only difference is that brand personality is much more oriented towards the emotional aspect of the brand. Brand image helps the customer to personify a brand. Consumers always perceives brand as a human being, which has certain values, beliefs, attitudes and characteristics apart from its functional and non-functional benefits.

Taking leverage of this point Marketers appoint Brand Ambassadors for their strategic or Mega brand. For example Rajdoot Motorcycles tried to position itself as a macho man and accordingly appointed film star Dharmendra to endorse the motorcycle. Again ICICI appointed Amitabh bachchan as their Brand Ambassador for the credibility image. The Punchline must also support the image of the Brand Ambassador; point is, the Punchline must synchronize with it. A famous example is Sachin Tendulkar’s association with Visa card. The Punchline was ‘Go get it". As Sachin is a ‘go getter’, never afraid of any circumstances and gives 100% performance, so the Brand image of Visa card was totally in tandem with the image of Sachin and the Punchline depicts the same thing. Thus we can safely conclude that Punchline is the Bridge between Positioning and Brand image.

IMPORTANCE OF PUNCHLINES AND WHEN THEY ARE USED

It is very difficult to find out the right Punchline. Marketers have to select right words to form that sentences which can correctly express the positioning strategy of the brand. A bad Punchline can kill a good ‘ad’. For example the recent global ad of McDonalds, the ad line is " I’m lovin it" sung by N-sync guy Justin Timberlake. Critics are simply asking the relationship between Positioning and Communication.

When a Marketer launches any new brand, the general idea is that

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initially he has to increase the awareness among the consumers by differentiating it from the offerings of the existing competitors or differentiating it from the same need fulfilling products. For that he has to convey his USP in its Positioning. The most basic job of a Punchline is to carry this USP along with it. Consumers must be able to figure out the USP from the Punchlines.

Also whenever Marketers reposition a brand, Punchlines play a major role in it. It acts through the concept of Kurt Lewin’s change model theory.

At first the customer possess certain beliefs about the values, attributes and benefits about the brand, which may not be satisfactory. A perfect repositioning Punchline instigates the consumer to ‘unfreeze’ that behavior and makes him ready to change. If the Punchline strikes him as attractive due to repeated exposure it ‘changes’ the mindset of the customer creating new set of beliefs. Then due to consistency or when the benefits of the product match with the new expectations, which has been imbibed by the new Punchline, this new behavior ‘freezes’.

It really needs lots of strategies to build up an accurate and catchy Punchline to set the Positioning of the brand in the mind space of the customer. The Punchline represents the values of the company, benefits, attributes, features, quality, cost, special technology and last but not the least the ‘ USP’. If we really want to appreciate the value of Punchlines, then imagine an advertisement without any Punchline. It looks like a dumb. So basically the Punchline is the voice of the brand, which primarily gives out the minimum momentum, thrust or impetus to push the brand in the mind of the customer. Is Punchline the 5th ‘P’ of the Marketing mix?"

[

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The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

BRAND YATRA

Brand Yatra: CEAT Tyres - From 'born tough' to contemporaryLaunched in 1958 in India, CEAT Tyres has been able to hold its own over the years. Having established itself in the consumers’ minds for years with its tagline ‘Born Tough’, the tyre manufacturer has now gone all contemporary and adopted a new logo, which means the good old ‘rhino’ has trotted off somewhere. Interestingly, CEAT is now more associated with its

popular CEAT Cricket Ratings. more...

- Brand Yatra: From Hungry to Happy – Domino’s continues to deliver - Brand Yatra: A McDonald’s in every neighbourhood... well almost - Brand Yatra: From ‘Fresh ‘n’ Juicy’ to ‘Why grow up’, Frooti goes the mango way - Brand Yatra: Godrej – Successfully straddling the old and the new

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RANBAXY LABORATORIESType: PublicOn the web: http://www.ranbaxy.comEmployees: 12,995Employee growth: 6.7%

Ranbaxy Laboratories is quite the rainmaker in India's pharmaceutical business. The company is India's largest drug manufacturer, as well as a top global generics producer. Anti-infectives amoxycillin and ciprofloxacin, and cardio drug simvastatin are among Ranbaxy's top sellers; all come in several administration forms. The company also addresses gastrointestinal, musculoskeletal, and central nervous system disorders, as well as diabetes, pain, allergies, and HIV/AIDS. Its R&D focus includes new forms of existing drugs and metabolic disease treatments. The company also has a groundbreaking anti-malarial candidate in late-phase trials. Japanese drugmaker Daiichi Sankyo owns a controlling stake in Ranbaxy.

Key numbers for fiscal year ending December, 2009: Sales: $1,619.7MOne year growth: 71.6%Net income: $63.2M

Officers:Chairman: Tsutomu UneCEO and Managing Director: Atul SobtiPresident and CFO: Omesh Sethi

Competitors:ActavisSandoz International GmbHTeva Pharmaceuticals

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The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

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Incorporated: 1962NAIC: 325412 Pharmaceutical Preparation Manufacturing; 325411 Medicinal and Botanical Manufacturing; 325620 Toilet Preparation Manufacturing

Ranbaxy Laboratories Ltd. is the largest pharmaceutical company in India, and one of the world's top 100 pharmaceutical companies. Long a specialist in the preparation of generic drugs, Ranbaxy is also one of the world's top 10 in that pharmaceutical category as well. Yet, with India's agreement to apply international patent law at the beginning of 2005, Ranbaxy has begun converting itself into a full-fledged research-based pharmaceutical company. A major part of this effort has been the establishment of the company's own research and development center, which has enabled the company to begin to enter the new chemical entities (NCE) and novel drug delivery systems (NDDS) markets. In the mid-2000s, the company had a number of NCEs in progress, and had already launched its first NDDS product, a single daily dosage formulation of ciprofloxacin. Ranbaxy is a truly global operation, producing its pharmaceutical preparations in manufacturing facilities in seven countries, supported by sales and marketing subsidiaries in 44 countries, reaching more than 100 countries throughout the world. The United States, which alone accounts for nearly half of all pharmaceutical sales in the world, is the company's largest international market, representing more than 40 percent of group sales. In Europe, the company's purchase of RPG (Aventis) S.A. makes it the largest generics producer in that market. The company is also a leading generics producer in the United Kingdom and Germany and elsewhere in Europe. European sales added 16 percent to the company's sales in 2004. Ranbaxy's other major markets include Brazil, Russia, and China, as well as India, which together added 26 percent to the group's sales. Ranbaxy posted revenues of $1.18 billion in 2004. The company, which remains controlled and led by the founding Singh family, is listed on the National Stock Exchange of India in Mumbai.

Ranbaxy Laboratories had its origins in the early 1960s when Ranjit Singh and Gurbux Singh, two employees of a Japanese pharmaceutical company operating in India, formed their own pharmaceutical preparations company in Amritsar, in Punjab state. The two merged their names to form the name for their company, Ranbaxy.

Through the 1960s, India's pharmaceutical market remained dominated by foreign drug makers. The domestic pharmaceutical manufacturing industry was limited in large part to the dosage preparation, packaging, and distribution of existing formulations. Like many Indian drug companies of this period, Ranbaxy linked up with a European pharmaceutical company, and

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The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

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began production in 1962.

Ranbaxy's owners sought additional financing and turned to a local moneylender, Bhai Mohan Singh. By 1966, the pair had built up debts to Singh of more than the equivalent of $100,000. When Singh, a native of Pakistan who had arrived in India at the beginning of that decade, came to collect, the Ranbaxy partners offered to turn over their company to him instead.

Singh agreed to the deal and launched the Ranbaxy family on the path toward building one of India's largest business empires. Under Bhai Mohan Singh, Ranbaxy initially maintained its course of preparing and packing existing branded pharmaceutical products for the Indian market. The entry of Singh's eldest son, Parvinder, into the company in 1967, however, set the company on a new course to become a fully independent pharmaceutical company.

Parvinder Singh had just graduated with a PhD in chemistry from the University of Michigan. The younger Singh's background in chemistry complemented his father's business flair. Yet Parvinder Singh himself quickly displayed a talent for business and was credited, in large part, with guiding the company into the ranks of the global pharmaceutical leaders.

Ranbaxy's good fortune came in 1970, when the Indian government passed legislation that effectively ended patent protection in the pharmaceutical industry. Indian pharmaceutical manufacturers were now able to produce low-cost, generic versions of popular, yet expensive drugs, revolutionizing the drug industry in India and in much of the world. The Singhs quickly took advantage of India's large, highly trained, yet inexpensive workforce, building up a strong staff of chemists and chemical engineers.

The company struck pay dirt early on, when it launched Calmpose, a generic formulation of the hugely popular Roche discovery, Valium. Released in 1969, Calmpose immediately placed Ranbaxy on India's pharmaceutical map. The company expanded quickly, and by 1973, Ranbaxy opened a new factory, in Mohali, for the production of active principal ingredients (APIs). This facility enabled the company to expand its range of generic medications and ingredients. To finance its growth, the company listed on the Indian Stock Exchange that year.

Ranbaxy's ability to produce generic medications at far lower cost than its branded competitors placed the company in a strong position for international expansion, especially in less developed markets. The company began its internationalization early on, launching a joint venture in Nigeria. That operation opened a production facility in Lagos in 1977.

Ranbaxy expanded its production at home as well, opening a new state-of-the-art dosage plant in Dewas in 1983. In 1987, the company became India's leading antibiotic and antibacterial producer when it completed a new API plant in Toansa, in Punjab, that year. The Toansa facility backed up Ranbaxy's plans to enter the U.S. market, and in 1988, the Toansa plant received Food and Drug Administration (FDA) approval.

Ranbaxy formulated a new strategy, that of becoming a full-fledged pharmaceutical company. The driving force behind the company's new direction was Parvinder Singh, who was named the

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The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

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company's managing director in 1982. Nonetheless, Bhai Mohan Singh remained in control of the company.

As part of its new strategy, Ranbaxy launched its own research and development center in 1985. The company also stepped up its marketing efforts, launching a new dedicated marketing subsidiary, Stancare, that year. By 1990, the company had a new product to sell, when Ranbaxy was granted a U.S. patent for its doxycycline antibiotic preparation. The following year, the company was granted a U.S. patent for its cephalosporin preparations, and the company built a new state-of-the-art facility for their production in Mohali.

A major milestone for the company came in 1992, when it reached a marketing agreement with Eli Lilly & Co. The companies set up a joint venture in India to produce and market Lilly's branded pharmaceuticals for the domestic market. At the same time, Lilly agreed to begin marketing Ranbaxy's generic medications in the United States. In this way, Ranbaxy gained widescale access, backed by the highly respected Lilly, into the world's single largest drugs market.

Parvinder Singh took over as head of the company--ousting his father in what was described as a family feud--in 1992. By then, Ranbaxy had grown into one of India's largest pharmaceutical companies on the basis of its generics production. Yet as pressure grew on India to begin enforcing international drug patents, the company itself appeared to have reached a crossroads--whether to remain focused on copying generic molecules, or to begin developing new drugs in-house. The company chose the latter, and in 1993 adopted a new corporate mission to announce its reformulated ambitions: "To become a research-based international company."

Ranbaxy made good on its mission--by the middle of the next decade, nearly 80 percent of its sales came from outside of India. As a first step, the company launched a new joint venture, in China, backing its entry into that market with a production facility in Guangzhou. The following year, the company established subsidiaries in London, England, and in Raleigh, North Carolina. In 1995, the company stepped up its U.S. presence with the purchase of Ohm Laboratories Inc., which gave the company its first manufacturing plant in that market. Ranbaxy then launched construction of a new and state-of-the-art manufacturing wing, which, completed that year, gained FDA approval

Ranbaxy also sought new alliances, and in 2003 the company reached a global drug discovery and development partnership with GlaxoSmithKline. That agreement called for Glaxo to handle the later-stage development process for Ranbaxy created molecules. The company's international expansion also took a major step forward at the end of 2002, when it agreed to acquire RPG (Aventis) in France, that country's leading generic drugs producer.

Ranbaxy's sales had by then topped the $1 billion mark, placing the company not only as the leader in India's pharmaceuticals industry, but also among the ranks of the world's top 100 pharmaceuticals companies. Ranbaxy also boasted a place among the world's top ten generic drugs producers. In addition, the company had advanced a growing number of its own NCE and NDDS molecules into clinical testing. The company's transition into research-based product

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The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

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development was seen as crucial as India announced its intention to enforce international drug patents at the beginning of 2005.

Ranbaxy appeared prepared to meet this challenge, however, and confidently set its sights on boosting its annual sales past $2 billion by 2007 and to more than $5 billion by the beginning of the next decade. International growth remained an essential part of that strategy. The company began negotiations for a major acquisition in Germany at the end of 2004, which was expected to be completed in 2005. The company also launched construction of a new $100 million production facility in Brazil. Meanwhile, Ranbaxy continued to increase its research and development budget, with the goal of generating as much as 40 percent of its revenues from its in-house innovations by the 2010s. Ranbaxy expected to remain India's drug leader into the new century.

Principal Subsidiaries

Basics GmbH (Germany); Gufic Pharma Ltd. (98%); Ohm Laboratories Inc. (United States); Ranbaxy (Hong Kong) Ltd.; Ranbaxy (Malaysia) Sdn. Bhd. (56.25%); Ranbaxy (Netherlands) B.V.; Ranbaxy (S.A.) Proprietary Ltd.; Ranbaxy (UK) Ltd.; Ranbaxy Do Brasil Ltda.; Ranbaxy Drugs and Chemicals Company; Ranbaxy Drugs Ltd.; Ranbaxy Egypt Ltd.; Ranbaxy Europe Ltd. (United Kingdom); Ranbaxy Farmaceutica Ltda. (Brazil; 70%); Ranbaxy Fine Chemicals Ltd.; Ranbaxy France SAS; Ranbaxy Ireland Ltd.; Ranbaxy Nigeria Ltd. (84.89%); Ranbaxy Panama, S.A.; Ranbaxy Pharmaceuticals Inc. (United States); Ranbaxy Poland Sp. z.o.o.; Ranbaxy PRP (Peru) S.A.C.; Ranbaxy Unichem Company Ltd. (Thailand; 88.56%); Ranbaxy USA, Inc.; Ranbaxy Vietnam Company Ltd.; Ranbaxy (Guangzhou China; 83%); Ranbaxy, Inc. (United States); Ranchem Inc. (United States); Ranlab Inc. (United States); RanPharm Inc. (United States); Rexcel Pharmaceuticals Ltd.; Solus Pharmaceuticals Ltd.; Unichem Distributors (Thailand; 99.96%); Vidyut Investments Ltd.; Vidyut Travel Services Ltd.

Principal Competitors

Principal Competitors

RPG Enterprises; GlaxoSmithKline Consumer Healthcare Ltd.; East India Pharmaceutical Works Ltd.; Dr. Reddy's Laboratories Ltd.; Cipla Ltd.; Concept Pharmaceuticals Ltd.; Khandelwal Laboratories Ltd.; Dabur India Ltd.

Ranbaxy Laboratories Limited is India's largest pharmaceutical company. Incorporated in 1961, Ranbaxy exports its products to 125 countries with ground operations in 46 and manufacturing facilities in seven countries. The company went public in 1973, and Japanese company Daiichi Sankyo gained majority control in 2008.[1]

Atul Sobti is currently Ranbaxy CEO and Managing Director,[2] having taken over from Malvinder Singh in May 2009

H I S T O R Y

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The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

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Formation

Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a portmanteau word from the names of its first owners Ranbir and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir Singh and Gurbax Singh. After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw a significant transformation in its business and scale. His sons Malvinder Mohan Singh and Shivinder Mohan Singh sold the company to the Japanese company Daiichi Sankyo in June 2008.

Trading

In 1998, Ranbaxy entered the United States, the world's largest pharmaceuticals market and now the biggest market for Ranbaxy, accounting for 28% of Ranbaxy's sales in 2005.[citation needed]

For the twelve months ending on 31 December 2005, the company's global sales were at US $1,178 million with overseas markets accounting for 75% of global sales (USA: 28%, Europe: 17%, Brazil, Russia, and China: 29%). For the twelve months ending on December 31, 2006, the company's global sales were at US $1,300 million.

Most of Ranbaxy's products are manufactured by license from foreign pharmaceutical developers, though a significant percentage of their products are off-patent drugs that are manufactured and distributed without licensing from the original manufacturer because the patents on such drugs have expired.

In December 2005, Ranbaxy's shares were hit hard by a patent ruling disallowing production of its own version of Pfizer's cholesterol-cutting drug Lipitor, which has annual sales of more than $10 billion.[4] In June 2008, Ranbaxy settled the patent dispute with Pfizer allowing them to sell Atorvastatin Calcium, the generic version of Lipitor(R)and Atorvastatin Calcium-Amylodipine Besylate, the generic version of Pfizer's Caduet(R) in the US starting November 30, 2011. The settlement also resolved several other disputes in other countries.[citation needed

On 23 June 2006, Ranbaxy received from the United States Food & Drug Administration a 180-day exclusivity period to sell simvastatin (Zocor) in the U.S. as a generic drug at 80 mg strength. Ranbaxy presently competes with the maker of brand-name Zocor, Merck & Co.; IVAX Corporation (which was acquired by and merged into Teva Pharmaceutical Industries Ltd.), which has 180-day exclusivity at strengths other than 80 mg; and Dr. Reddy's Laboratories, also from India, whose authorized generic version (licensed by Merck) is exempt from exclusivity.

On 16 September 2008, the Food and Drug Administration issued two Warning Letters to Ranbaxy Laboratories Ltd. and an Import Alert for generic drugs produced by two manufacturing plants in India.[5]

On 10 June 2008, Japan's Daiichi Sankyo Co. agreed to take a majority (50.1%) stake in Ranbaxy, with a deal valued at about $4.6 billion. Ranbaxy's Malvinder Singh will remain CEO

Report a problem Email this page

The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

Page 14: Ads

after the transaction. Malvinder Singh also said that this was a strategical deal and not a sell out.[6]

On February 25, 2009 the U.S. Food and Drug Administration said it has halted reviews of all drug applications including data developed at Ranbaxy's Paonta Sahib plant in India because of a practice of falsified data and test results in approved and pending drug applications. "Investigations revealed a pattern of questionable data," the FDA said.[7][8]

Fanta: Sending out 'signals' to the youthKhushboo Tanna | afaqs! | Mumbai, May 08, 2009

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Genelia D’Souza, best known as the cricket commentator in the Fair & Lovely advert of yesteryears, suddenly found

herself as a youth icon with her blockbuster hit ‘Jaane Tu Ya Jaane Na’ in 2008. Like it usually happens to overnight

stars, brands flocked to her doorstep with pens in hand, ready to sign her on. As a result, D’Souza’s current portfolio

of brands includes Perk and Perk Poppers, Spinz (Deo and Talc), Vatika and Fanta (Apple and Orange).

The young actor, now in her 20s, joins the rung of young stars such as Ranbir Kapoor, Deepika Padukone and Imran

Khan, who charge anywhere between Rs 1 crore and Rs 4 crore per endorsement deal.

Report a problem Email this page

The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

Page 15: Ads

Among some of the latest ads featuring D’Souza is the latest Fanta ad, which

also plays around with a new punch line. Fanta has tried to appeal to the

youth since its inception in the Indian market in 1993.

Now, Fanta has launched a new campaign with actor Genelia D’Souza trying

to bail out her friends from boring social situations such as a family dinner or a

boring date. Her signal of choice to help her friends escape is the Fanta

bottle.

The ad has been conceptualised by Ogilvy India and has been directed by

Kaushik Sarkar of Apostrophe Films. The film has been shot in two days in

Mumbai.

Tagline spree

The new campaign also ushers in a new tagline for Fanta: ‘Fanta ka signal

loud, Bunking is allowed’. Fanta has, over the years, used a number of

taglines that reinforce its position as a drink for the young generation.

One of the earliest taglines adopted by Fanta was

‘Masti ka apna taste’, which was followed by ‘Anything

is possible’. Next in line was ‘Bold Orange Fun’, which

soon gave way to ‘Bajao Masti ki Ghanti.’ Then, there was a statement specifically for the

South Indian market, ‘Freshness means Fanta’.

Fanta then sported ‘Rang Le, Dil Khol Ke’ for three years before moving on to ‘Masti Ka

Chataka’. After that, it was ‘New Orangy Blast…Laga Kya?’ as Fanta had made some changes

in the formulation (and hence, its taste). Finally, this one has been dropped in favour of the

current one on ‘Bunking’.

On the frequent tagline changes, Ajay Gahlaut, group creative director, Ogilvy India, says that

the core of Fanta hasn’t altered: it has always been centred on fun. With the latest one in the

list, the same positioning has been taken a step ahead. “The youth’s idea of fun is going

against the norm or going against the establishment. In their lingo, the one word that

encapsulates this phenomenon is ‘Bunk’,” he says.

Srinivas Murthy, general manager, flavours, Coca-Cola India, justifies the new thought, saying

that after Fanta Apple was launched, Coca-Cola India wanted to reinforce the core brand

identity with the youth through Fanta Orange. “The insight was that the youth often feel suffocated under societal and

authoritative pressures and want to occasionally break free,” he adds.

Endorsement is allowed

Fanta recently roped in Genelia D’Souza to endorse both the flavours from the Fanta stable (Apple and Orange). Prior

to D’Souza, South Indian actor Trisha endorsed Fanta for a year. Trisha had replaced Rani Mukherji, who had

endorsed the brand for three years during 2003-06, while actor Simran endorsed the brand for the South Indian

market for two years (2002-04).

Report a problem Email this page

The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

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Page 16: Ads

The latest ad opens on the shot of a huge bottle of Fanta placed outside a canteen, behind which the mischievous

D’Souza and her bunch of friends are waiting to bail out their friends from boring situations. In one instance, they walk

into a restaurant as musicians to help one of their friends escape a boring date.

In another situation, during a family dinner, D’Souza, along with her friends, try to draw the family's attention by

making scary shadows outside the window so that their friend can sneak out. In all these cases, the signal to her

friends is the sound made by using the Fanta bottle.

The campaign will have a presence across all media such as television, print, outdoor and radio. The jingle will be

leveraged on radio and there will be on-ground programmes as well.

The music has been given by R Anandh, who has given the music for the Limca ad and the Sprite Express film.

Is the signal loud enough?

afaqs! spoke to people from the industry to find out whether they heard Fanta’s new signal loud and clear, or would

prefer to ‘bunk’ the advertisement on TV.

Pinaki Bhattacharya, senior vice-president, strategic planning, Saatchi & Saatchi, shares his first reaction after seeing

the ad: that youth today don’t wait to be ‘allowed’ to bunk - they will bunk if they feel like it,

whenever they feel like it. So, in a sense, the starting point itself leaves a lot to be desired. He

adds that the TVC falls prey to the classic trap of finding two rhyming words to sign off – in

this case, ‘loud’ and ‘allowed’.

However, Bhattacharya adds that the positive aspect is the casting of D’Souza, as she is the

current bubbly flavour in Bollywood.

Similarly, Rohit Malkani, executive creative director, Grey India, is enthused about the

endorser and feels that her full of life persona in the recent hit ‘Jaane Tu Ya Jaane Na’ shines

through in the ad as well. “That’s how viewers will remember her, like she's overdosed on

Duracell batteries,” quips Malkani.

However, he feels that some of the situations are contrived and corny, especially the dining

room situation. “Somehow, I get an overriding picture of a TVC trying desperately hard to be

‘happy, happy, happy’, rather than be spontaneous,” he says.

Malkani, though, is not sure how this ‘bunking’ platform can sustain the brand for long.

On the sunnier side, Anil Kakar, executive creative director, IBD, states that being young is all

about throwing caution to the winds, about freedom, attitude and perhaps, even mild rebellion.

“The commercial encapsulates all of these youthful qualities and connects with the youth in a

unique manner,” he allows.

Further, Kakar also appreciates that the ad attempts to create a brand property through a new

code language among the youth with the line ‘Fanta ka signal’, which has “the potential for an

extendable campaign idea.”

© 2009 afaqs!

Report a problem Email this page

The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

Page 17: Ads

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Message & Media Strategy

An effective communication campaign should comprise of a well thought out message strategy. What

message are you trying to put across to your target audience? How will you deliver that message?

Will it be through the appropriate use of branding?

Advertising is a big business in this era in India. Indian Advertising industry has witnessed a prominent globalisation. With the inception of various divisions,the advertising industry has undergone a sea change. Indian consumer's deepening pocket and blooming markets for ad-spends have touched new heights in India. The Indian Advertising Companies are creating stories and brand experiences in a way that engages and involves. The Best Indian sites offers the names of the top Advertising Organizations In India.

An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for its clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An agency can also handle overall marketing and branding strategies and sales promotions for its clients.

Typical ad agency clients include businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce an advertising campaign.

Advertising is a non-personal form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideals, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These brands are usually paid for or identified through sponsors and viewed via various media. Advertising can also serve to communicate an idea to a mass amount of people in an attempt to convince them to take a certain action, such as encouraging 'environmentally friendly' behaviors, and even unhealthy behaviors through food consumption, video game and television viewing promotion, and a "lazy man" routine through a loss of exercise . Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Mass media can be

Report a problem Email this page

The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

Page 18: Ads

defined as any media meant to reach a mass amount of people. Several types of mass media are television, internet, radio, news programs, and published pictures and articles.[1]

Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail; or new media such as websites and text messages. Advertising may be placed by an advertising agency on behalf of a company or other organization.

Non-commercial advertisers that spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement.

Report a problem Email this page

The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.

Page 19: Ads

Report a problem Email this page

The rural market is going to be the main focus of LG for 2004. Since we intend to be very active in the rural market, we have set a target of 70% value growth. So the target is Rs. 7,000 crores. We think the rural market contribution will be around 65% and the growth over this year on the rural market will be something around 40%.

Anil Arora, Head (Marketing), LG Electronics

After working in Eureka Forbes for three years, Anil Arora joined BPL Sanyo as Asst. Sales Manager, looking after direct marketing for vacuum cleaners. After the company merged with BPL in ‘93, he took charge of microwave ovens and gas tables in Delhi; the next stop was Head of Sales, Punjab, HP, Chandigarh and J&K, before he left BPL to join the 5,000-cr Korean consumer durable major – LG.

A strong believer in ‘feet marketing,’ within two years Anil moved on to Asst. GM and later shifted to the corporate headquarters at Noida where he took over as Product Group Head-refrigerators, finally moving on to Head (Marketing), LGEIL. In a chat with Jasmeen Dugal at LG’s Greater Noida plant, Anil Arora shares some details on the new brand positioning, the company’s aggressive strategy to strengthen reach in rural India and more.