Thums Up

Brand audit

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 THUMS UP STRATEGY

Thums up doesn’t have published brand strategic plan. The company published its annual report consolidating its entire product and published specialized brand in each country, Eg: coke in china, Thums up in India under concentrated cola drink category.

Ø  Thumps up picture determines the product as a masculine drink. The concentration level in the drink is high comparatively in the market.

Ø  As coke and Pepsi positioned themselves as drink for Happiness, for Food and drink for quenching thirst, Thums up positioned themselves a Drink for people who have no fear towards their attitude.

Ø  The logo and the slogan were same since 1977. This history add value to Indian heritage, the brand gain value “The only Indian brand which competes global market”.

Ø  The tag line “Taste of thunder” pushes the product in consumers mind. Consumers feel that the Name and Tag line of the product is catchy and add value of “macho” to the product.

The brand got very good reorganization in the market. The market can recognize the product and its elements. But Consumers who prefer Thums up is not as much as consumers prefer coke and Pepsi. This is because their position strategy is different. They didn’t position Thums up for day to day people’s life. The advertisement and campaign made a mindset among consumer that the product is for adults, Men and who feels macho in their character. This pulls down market share of women and kids.

Positioning of the brand:

                                               

Our brand Thums up has been positioned in the market among other carbonated drinks like coke and Pepsi. Since this comes under the carbonated drinks category It can also compete with other regional brands in the carbonated soft drink category.  The regional brands who share the same market space are Kalimark’s Bovonto. Compared to the local brands available Thums Up holds most of the market share. Even though this brand is positioned only for the Indian market its is positioned equally to its global competitors like Pepsi and brands from its own family like coke, diet coke and zero coke.

Target markets:

The market segment for our particular brand are segmented based on various bases like behavioral, demographic, psychographic, geographic, nature of goods and buying conditions.

Based on behavioral aspects, our brand is mainly positioned for action oriented people who associate themselves with the drink through excitement they experience. When we segment our consumers under the age and sex categories it is positioned as a masculine drink with age group covering from 15 to 40.

Other ways of segmenting our customers are based on their attitude, lifestyle and activities which can segment it more towards action and thrill seeking people.

Competitors:  The brands competition mainly comes from Mountain Dew, Coke, and Pepsi. The regional competitors are Bovonto which is not much of a competition with Thums Up. The brand holds a lot of parities among their competitors like color, Target customers, bottling styles and when we consider the points of differences taste, advertisements, and image of the brand are the major differences. The Brand Mantra which attracts most of its consumers and gives it a distinct point of difference is “Taste the Thunder” which has a unique jingle to it which adds to its popularity.

Suggestions for better positioning:

Under the current positioning of our brand Point of parities are more than the points of differences. So the brand to attain a better positioning it can be made more transferable and adaptable. To achieve this, the brand mantra can be adapted to suit for the competition, which covers more family audience.

Ø  BRAND NAME & LOGO: The symbol thumps Up show a meaning for victory and challenge. The brand Thums Up is positioned as drink for people who face challenge and people who want to be action in their attitude. The name is catchy and conveys the followed meaning which attracts adults.

Ø  SLOGANS: The tag line “TASTE OF THUNDER” position Thums Up as energetic drink for modern adults. The Name, Logo, and slogan goes together to position the brand easily among the consumers. As the name of the brand, the product is much concentrated and got different taste.

Ø  BRAND AMBASSADOR: Akshay Kumar who’s seen as action star in Bollywood endorses Thums Up in the advertisement. The company made sure that the product should be unique in all aspects when compared to market and made all the elements interlinked.

Ø  HERITAGE DRINK: Thums up got a history of 33 years in Indian market. The drink is supposed to be an Indian heritage drink. This fact makes the drink pride among Indians. It’s also noted that, Thums Up is the only Indian drink that competes global market. These brand elements make a personal bond between the product and Indian consumer. 

The current marketing programs are like the 4P’s which are associated into the marketing.

Ø  Product

Ø  Price

Ø  Place

Ø  Promotion

The product Thums up drink in which it is a strong feel for the person who drinks it. It is a carbonated soft drink category and it is only one kind. There is no other drink with the same taste. So it is a positive approach for the drink and hence it is mainly done in various numbers of age group. It is the only Indian product in carbonated soft drink which gives equal competition to the others in carbonated category.

The price is one of the most important reasons for a person to buy the drink he needs. If the price is high the consumer won’t prefer it. He will go for the other low price brand. The drink may die off. So it is equally priced as the other soft drink as such they can give an equal importance for the brands.

The place is also one of the main reasons of success for the brand. They mainly target the Indian markets as such it is one of its own brand and hence it has a high privilege for the brand. Many people go for an Indian taste drink and hence it can have a good progress. In normal area they targeted with a tagline “Taste the Thunder” and in rural area they did a tagline Thoofany Thanda” which means cool drink in Hindi.

The promotion strategy is done effectively for this brand so that they want a particular image for the drink. They should know Thums up means for the thunder style and dare to do things. The Thunder Wheels campaign was promoted through Television, Radio, and Outdoor. A TV & Radio commercial was created to promote the campaign and was aired on all major channels. Banners, advertisements and links were posted on websites. “

The strength is the price and the places they target for the drink, they also can influence the users.

                                               

The weakness is the promotion of the drink. Their advertising is very poor and it needed to have a change in it.

The brand has separated the loyal customers for it and they often search for the drink and use it. One feels the other as their community because of using the same drink. They can give more advertising and awareness. Can increase the product distribution too.

 They are integrated with the brand image, ad, and taste.

Communication strategy:

Thums Up concentrates on media advertising. 90% of brand promotion is done in TV; Remaining 10% is done through Magazines. Thums Up allows it’s consumers to access its website (www.coca-colaindia.com/brands/brands_thumsup.aspx)  to create knowledge about the brand and its uniqueness. Consumers can send feedback and share their views in the website.  By interactive facility Thums Up can listen to likes and dislikes about among consumers. By this a chance is created to make a necessary change in the product and positioning strategy.

The success of Thums Up is, It can transfer it’s elements to the changing environment of the market. Thums Up hand symbol and the name is catchy, so the market can easily remember the name and could able to identify the product.

Advertisement through billboards and posters is very less when compared to its competitors. Since Akshay Kumar (Movie Star) is used as brand ambassador, where the company uses him to position the product as funky, energetic, action drink in the market, the company can use his billboards and posters to reach the eyes of consumers.

Akshay Kumar, An action movie star is the brand ambassador for Thums Up, since the company wants Thums Up to be positioned as action, energetic drink; Akshay Kumar is chosen which makes sense among consumers. Akshay Kumar fans who wants to be”Action Performers” in their attitude go for Thums Up. Occasionally Thums Up sponsor for street action performers and sports.

They also prize for action performers winner. The company sponsor with bikes and tool kits for their brave skill. Since there is not much action programs conducted in India like mountain climbing, Street racing, Nascar, bike racing, Opportunity for Thums up is less when compared to Europe.

Thums Up can sponsor for cricket, hockey and football where Indians show much interest. Thums Up can also organize games and events like mountain climbing, relays and some national bike and car rallies   which create awareness about the product and leverage in market share.

With the objective to increase the brand image and awareness in rural areas recently Thums Up organized events in 10 towns in Madhya Pradesh state.  The event attracted around 5000 members in each town. By the campaign the product is delivered to all segment of people and create knowledge that Thums up is available through the market including rural areas.

BRANDING STRATEGY:

Coca Cola was the leading national soft drink before leaving in 1977, and Thums Up was launched which became a major hit in the Indian market. When Coca- cola re-entered the market in 1993 bought Thums Up from parle. Since Thums Up had a greater market share and was a major competitor for coke they bought Thums Up brand from Parle. Since coke was competing against Pepsi, they also used Thums up as a major competitor against pepsi.Thums Up enjoyed a market share of around 30% at the time, Coca-Cola focused all its energy on promoting the Coke brand.Whencoca-cola purchased coke initially they tried to kill the brand and promote coke. The brand equity of Thums Up as too huge and the brand refused to die. They tried to divert Thums Up loyalists to Coke in a concerted way. They started positioning the brands differently, where Thums Up was positioned as a more masculine one and coke as a family drink. They did not promote the brand equally to coke since it might reduce the sales of its flagship brand.

The Company branding strategy mainly focussed on the various elements to keep up with the changing mindset of their consumers, Initially they believed in the following,

·         Affordability

·         Availability

·         Acceptability

Later they changed their strategy by focussing mainly on these elements,

·         Price value

·         Preference

·         “Pervasive penetration”

The brand developmentstrategy of Coca Cola is effective as it has been able to construct, manage and maintain its brand image.

They use the “house of brands” strategy where every product has their own promotions which comes under the brand name coke. Every brand has their own brand elements, they may be the brand logo, their tag line or their jingle. Thums Up brand has its own brand elements, its logo which has a thumsUp symbol, its tag line “Taste The Thunder”, and its famous jingle. The other unique elements of Thums Up are its taste and its positioning of its drink as a more masculine one. Its more carbonated ad has a strong flavour and mostly associated with action and adventure. If Coca-Cola decides to mix and match its brand elements it may not work since the company’s flagship brand coke is positioned as a drink for all occasions and family drink and Thums Up as more masculine one. New brand elements can be used to position the drink in as a new flavour for a new target audience.

Brand Portfolio:

The brand portfolio of the company has various products under its name. It has various brands targeting different segments where Coke and Thums Up comes targets the cola segment. While Sprite, Fanta,  Limca are categorized under the flavoured carbonated drinks segment and Maaza, Minute Maid Pulpy Orange targets Natural juice segment. The other two brands under its portfolio are the kinley which comes under the carbonated water segment and Georgia which comes under the coffee segment. 

Every product line has a diverse product list with different flavours and positioned differently for their target audience. Coke has an extended line with various products like Diet coke, Zero Coke, Vanilla coke etc. In the same segment Thums Up brand has not been extended and can be extended with different flavours like coke. This can be done with a stronger flavour which goes with the masculine image of the Thums Up brand.

Extension Strategy:

The company had extended its brand initially by acquiring Thums Up from Parle which had a huge market presence and had a very good brand equity. They extended their portfolio but failed to capitalize on it. They tried competing with Pepsi using coke as well as Thums Up but used less promotions for Thums Up compared to Coke.

Since the Brand Thums Up has a very good brand equity, they can extend the product line of this brand with new flavours and focus on a new target segment by positioning it differently from others. The brand mainly targets more mature audience who go for a stronger drink when compared to coke. By launching variants under it can capture that particular segment.

Thums Up doesn’t have line or CATEGORY EXTENSION The company diversified the flavors as new brand rather extending the existing brand. Eg: As an extension of ThumsUp Fanta can be positioned in the market which attracts Thums Up consumers to go for the product. From the history of Coco Cola Company we could analyze that company believes and follow “House of Brand” method.

The company launched “DIET COKE” as line extension of “COKE”. This move made very good sense in the market. When people became more diet and health conscience, they took professionals advice to reduce in consumption of cola’s. This declined in sales of cola market. The company understood people’s attitude and introduced Diet Coke which is positioned as less fat, less calories and harmless drink. This move increased the sales and positioned the company in the market as a leader.

The company has made lot of effort to manage the brand equity as such it has a given a various number of different ad’s to the consumer to make them remember the awareness of the product. The ad was done by a famous Bollywood actor Akshay Kumar who is a manly guy which suits for the drink image. In the year of 2008 they came up with an ad called as Yamakasi. The theme of the ad was anextreme sport wherein one is expected to cross dangerous hurdles and run at top speed to catch up with a bottle of Thums Up in a truck that is racing away. This is more of a stunt image and racing. But in the year 2008 they came up with an ad sequence of portraying the ‘anything for my thunder’ attitude of the Indian male. Nothing can come between him and his Thums Up.” This is more effective and has a change of their image. The picturisation is very much resembling to the concept. Year by year the stunt is more attractive and skillful so that brand equity is built highly in order they can remember the drink.

To reinforce its brand equity the image of highly masculine must be set to the consumers. They must be well managed with the image of the drink as such they have a good impression. Or it must very basically satisfy the thirst for the drink. They have made it to promote through the advertising campaigns through visuals and the brand ambassador for it. The company mainly invests a lot of money to the ad campaign and has given a lot of changes in meaning of the ad year by year. The meaning is relevantly same but slight changes.

The revitalization is as such done by the effort of mentioning the taste deeply and also the requirement of the drink and in what company it is promoted. They are trying to take of the negative things of the drink and concentrating mostly on the sides of usage. They are catching upon new customers by conducting stage shows and also stunt shows. Its growth strategy is judged by the response for the advertising campaigns and demand in the market for the drink.

The brand Thums up Is India’s own brand and only available in India. It has a very good progress in certain category of people and it has a good progress in the image of the brand. Everyone can easily identify the brand. It has a high market share in the market.

 The company doesn’t have a global expansion and henceforth it can be expanded overseas under the same distributer the coke. As the coca cola brand has a very good image and awareness all around the world and the product will be a success when it is introduced under the home company as a new brand. Hence the drink may be popular around the globe. It can target the countries according to the nature of the people.

Like European and Asian markets for example which has a good meaning for the name Thums up. Thums up is the drink which is available only in India, Which is the own brand.

Once it is done globally it will have a good process in order to reduce the also there are lot of profit opportunities. It will have a global recognition.

The company should highly focus on the Indian markets first because there is high market share but low awareness. It must be increased. They should also reach the global market so that a new drink and lot of revenue will be produced.

From the articles that published and analysation we could infer that Thums Up brand got established brand awareness and leads the market with 80% of market share in early 90’s and even in current market consumers of Thums Up is relatively high compared to other cola drinks.

We analyzed that Thums Up need more distribution in the market. Though the brand got recognition, Availability of brand is not as reachable to consumer’s hand as Coka or Pepsi does. From this we recommend the distribution channel must be strengthened and the company should make sure the product must be available in all store, Within reach of consumers hand.

The present positioning strategy adopted by company is much related for adult consumers. We recommend to introduce “Thums Up Light” to reach women and kids market. Since present Thums Up represents masculine drink it need a line extension to capture women and kids market share. This couldn’t be a big challenge for the company to face the market, As Thums Up considered as Heritage Indian drink, the extension adds as value to elements of Thums up. This also speaks much about parent drink Thums Up and adds value to its consumer knowledge.

The image of one and only Indian drink which compete global market add value to the product which is highly recognized in other countries.  In the history of Coke and Pepsi there is certain pros from consumer and government point of view, in depth it’s one of flavored drink which is out of all controversy. We recommend Thums Up can be introduced in other countries where Coke is being sold.