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August, 2001

Marketing

Lux with Nepali Karishma

Within barely two years of turning a schoolgirl into a glamorous model for its fairness cream, Nepal Lever Ltd. (NLL) has now scored another marketing point against its global competitors in the Nepali market. The company’s recently relaunched Lux will now be recognised as a beauty soap of Nepali film stars.

While all the other foreign brands of beauty soap available here are still using foreign language ads dubbed in Nepali but featuring foreign models, a new ad for Lux has Karishma Manandhar, a heart-throb of Nepali film industry, endorsing the product, thus helping to localize the brand.

But the development also has one more aspect to it. Endorsing Lux in a 30 second TV ad filmed in Bombay by Shamin Desai of "Shot in Dark", as the shooting company is called, Karishma joins the league of foreign film stars including Ginger Rogers (in late 1920’s), Meena Kumari, Madhubala and Aishwarya Rai, who have endorsed Lux. As all of them were regarded the number one in their respective fields in one year or the other, Karishma too can claim to be recognised as the prima donna of Nepali film industry. As of today, the industry does not have a generally acceptable system of recognizing anyone as the number 1 star. But Karishma’s association with Lux is believed to have made her one.

It is not a normal relaunching of Lux, however, say sources at Thompson Nepal (P) Ltd, the Nepali subsidiary of Lever’s ad agency worldwide. The product, positioned as the beauty soap of film stars worldwide is now improved further with 72% TFM (Total Fatty matter), they point out. Priced at Rs. 15 for a bar, improved Lux is now presented in three varieties - milk cream, honey and almonds.

Choosing Karishma (the word means miracle) for the ad and signing one year contract with her for Rs. 200,000, NLL has made another tactical move as well. As was reported in the Asian Wall Street Journal recently, the producers of foreign brands in Nepal have been facing a dilemma to find a high degree of bias among the Nepali consumers against made-in-Nepal labels, causing difficulty in selling the local products in the local market. Making Nepali celebrities endorse the local products is expected to change that.

NLL has been trying in this direction for the last couple of years with its Fair & Lovely fairness cream and the campaign to promote the locally produced cream as of international standard is believed to be a success. May be, that experience will be repeated in Lux as well. If that happens, Nepali film stars may find one more avenue for making good money. Though they were used occasionally for product ads in the past, the success has not been so encouraging. For example, Karishma herself had modeled for a local brand of toothpaste when she was over a decade younger than she is today. But the brand was not successful. However, times keep on changing.

Now It’s Colour World

Asian Paints (Nepal) (Pvt.) Ltd. is to open 10 Colour World outlets in Kathmandu valley and one each in Pokhara, Biratnagar and Butwal making it easier for the customers to choose and select a paint colour of their preference.

To be available in the shops of Asian Paint dealers, the computerised facility allows the customers to select any blend of over 6,000 shades which will be delivered within minutes, say reports quoting the Nepali subsidiary of India’s Asian Paints.

Almost similar facility has been available in Nepal from another paint company, Jenson & Nicholson (Nepal) Pvt. Ltd., which introduced it early 1999 under the brand Instacolour.

Admission Season

Search of Professional Private Sector in Education

With the culmination of new admission season in higher secondary schools, interesting ads are available to savour not only by the parents and fresh school graduates but also by marketing freaks. By the time this report is printed, the admission season will be over. Still the samples make interesting readings, and reveal a trend that is fast growing in the country’s education sector.

The season this year follows a gap of about two months during which the new practice of provisional admission flared some controversy this year. Yet nobody, including the authorities of both in the Education Ministry and the higher secondary board, have come out as yet for or against this. Same is the case regarding the ads announcing "admission opened".

Some of those ads were printed on the daily newspapers and some others inserted as separate sheets. One such interesting ad was from a school that claimed to be a specialist in management. It addressed the students thus: "Attention: SLC graduates". But below that was a question: "Why should you entrust your child to us?" An example of confusion about who the real prospect is.

Equally interesting is another English medium 10+2 school’s ad for its language as well as what it has to offer (see the clip). It also reminds of an ad early this year from a high school which resembled that of resort hotel. That is enough to give sufficient material for those who criticize private sector’s involvement in education. Perhaps it is already late for the authorities to redefine privatization of education so as to streamline it with the real objectives of education through private sector.

As for other trends, few schools used the photo of their buildings while many others highlighted physical facilities including the brand of the school bus. Only a few focused on the teaching aids and extracurricular and co-circular activities such as seminars and field observation. Some printed even the photos of their students who scored good marks in previous board exams, including the claim that its student topped the merit list in this year’s class XII exams. Such attempt last year was quickly snubbed by the Board.

As an indication of the growing awareness among education providers about the career needs of the students, some schools also promised job placements and opportunity to study overseas.

In some cases, the ads featured the name of the Principal and Vice-Principal as well as that of the chairperson of the school’s board of management. Again interestingly, some names were of those who are full-time teachers in Tribhuban University which had last year brought out a strict rule to stop the teachers under its payroll from taking any teaching job in the private schools.

Regarding the majority of ads, the content was almost invariably the same - that the admission in them was open and they offered courses of the Higher Secondary Education Board in Science, Commerce and Humanities. But very few were able to highlight the distinguishing features justifying why parents or students should opt for one particular school.

Copying of advertising innovations made by other institutions was among the noticeable trend. One school did it quite visibly by stretching its banners or hanging the danglers in the same black colour and writing on its with the same golden ink that another school has been using since its establishment some six years ago. So much so that the text on the banner read the same: "Calling batch 2001". The only difference was the year - 2001 instead of 2000.

But the six-year old institution was quick to come up with its another innovative banner. Its new banner, again in black colour with golden writing, advised the prospects to call its telephone number for FAQs (frequently asked questions) regarding studies after SLC. Apart from using a catchy and trendy management jargon it scores on another ground as well. It does not solicit applications, but offers advice. Understandably, once the advice-seekers come to you, it is up to you and your institution’s classroom layout, assortment of reference material in the library, the personality, academic credentials and etiquette of the staff and teachers and factor of similar nature that can convert the contact into an admission.

Equally innovative was a print ad by a school established only last year. It said "admission" was "open" in it, and gave a photo of an open gate with the school’s name and address below. Among all the other ads from schools with information clattered all over the space, the new institution’s was really unique. Similarly creative was another piece by a new school that used a chair in its ad and used some attractive words. That the ad was in colour, made it more attractive. No parent or student could have missed it.

Career and academic counseling is a tool to improve student’s academic performance and to help them plan their career. Started by some pioneering schools a few years ago in Nepal, this is now fast becoming a marketing tool in the hands of some schools. One such other school held a seminar of parents on "Counseling" and tried to make much out of it by publicizing about the event through newspaper reports.

Compiling a chart of admission details for the schools would be interesting against all these exercises by them. But with the number of such schools being in hundreds within the valley itself (one newspaper report puts the number at 763 exactly) there is no denying that "commercialization" is here to stay in this business, though that may not necessarily mean "professionalization".

Still a question remains unanswered: What really does sell an education institution? The teachers? The free internet surfing facility offered? The basketball court/swimming pool? The existence of a Counselor in the pay roll? Or the brand of school bus?

By New Business Age Reporter

New Launches

Wall TV

Syakar Company Ltd. has introduced in Nepal 42" wide screen Plasma TV from Philips, the state-of-the-art technology product that is only 11cm thick and so can be hung on the wall just like a painting.

However, the product is priced at an astronomical amount, over Rs. one million rupees, thus limiting its target market to a very small group of buyers. But the company sources refuse to disclose the exact price.

The product also boasts of such features as 160° wide viewing angle, high resolution picture and split screen.

"Plasma technology enables uniform, distortion-free picture and bright, accurate colours. Plasma display is also protected from the effects of magnetic fields. So nothing, from loudspeakers to industrial equipment, can interfere with your perfect picture", says the company’s leaflet.

Moreover, the product can also be made to monitor with full multimedia for the PC with the help of VGA in/out port, it is said.

This is the first time that such a TV is commercially introduced in Nepal, claims Syakar company, a Jyoti Group unit which has long been the authorised distributor of Philips in Nepal and started a specially renewed effort for the marketing of Philips brand of electronic goods since the first quarter of 2000 by setting up exclusive Philips showrooms.

Euro I Bajaj Tempo

Hansaraj Hulaschand and Company (P) Ltd., has introduced four-stroke Bajaj tempo to replace its two-stroke version plying presently in Kathmandu streets.

The move comes at about four months before the date the government plans to send two-stroke engine vehicles out of Kathmandu valley and almost together with a report which claimed that the plan was at present suspended following government’s decision about two months back to review the decision.

According to the company, the new three-wheelers meet Euro I emission standards and have received approval under Nepal Vehicle Mass Emission Standard, 2056 from the concerned Nepali authorities.

Compared to gas tempos, battery tempos and micro-buses, the new tempos from Bajaj Auto are going to be substantially cheaper, claims the company. Thus it will be a good alternative for the existing tempo owners and drivers to replace the vehicles that they have to remove by November 15, 2001. The company estimates that a gas tempo costs between Rs. 450,000 and Rs. 600,000, while a battery tempo needs between Rs. 500,000 and Rs. 650,000. The cost is still higher - between Rs. 700,000 and Rs. 1,300,000 - for a micro-bus. But Bajaj costs Rs. 225,000 inclusive of VAT, customs and other taxes. If it receives similar concessions on VAT and customs as in the other vehicles (gas tempo, battery tempo and micro-bus), the cost will come down to Rs. 160,000, says the Nepali distributor of Bajaj Auto Ltd.

Therefore, the new Bajajs are going to be a cheaper alternate to provide employment to the tempo drivers who may otherwise be rendered jobless when the existing two-stroke tempos will be removed, it is argued.

To emphasize its concern for the environment, the company has printed the press release on a Nepali handmade paper and inserted a card with an appeal to save Rhododendrons Arboreum, the national flower of Nepal. Nepali handmade paper can be 100% recycled.

Meanwhile, HH & Co. has also launched Bajaj’s new model motorcycle, Kawasaki Croma.

Priced at Rs. 94,900 as the introductory offer, the 111.6CC bike manufactured in India by Bajaj Auto Ltd. under technical collaboration with Japan’s Kawasaki Heavy Industries, has wide zapper tyres, stylish trapezoidal headlight of 45 watts and 240 mm ventilated disc brakes.

The company has also upgraded its Teku workshop to enhance its after-sales services so as to "befit the high-tech" used in the bikes.

Emami’s Full Range Entry

India’s Emami Group has formally launched the entire range of its beautycare products into Nepali market - after about two years of the products being made available through local distributor.

With 20 diverse brands in its store, the company claims to have every product in the herbal/Ayurveda FMCG segments including creams, talcum powders, massage oil, soap varieties, Chyawanprash, toothpowder, balms, honey etc.

The company is however using Emami Naturally Fair Pearls as its main plank for entry into Nepal. And that places Emami face to face in competition with Nepal Lever Ltd. which has invested heavily here to promote its own fairness cream - Fair & Lovely.

Called by the company as "a unique fairness system", the Pearl based fairness cream of Emami is claimed to incorporate the most recent findings of its R&D wing to use Pearls to enhance the glow of the skin. Hence Emami’s claim of fairness in four weeks, against Lever’s six weeks.

Being marketed in Nepal since 1999 by Pashupati Pen Marketing, the Emami range is receiving an "overwhelming" appreciation from consumers, according to the company officials present in the formal launching ceremony. Navaratna oil, Boro Plus and Sona-Chandi Chyawanprash are said to be the other most popular brands of the company in Nepal so far.

On the occasion, Prashant Goenka, Director of Emami Group of Companies, also hinted that his company is contemplating to start contract manufacturing in Nepal next year. Emami has 21 manufacturing units across India and a joint-venture in Bangladesh.

Kodak to Start Picture Kiosks

Selected Kodak Express Stores are setting up instant picture kiosks offering digital instant picture printing facilities to the customers with the help of Kodak Picture Marker.

Beginning August 2001, amateur photographers can go to these kiosks, enhance the quality of their pictures as they like, and get digital quality photo prints within minutes, claims the company. The facilities available are for adjusting the brightness, zooming, cropping and adjusting the background, among others.

Kodak’s Picture Maker also allows the customer to get better quality reprints from old positives and negatives and also to store the images in diskettes, thus eliminating the need for storing negatives.

Photo Concern, the Nepali distributor of Kodak products, is also offering the machines to other photo studios and photographers. The machine is priced at Rs. 350,000, it is learnt.


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