Owner: The FMCG & RETAIL Marketing Blog URL:http://fmcg-marketing.blogspot.com/ Join Date: Wed, 24 Oct 2007 04:30:37 -0500 Rating:0 Site Description: Welcome to the FMCG and Retail Marketing Blog. Discussions, Analysis, Insights on various topics and events in Marketing. A Premier Marketing blog to share findings while improving our own knowledge base. Site statistics:Click here
New Product Development 2007-10-30 08:26:00 There are several general categories of new products. Some are new to the market (ex. DVD players into the home movie market), some are new to the company (ex. Game consoles for Sony), some are completely novel and create totally new markets (ex. the airline industry). When viewed against a different criteria, some new product concepts are merely minor modifications of existing products while some are completely innovative to the company. Changes to Augmented ProductCore product revisionLine extensionsNew product linesRepositioningsCompletely newThese different characterizations are displayed in the following diagram.There are several stages in the new product development process...not always followed in order: Idea Generation (The "fuzzy front end" of the NPD process) Ideas for new products can be obtained from customers (employing user innovation), designers, the company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or through Read more:Development
Product lining and Price Lining 2007-10-30 04:41:00 Product lining is the marketing strategy of offering for sale several related products. Unlike product bundling, where several products are combined into one, lining involves offering several related products individually. A line can comprise related products of various sizes, types, colours, qualities, or prices. Line depth refers to the number of product variants in a line. Line consistency refers to how closely related the products that make up the line are. Line vulnerability refers to the percentage of sales or profits that are derived from only a few products in the line. The number of different product lines sold by a company is referred to as width of product mix. The total number of products sold in all lines is referred to as length of product mix. If a line of products is sold with the same brand name, this is referred to as family branding. When you add a new product to a line, it is referred to as a line extension. When you add a line extension that is of better quality th
Brand Identity Prism (Kapferer) 2007-10-29 23:48:00 The conception of brand identity was mentioned for the first time in Europe by Kapferer, 1986. The importance of the conception and its understanding quickly disseminated in the entire world. The literature on brand management, which has been widely examined, uses the terms “equity” (Aaker, 1996).According to J. Kapferer, brand identity could be de-fined by answering the following questions:- What is the aim and individual vision of a brand?- What makes a brand distinguished?- How satisfaction could be achieved?- What is brand‟s equity?- What are brand competence, validity and legitimacy?- What are the features of its recognition?it could be claimed that the conception of brand identity includes the uniqueness, meaning, aim, values, and personality and provides a possibility to position the brand better, and, thus, achieve the competitive advantage.Sources of Brand
Identity:GoodsNamePersonage (emblem)Visual Symbols and LogotypesBrand developerCommunication together with its conte Read more:Prism
Training Manpower: TATA 2007-10-28 23:48:00 Mumbai, Oct. 27The group would soon roll out an in-house recruitment and training set up for its retail business, on the lines of Tata Administrative Services (TAS). Internal cohesion The group would encourage entry level managers working in stores such as Westside or Titan to work their way up to top managerial positions in that set up. There would also be a system of internal cohesion whereby a staff member from any of its retail brands could shift to work in its other customer-facing brands, which could be front desk jobs in Taj hotels too. The Tatas have a presence in the organised retail space through Tanishq, Titan, Croma, Westside, and Star Bazaar selling jewellery, watches, electronics, apparels & accessories, and food & beverages respectively. Tackling attrition Read more:Training
Manpower Hierarchy in Retail: ITC 2007-10-28 13:18:00 We'll first look at an example of the Choupal Saagar retail business of ITC where the different roles are listed below. Store Level: (in Ascending Order)HelperCustomer Service Associate (Cashiers & Category Salespersons)Stock In charge Assistant Store In chargeStore Manager State Level:Retail
Accountant Area Manager (around 3 stores) State Retail Manager (entire state) Headquarters: Buying Assistants Assistant Managers Merchandising Managers (each category) Business Development Manager Retail Head There might be a few other levels in the Headquarters level. Read more:Hierarchy
Co-branding 2007-11-05 11:20:00 Co-branding is a marketing arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer. The typical co-branding agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to combine the strength of two brands.The marketing of Gillette M3 Power shaving equipment with Duracell batteries (both brands owned by Procter & Gamble).Many online companies think they are pursuing co-branding when in fact they are pursuing strategic partnerships. Partnerships, which have different goals than co-brands, are a way of leveraging a corporation's own strengths and softening its weaknesses via a joint effort with another firm.
Umbrella Branding 2007-11-05 11:04:00 As with all effective brand strategy, umbrella brands require a single message, an expression of a commonsense benefit grounded in human emotion that opens the way to own the conversation within a business category. Umbrella brands abound in business; examples include Virgin, Kellogg's, Sony, and location brands such as Japan, Manitoba, and St. Louis. With an umbrella brand, the number of interactions the consumer has with the brand increase significantly, thereby reinforcing the brand values, and it helps transfer the goodwill to new products and categories. But the umbrella brand needs to be focused: It must stand for the same values across the category or range of products, and have the same emotional link. Generally, consumer durables and services brands have used umbrella branding, while FMCGs have not, but even they have resorted to brand extensions rather than new launches.Independent brands only make sense when the product clearly has a different proposition from the compa Read more:Branding
Flanker Brands 2007-11-03 01:22:00 A flanker brand is a Line extension by the company. HUL having different varieties of washing powder detergent, e.g. Surf Excel for the Premium segment, RIN for the middle segment and Wheel for the lower segment.P&G having Ariel for the premium segment and Tide for the middle segment.A flanker brand is a new brand introduced into the market by a company that already has an established brand in the same product category. The new brand is designed to compete in the category without damaging the existing item's market share by targeting a different group of consumers. This strategy, also called fighter branding or multibranding, is used to achieve a larger total market share than one product could garner alone. Companies with multiple brands in a single product category generally have the following types of products in their portfolios: A premium brand that offers high quality at a higher price. One or more "value" brands offering a slightly low Read more:Brands
NIVEA: Brand Study 2007-11-02 09:16:00 "In many countries, consumers are convinced that Nivea is a local brand, a mistake which Beiersdorf, the German makers, take as a compliment." www.wolff-olins.com. "The concept is one that spans a great many categories. Coca-Cola as a brand does not have a lot of extendability. Whereas Coke means Coca-Cola, Nivea is not Beiersdorf." History The legacy skincare brand Nivea can be easily found in 150 countries around the world. Approaching its 100th birthday, "Nivea" derives from the Latin word "nivius," meaning "snow-white." The first brand to bring skincare products from the privileged elite to the mass market, its initial product offering, Nivea Crème, was created by a team of dermatologists in 1911 who claimed it was "the world's first long-lasting skin cream." By 1924, Nivea initiated the use of its blue and white tins, still in use today. A brand born of dermatological expertise, consumers continue to associate Nivea with trust, reliability and accessibility. Owned by Beiers Read more:Brand
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Fiama Di Wills: ITC Shampoos 2007-11-10 21:32:00 Ad-Analysis:ITC has prided itself on breaking the clutter with its different approaches towards advertising in Sunfeast and then Bingo. But it has gone for a safe bet on Fiama Di Wills
.The advertisement looks more like a Pantene TV ad rather than a new entrant.Description:Cigarette and FMCG major, ITC has launched its first mass personal care offering, a high-end shampoo. After a year of speculation, ITC has launched its first mass market personal care product. ITC 's shampoo brand, Fiama di Wills is in the premium segment, that’s growing faster at 44%, compared to 21% for the overall market. Interestingly, ITC didn’t introduce a new brand name for its shampoo. Instead it has opted for a brand extension of its two year old, super premium range of personal care products, Essenza di Wills. But unlike Essenza that was available at ITC hotels and Wills Lifestyle stores, Fiama di Wills shampoos will be stocked at retail stores across India. The product will be available at Rs 99 fo
KB’s Fair Price Shop 2007-11-14 03:50:00 Pantaloon Retail India Ltd is moving into the smaller retail store format through their launch of the KB’s fair price shop. It is going to be a no-frills, fair price shops chain; with a tag line of “Saare Jahan se Sasta” the new retail chain would alter a few rules of the game in India. Subhiksha is "Bachat Mera Adhikar", while KB's (Kharido Becho) fair price shop wants to be "Saare Jahan Se Sasta" retailer in India. KBFP’s target should be to provide essential items cheaper than the market price and to look at a 20% to 30% market share of the neighbourhood retail market. With each shop measuring an average of 2,000 square feet retail space, it will be based on neighbourhood, convenience, stores concept. Stocking only a limited variety of items required to meet daily needs of its customers, the chain proposes to offer merchandise at 10% lower prices than market for national brands and up to 20% lower than market prices for local brands. ¨ KB’s fair price shop needs to
Advocacy Advertising 2007-11-20 22:42:00 • Advertising
used to promote a position on a political, controversial or other social issue. • Expresses a viewpoint on a given issue on behalf an institution. • Is often provided by government agencies and non profit organizations Advocacy advertising almost always is related to a specific public policy or upcoming legislation. The ad will express an opinion on the issue or position the sponsoring industry or company as a leader in its field or area of expertise, such as health care, the environment, or education. •Public Health Promotion: Anti smoking , AIDS prevention •Public Safety Promotion: Seat belt usage and fire prevention •Education-related issues: Literacy programs What Makes an Advocacy Advertisement Effective?A quality advocacy advertisement is well-expressed, phrased in human terms, and articulates the debate on your terms, rather than the opposition’s point of view. Providing research to substantiate your claims make the
Vertical Marketing Systems (VMS) 2007-11-20 03:58:00 A vertical marketing system (VMS) is one in which the main members of a distribution channel--producer, wholesaler, and retailer--work together as a unified group in order to meet consumer needs. In conventional marketing systems, producers, wholesalers, and retailers are separate businesses that are all trying to maximize their profits. When the effort of one channel member to maximize profits comes at the expense of other members, conflicts can arise that reduce profits for the entire channel. To address this problem, more and more companies are forming vertical marketing systems.Vertical
integration is the expansion of a company by moving forward or backward within your vertical market or industry. An example of forward integration might be ITC buying wheat from farmers to produce Aashirwad atta and Sunfeast biscuits recently.Corporate VMS - A group of companies performing different tasks under one ownership. Contractual VMS - Independent compani Read more:Marketing
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SERVQUAL or Gaps Model 2007-11-19 22:31:00 There are seven major gaps in the service quality concept, which are shown in Figure 1. The model is an extention of Parasuraman et al. (1985). According to the following explanation the three important gaps, which are more associated with the external customers are Gap1, Gap5 and Gap6; since they have a direct relationship with customers.· Gap1: Customers’ expectations versus management perceptions: as a result of the lack of a marketing research orientation, inadequate upward communication and too many layers of management.· Gap2: Management perceptions versus service specifications: as a result of inadequate commitment to service quality, a perception of unfeasibility, inadequate task standardisation and an absence of goal setting.· Gap3: Service specifications versus service delivery: as a result of role ambiguity and conflict, poor employee-job fit and poor technology-job fit, inappropriate supervisory control systems, lack of perceived control and lack of teamwork.· Gap4: S
PEST Analysis 2007-11-18 05:21:00 PEST factors play an important role in the value creation opportunities of a strategy. However they are usually beyond the control of the corporation and must normally be considered as either threats or opportunities. Remember macro-economical factors can differ per continent, country or even region, so normally a PEST analysis should be performed per country. In the table below you find examples of each of these factors. Political (incl. Legal) Economic Social Technological Environmental regulations and protection Economic growth Read more:Analysis
Ansoff Matrix 2007-11-18 04:23:00 The product/market grid of Ansoff is a model that has proven to be very useful in business unit strategy processes to determine business growth opportunities. The product/market grid has two dimensions: products and markets. Over these 2 dimensions, four growth strategies can be formed: - market penetration, - market development, - product development, and - diversification. Market Penetration: Company strategies based on market penetration normally focus on changing incidental clients to regular clients, and regular client into heavy clients. Typical systems are volume discounts, bonus cards and customer relationship management. Market Development: Company strategies based on market development often try to lure clients away from competitors or introduce existing products in foreign markets or introduce new brand names in a market. Product Development: Company strategies based on product dev Read more:Matrix
3C's model - Ohmae 2007-11-18 00:58:00 The 3C's Model is a strategical look at the factors needed for success. It was developed by Kenichi Ohmae, a business and corporate strategist. The 3C’s model
points out that a strategist should focus on three key factors for success. In the construction of a business strategy, three main players must be taken into account: A. The Corporation B. The Customer C. The Competitors Only by integrating these three C’s (Corporation, Customer, Competitors) in a strategic triangle, a sustained competitive advantage can exist. Ohmae refers to these key factors as the three C’s or strategic triangle.The Corporation The Corporation needs strategies aiming to maximize the corporation’s strengths relative to the competition in the functional areas that are critical to achieve success in the industry. Selectivity and sequencing The corporation does not have to lead in every function to win. If it can gain decisive edge in one key function, it will eventually be able to improve its other fun
The 7S McKinsey model 2007-11-18 00:15:00 Most of us grew up learning about 'the 4Ps' of the marketing mix: product, price, place, promotion. And this model
still works when the focus is on product marketing. However most developed economies have moved on, with an ever-increasing focus on service businesses, and therefore service marketing. To better represent the challenges of service marketing, McKinsey developed a new framework for analyzing and improving organizational effectiveness, the 7S model: The 3Ss across the top of the model are described as 'Hard Ss':
BCG matrix 2007-11-17 14:59:00 The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash. It has 2 dimensions: market share and market growth. The basic idea behind it is that the bigger the market share a product has or the faster the product's market grows the better it is for the company. Placing products in the BCG matrix results in 4 categories in a portfolio of a company: 1. Stars (=high growth, high market share)- use large amounts of cash and are leaders in the business so they should also generate large amounts of cash.- frequently roughly in balance on net cash flow. However if needed any attempt should be made t
Porter's Five Forces Model 2007-11-17 14:34:00 The Porter
’s 5 Forces
tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you’re looking to move into. With a clear understanding of where power lies, you can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. This makes it an important part of your planning toolkit. Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable. Howev
Porter’s Diamond Model & Clusters 2007-11-17 14:24:00 A. The Diamond as a System The points on the diamond constitute a system and are self-reinforcing. Domestic rivalry for final goods stimulates the emergence of an industry that provides specialized intermediate goods. Keen domestic competition leads to more sophisticated consumers who come to expect upgrading and innovation. The diamond promotes clustering. Porter
provides a somewhat detailed example to illustrate the system. The example is the ceramic tile industry in Italy. Porter emphasizes the role of chance in the model. Random events can either benefit or harm a firm’s competitive position. These can be anything like major technological breakthroughs or inventions, acts of war and destruction, or dramatic shifts in exchange rates. When there is a large industry presence in an area, it will increase the supply of specific factors (ie: workers with industry-specific training) since they will tend to get higher returns and less risk of losing employment. At the same time, upstr
Reference Groups 2007-11-16 10:39:00 A group with which the customer identifies in some way, and whose opinions and experiences influence the customer's behaviour. For example, a sports fan might buy a brand of equipment used by a favourite team.Reference groups come in several different forms. The aspirational reference group refers to those others against whom one would like to compare oneself. For example, many firms use athletes as spokespeople, and these represent what many people would ideally like to be. Associative reference groups include people who more realistically represent the individuals’ current equals or near-equals—e.g., coworkers, neighbors, or members of churches, clubs, and organizations. Finally, the dissociative reference group includes people that the individual would not like to be like. For example, the store literally named The Gap came about because many younger people wanted to actively dissociate from parents and other older and "uncool" people. Reference groups come with various degrees Read more:Groups
GRP and TRP 2007-11-24 02:02:00 GRP (short for Gross Rating Point) is the sum of ratings achieved by a specific media vehicle or schedule. It represents the percentage of the target audience reached by an advertisement. If the advertisement appears more than once, the GRP figure represents the sum of each individual GRP. In the case of a TV advertisement that is aired 5 times reaching 50% of the target audience, it would have 250 GRP = 5 x 50% -- ie, GRPs = frequency x % reach.A Target Rating Point (TRP) is a measure of the purchased target rating points representing an estimate of the component of the target audience within the gross audience. Similar to GRP (short for Gross Rating Point) it is measured as the sum of ratings achieved by a specific media vehicle of the target audience reached by an advertisement. For example, if an advertisement appears more than once, reaching the entire gross audience, the TRP figure represents the sum of each individual GRP multiplied by the estimated target audience in the gross
Unique Customer Perception (UCP) 2007-11-20 23:07:00 Marketing is a domain which is dynamic i.e. involves change, an important phenomenon not to be overlooked. We have come across a term “Unique Selling Proposition”(USP) which companies feel as a constant factor . Every organisation is an open system of management which means change is inevitable and is associated with environmental factors. Companies need to focus not only on USP of their products but also on the “Unique CustomerPerception
”(UCP) of the final end users.The prop of marketing is based on the need identification and the USP's are prepared based on the identified needs . If the needs are wrongly identified then even the USP's which are unique to the product would not serve the purpose. USP identifies a product/service from its competitors while UCP is the perception or picture a customer develops from all types of promotional inputs from the company about their product or service. It is often seen that some brands do extremely well compared to other brands having
The Missing Metric: Measuring Shelf-Space Profitability 2007-11-30 11:30:00 The shelf may well be the most precious real estate in the consumer-retail value chain: In some categories, as much as 80 percent of all purchase decisions are made at the point of sale. Regardless of how much effort went into promotion or product design, the shelf is the point where the consumer meets the retailer, the brand, and the product. The outcome of all those relationships and the buying decision depends entirely on what happens halfway down Aisle 2. Yet surprisingly little is known about that interaction. In fact, many crucial shelf-space questions are still surprisingly difficult for retailers and manufacturers to answer on the basis of anything but gut instinct. How much is this store’s shelf space worth? What products and brands would make the most profitable use of my space? What products and assortments drive the greatest growth at the shelf? How do I make sure that these are the products my customer wants? These essential questions are still very difficult for retaile Read more:Missing
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Methods used for valuing brands 2007-11-30 04:14:00 A number of authors and consulting firms have proposed different methods for brand valuation. The different methods consider that a brand’s value is:1. The market value of the company’s shares.2. The difference between the market value and the book value of the company’s shares (market value added). Other firms quantify the brand’s value as the difference between the shares’ market value and their adjusted book value or adjusted net worth (this difference is called goodwill).3. The difference between the market value and the book value of the company’s shares minus the management team’s managerial expertise (intellectual capital).4. The brand’s replacement value4.1. Present value of the historic investment in marketing and promotions.4.2. Estimation of the advertising investment required to achieve the present level of brand recognition.5. The difference between the value of the branded company and that of another similar company that sells unbranded products (generic p Read more:Methods
Consumers’ Paradigms: A Challenge for Retailers 2007-11-28 11:41:00 Source: Booz Allen Hamilton: Retail Innovation in Latin AmericaConsumers know that they can’t have it all, in terms of getting the best of everything, all the time. Most purchasing decisions involve some form of trade-off in light of constraints such as price, distance, time to shop, or credit.Our study revealed that consumers have preconceived notions of how to address these trade-offs in the retail world. Whether these notions reflect negative experiences or simply consumers’ perceptions, they often hide frustrations and desires in equal measure. We call these preconceived notions “consumers’ paradigms” and they are associated with the trade-offs that need to be made with respect to products, services, design, quality, assortment, and location.Although not exhaustive, the following paradigms are based on our fieldwork and reflect the most relevant information at the time of this research. While the concept of trade-offs is applicable to most income classes, our analysis and Read more:Challenge
CMO Thought Leaders: A Snapshot 2007-11-27 07:58:00 The book explores how leading marketers are grappling with and surmounting the challenges of heightened customization demands, fragmentation of media and markets, growing pressure for returns on marketing investments, and other crucial issues. Key Challenges What the CMOs Are Talking About Put the Consumer at the Heart of Marketing Read more:Leaders
Essar to invest Rs 1,200 cr in telecom retail expansion 2007-12-07 02:34:00 Essar Telecom Retail has entered into an agreement with the UK-based Virgin Group for brand licensing, technical and consultancy services for its mobile phone retail chain. Virgin will provide its expertise in branding, customer care, store operations and staff training, and will also get royalty for use of its name. The logo `Powered by Essar & Virgin' will accompany the store name of `The MobileStore'. Telecom retail, it seems, is the latest buzzword in India, with Essar Telecom Retail, a unit of Essar Group, planning to increase the number of its stores from 250 at present to 2,500 by 2010. The company will invest
Rs 1,200 crore over the next three years in its multi-brand telecom retail stores that operate under the brand name of MobileStore. The company will also increase its headcount from 1,500 to 10,000 by 2010 and expects to close the fiscal with a revenue of Rs 1,000 crore. With this, it joins players like HotS Read more:Essar
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