Page 160 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

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"If you are premium priced in the consumer's mind, your extensions are automatically
perceived as premium. So, if you don't present the other products as premium, the consumer
will not see them as extensions of the brand," he said. "For example, if you are to launch a
shampoo which is priced lower than Sunsilk, but higher than Nyle and Ayur, then whatever
the rationale, the consumer will not accept your product. "It is not the Sofio I know," will
be the feeling," he said.
Mahajan felt that since premium positioning was one of Sofio's equity values, it would be
very difficult to convince consumers that the brand was being extended without hanging
on to this particular value. "Will they buy your rationale that the very same values and
equity would now be available at a low price? To be in the premium segment now, you
have to price it at 35 or 40, almost on a par with Dove," he said. "With Dove retailing at
45, Sofio will be perceived as a cheaper option."
"We can't simply raise the price," said Rajan. "What are we offering for that increase? You
can't add value because you don't want to tamper with the brand. The consumers will then
ask, "Sofio used to be so cheap, what has happened now? The user will forget that 15 years
ago, 10 was expensive, because all her comparisons would be in today's context," said
Rajan.
"So what's the option?" asked Mahajan. "You don't have to be expensive to be premium,"
said Rajan. Sofio already has the image of a premium brand, thanks to its time-tested core
values of purity, credibility and reliability. What we can do is reinforce the premium
through communication and positioning. In fact, we should have tinkered with Sofio long
ago. That is what HLL did with Lux. It also launched a bridge brand, Lux International, in
the premium category," said Rajan.
"How could we have done anything to the brand?" asked Mahajan. "The product had such
a strong following. It stood for gold, for sesame oil, for its subtle earthy perfume. We
changed the packaging periodically, but that's all we could do. Remember the time we
brought out a transparent green Sofio with the fragrance of lime? It bombed in the market."

Rajan was not in favour of the premium positioning. It appeared very short-sighted to
him, given the bigger plan to extend the brand. "Where are the volumes in the premium
segment? He asked. "For some reason, every manufacturer feels that skincare can be an
indulgence of only the moneyed class. As a result, there is a crowd in the premium end of
the market. Do we want to be yet another player in the segment?"
Fifteen years ago, Sofio was perceived as a premium product. But today, global brands
like Revlon, Coty and Oriflame were delivering specific premium platforms. Sofio did
not have a global equity. "Let us revisit the brand and examine what it stood for 15 years
ago and examine the relevance of those attributes in today's context," suggested Rajan.
"Sofio stood for care, consciousness, love, quality and all that. But today, are these enough
to justify a premium position?" he asked Mahajan. "These attributes are viable in the mid-
priced segment." He said.
"The mid-priced brand is the proverbial washerman's dog," said Mahajan. "You don't
know whether you are at the bottom end of the premium range or at the top-end of the
low-priced range. You end up creating an image of being on the opportunity fence. It is a
mere pricing ploy, with no strategic value."

Rajan could understand Mahajan's fears. Some brands in a similar dilemma had managed
to redefine their equity. For instance, HLL created a low-priced variant of Rin without
incurring much dilution to the washing bar's equity. Rin was always perceived as a
premium, high quality product that gave superior washing results. It was always several
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