LMN: Desperate methods

There are just too many soft drink brands in the market and the window to build the brand AND rake in returns is quite short. While viewers may recall the ad, they could connect it with another brand

Don’t be surprised if you find too many cold drink ads being reviewed of late on this site. It’s that scalding time of the year when makers of chillers make serious hay while the sun shines. There’s near domination of the TV channels by cold drink ads this summer.
The latest to jump into the heated fray is a lemon drink called LMN (guess they are hoping consumers will connect that abbreviation with ‘lemon’). And they have flown as far away as the Kalahari Desert to make the point of acute dehydration and the torture thereof. Currently there are as many as five commercials on air featuring a couple of African lads (Bushmen). The idea is this: The commercials revolve around the trials and tribulations the boys go through in the hot, hot desert land to be able to get their hands on one drop of water. Of course, they’ve tried to be funny in the execution… they had to… acute water shortage and malnutrition in that part of the world is no laughing matter, so the creative had to be ‘cooled down’.
And so the dudes chase un-ending water hoses, mistake taps for digging tools in their desperation, try to kill each other for water. They even attempt to suckle a she-cheetah to quench their thirst! Yup, totally whacko stuff, but works on the principle that raising the temperature bar on thirst to phenomenal levels can help position LMN as the ultimate liquidifier. Also, using African kids helps them differentiate the brand from other Indian rivals, which is a sound idea. Of course, they run the risk of upsetting some sensitive folks for parasiting on the miseries of impoverished nations, but when you do mad things, you don’t ponder over such minor details.
And madness is the order of the day. The LMN ads must have cost them a bomb, but these are desperate times for soft drink makers. There are just too many brands in the market and the window to build the brand AND rake in returns is quite short. Come June, the monsoons will arrive in many parts of India and then consumer interest will begin to taper off. However, if there’s one issue I have with the campaign, it’s this—the branding is very poor. Somewhere along the way, the team went overboard trying to be whacky and lost sight of the fact that while viewers may recall the ad, they could connect it with another soft drink brand. They forgot the most important piece of advertising gyaan: The seed of the idea must always emanate from within the brand’s genetics, not out of it.




7 years ago

Dear Sir,
Though the comments about LMN marketing strategies has been described in detail by this piece but i think it lack in-depth knowledge as there was not a single time use of neither Parle Agro (the manufacturer) nor the marketing strategy being followed by Parle for branding of Hippo or as a matter of fact about Appy Fizz.
I think you would appreciate if this piece would have been a comparison of Appy Fizz and effort of Parle to establish LMN.


3% market jump: What follows?

The major market indices today have jumped by more than 3%. What happened in previous instances when the indices made such a giant leap?

It is not often that the stock index manages to vault over 3% in a single day. It did so today. The Sensex jumped 3.35% from 16,769 to close at 17,330 at the end of the day. When such a move occurs, one is bound to take notice.

Moneylife decided to take a look back to figure out how many times this has happened previously and, more importantly, what has been the reaction the very next day. Did the index put on more gains or did it slide? What we found was very interesting.

Our study covers the period 2001-2010. In this period of 10 years, there have been 83 instances (excluding today) of the markets crossing the 3% threshold in one trading day. Out of these, there have been 47 instances when the markets have remained positive for the next successive trading day. This translates into a 57% chance that the market will witness a spike in tomorrow’s trading. Not much of a heartening statistic, but an indicator nonetheless that is mildly encouraging for the bulls. On these occasions, markets have gained up an average 1.63% on the following day, with a maximum gain of 6.41% and a minimum gain of 0.06%.

On the 36 occasions that the markets have turned negative on the following trading day after a 3% gain, the index has shed 1.52% on an average. The maximum fall on such occasions has been 6.61% while the minimum fall was 0.03%.

Today’s surge was driven solely by the supposed happy end to the financial woes of several European countries, specifically Greece. The unprecedented $900-billion bailout organised by the European Central Bank (ECB) and the International Monetary Fund (IMF) to rid the
eurozone of its debt plague have brought joy on the faces of investors worldwide.

One single day of rally has wiped out almost the entire 4% decline that markets witnessed last week. There is every chance that today’s feel-good factor will roll on to the next trading session. Don’t expect the markets to do a high-jump again, but at the time of writing this piece, the European markets were up a huge 5%-9% while S&P500 futures were up a massive 4.7% in premarket trading.


More gains in store?

We have been predicting a rally since the past few days, and bourses rallied smartly on Monday

The market was up on the concerted effort of the eurozone nations to help the weak nations in the region come out of the debt crisis. The BSE Sensex ended at 17,330, up 561 points (3.3%) and the Nifty ended at 5,193, up 175 points (3.5%). Bullish sentiment was the dominant force in propping up the indices, supported by a rally in metal, auto, and realty stocks. The Sensex regained the psychological 17,000 mark.

Asian stocks rose on Monday, as European leaders agreed to a rescue package to relieve the concerns over debt levels of Greece and other European nations.

Key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Singapore and Taiwan rose by 0.39% to 4.08%. US stocks fell on Friday on fears of another credit crisis stemming from Greece’s souring finances and lingering questions about what triggered the previous session’s dramatic plunge.

The Dow fell 140 points (1.3%), to end at 10,380. The S&P 500 was down 17 points (1.5%), to end at 1,110. The Nasdaq ended 54 points (2.3%) lower, at 2,265.6. 

The European Union (EU) agreed to a loan package with International Monetary Fund (IMF) support to stop a credit crisis in Europe. The European rescue plan, valued at more than $900 billion (€720 billion), has three main components. The biggest provision at nearly $570 billion (€440 billion) takes the form of government-backed loans to regain confidence in weak credit markets. A second measure is the expansion of a $77 billion (€60 billion) stabilisation fund, which will be available to eurozone states facing exceptional circumstances. Finally, the IMF said that it would contribute $284 billion (€220 billion). The European Central Bank (ECB) will buy eurozone government bonds and private debt.

Closer home, the government will announce the industrial output data for the month of March on 12th May. Industrial output grew by a lower-than-expected 15.1% in February, also lower than the 16.7% rise in January.

Foreign Institutional Investors (FIIs) were net sellers on Friday, offloading stocks worth Rs1,308 crore and Domestic Institutional Investors (DIIs) were net buyers purchasing stocks worth Rs654 crore. The rupee gained on the dollar weakening against some major currencies.

Metal stocks recovered on the aid plan by euro nations for helping Greece to come out of the debt crisis. Kale Consultants (up 2.1%) has received an order from Vietnam Airlines for its cargo and passenger revenue accounting requirements. The airline will deploy these solutions on a license basis.

Pratibha Industries (up 4.7%) has received an order from the Maharashtra State Road Development Corporation (MSRDC), which involves construction of two bridges, maintenance of the bridges and road and commercial development of 8.4 hectares of land. The total capital investment in the project is estimated to be about Rs100 crore that will be recovered through toll collection and land development. The toll collection will be for a period of 19 years and four months.

Dalmia Cement (Bharat) (down 6.9%) and Kohlberg Kravis Roberts (KKR) have signed an agreement that provides for the latter to invest up to Rs750 crore into DCBL’s wholly-owned unlisted subsidiary—Avnija Properties.  Dalmia, which has sugar and cement businesses, had said in March that it would spin off the cement, power and refractory businesses into its unit, Dalmia Bharat Enterprises (DBEL), and list it on the stock exchanges by the end of the year. 

Oil-exploration stocks were up as crude oil prices rebounded to $77 a barrel on Monday from their lowest level in almost three months on expectations of global demand recovery.


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