Havells, Ultratech, Saint Gobain, Greenply, Gyproc, Kajaria, Astral and Asian Paints are just some of the brands that have been built in the Building & Construction industry (henceforth BCI). So this is not an industry that has shied away from investing funds for bigger fortunes for their company or brand. Result is that many categories have brands now; Wires, Tiles, Glass, Plywood, False Ceilings, Pipes, Paints and others.
Before the first step was taken to build brands in these categories, these were highly commoditized categories. Low involvement. Conversations were not happening about wires till Havells entered. False Ceilings were forgotten till Gyproc entered. Plywood quality was not being questioned till Greenply entered. The collective spend of all these allied categories have resulted in making the Indian home owner house-proud. This is now a high involvement industry.
But there are still plenty of categories or sub-categories left in the BCI, where branding can still happen. Enough categories that are still commoditized. And those that are branded, still have the potential to be sliced into sub-categories.
But before we look at unexplored categories, let’s quickly understand what I mean by ‘commoditized category’. And then look at some case studies to see what we can learn from them that we can apply to future branding efforts.
What is a Commoditized Category?
It is one where no one player can command a price premium in every sale they make. It often has multiple players, all of whom are fighting for each sale based on discounting and not the strength of the brand.
Be the first mover
Many of the now branded categories mentioned above were once highly commoditized. A first entrant, if it does a good job at marketing and branding, will have a higher chance of remaining a market leader. So there are tremendous advantages in being first in a category to build your brand in a ‘significant manner’.
But what about the Strong Influencer?
Contractor, Carpenter, Electrician, Project Manager are all strong Influencers in the BCI. Earlier, products relied solely on them to be the ‘recommended’ solution. But that has since changed. Don’t get me wrong. Engaging with the Influencer is still important. You don’t want their veto. Their influence is extremely strong and if they were to prefer other brands, you will struggle in the market. But by building a brand you can take the power out of their hands; partially. By building a brand and talking to the End-user directly, you take some power into your hands, or in other words, put some power into the End-user’s hands. You end up creating ‘PULL’ for your brand. Now, let’s look at some brands who have done that successfully.
Havells Cables
As recently as 2010, the wires category was ‘invisible’. The End-user was not having a conversation with the electrician or the contractor about what wire to use for their home. The electrician was not even the influencer, he was the decision-maker – the reason – the product does not create any envy, unlike paint or floor tiles. Add to that, the product goes behind a wall or behind piping.
The End-user did not know the importance of the product, the criticality of it. So a category such as this was not a likely category for branding. But if you dig a bit deeper, you can discover the use and importance of having a quality wire. Safety. Cities and homes in India are fire prone and a quality wire that is fire-retardant would appeal to a consumer, if reminded of the benefits of using a quality wire like Havells.
Thank God that Havells had tasted some branding success with their ‘Shock Laga’ campaign for the Switches category. Otherwise the ‘Wires that don’t catch fire’ campaign may not have happened. And the success of Havells in the wires category has allowed it to venture into Fans and Small Appliances as well.
Astral Pipes
Astral Pipes has been a leader in the category. It was the first to introduce CPVC pipes in India way back in 1999. It also introduced lead free PVC pressure pipes in 2004. By the time they decided to build their brand in 2013, the category had moved from metal pipes to PVC & CPVC. It was already a market leader in a Rs. 25,000 crore category. But the category was fragmented with many local players. So it was up to the market leader to take that first step and build their brand. To grow their brand and the category.
This category was also invisible, just like wires. It was inside the wall. No End-user was having a conversation about which CPVC pipe to buy. But it was up to Astral to change that. Pipes can cause leaks, a key issue people face and it is a big hassle to get fixed. CPVC pipes are designed to handle hot and cold water, so chances of leakages are less. Astral chose to bring in Salman Khan as a brand ambassador, due to his mass appeal. It would create the needed cut through.
A few campaigns later, Astral’s growth can be seen consistently from 2014 till date. Their bold move to build a brand has changed the trajectory of the brand. A brand worth watching in the future.
Saint Gobain
When a global player enters a new market it makes a big entry. And in the year 2000, Saint Gobain did just that when it entered India. But this entry was unusual for Saint Gobain. Saint Gobain had never done a big communication campaign anywhere in the world. It was a well-known brand in those markets and perhaps never felt the need to. But some bold thinking from the company and management in India and the rest is as they say history.
The glass market was a highly fragmented commoditized category in which no player had created a brand. So the opportunity was ripe for Saint Gobain. They chose to go with the key benefit of ‘clarity’ and the result was an iconic campaign. (I recommend you see this ad if you have not. Go to the Youtube Saint GobainIndia channel.) The results were impressive, they cornered 20% of the market in a matter of months.
Untapped Categories in the BCI
As initially mentioned, the BCI is one industry that has spent on marketing and branding. But there are still many untapped categories and sub-categories. By untapped I mean, where significant efforts have not been made to build a brand. Bricks are one of the most commoditized categories in India. Each area has its own manufacturer that caters to that local market. Difficult to judge the quality of bricks. Not too many consumers are asking which brand of bricks are being used to build their home. It is awaiting someone to make that first move.
While some branding efforts have been made for Windows. Some players have taken some steps, I would still classify this category as untapped because brand building has not been done in a significant manner. With all the leakage problems we face through windows and the kind of monsoon we have in India, this category has tremendous potential.
There are many more such categories. Also if your category has brands, there is always a way to slice the market in such a way that you can be a leader in that segment. You will need to discover the End-user’s need that you can credibly deliver and take that big bold step.
All you need to do is talk to the End-user, while still engaging with your Influencer.
Take that step. Build your brand. Make History.
by Abhimanyu Mathur, Executive Vice President, Lowe Lintas
