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
Tropicana Twister Vs. Minute Maid 2007-10-23 23:09:00 Indian Market Size:Juices and Fruit Drinks: Rs 5,000 crore Carbonated drinks: Rs 6,000 crore (cola, lime and orange) A huge chunk of the Juices and Fruits drinks is unorganized, with respect to volume almost 90%. Pepsi's StrategyThe launch of Twister
, already successful in Vietnam, will do more than add another brand to the shelves. It will mark Pepsi’s entry into a segment in India that has opened up with the entry of Minute
Maid, which, full of orange pulp, is neither pure juice like Tropicana nor plain fruit drink like Coke’s own mango drink Maaza. Unfortunately, this new brand Twister can be ill-equipped in order to take on Minute Maid in order to maintain a competitive advantage due to its association with the brand Tropicana. Tropicana Twister might be perceived as an extension to the pure juice family of Tropicana. Twister is also similarly named to Dabur Real's Twist, which hosts a combination of fruits for its juices range.Coca Cola's Strategy Coca-Cola might be te
Coca-Cola: “Little Drops of Joy” 2007-10-23 07:04:00 Coca-Cola India unveiled its ‘5-Pillar’ growth strategy to further strengthen its bonds with India. The strategy focuses on People, Planet, Portfolio, Partners and Performance. The Company announced a range of initiatives under each of the 5 pillars and also unveiled its integrated communication initiative-“Little Drops
of Joy” which aims to reinforce the Company’s ‘connect’ with stakeholders in India using a single platform. Each initiative that announced are drops of a larger vision aimed at mutual growth and development. Over the last few years, the company continuously engaged with a large number of stakeholders and has incorporated their learnings in refining its strategy for India. The integrated communication platform of “Little Drops of Joy” is a tribute to their valuable inputs and truly depicts what the Company has always stood for. ‘Little drops of joy’ is also about mother-branding the offering from the house of Coke. In many ways, the campaign is a c
Points of Difference & Points of Parity 2007-10-21 16:43:00 Point of difference (POD) is a term used for an outcome of product differentiation. In business economics, differentiation is seen as an important strategic move for companies to make. Because of an overwhelming variety of products and services on the market, those that stand out in some manner are better noticed by consumers. There are various (positive and negative) ways of being different compared to competitors in the same market. Differentiation is the term given to the positive way in which a company's product differs from its competitors. Points
of difference (PODs) describe the individual factors of differentiation. The key points of difference of a company are synonymous with its unique selling proposition (USP), and are critical in defining its competitive advantage and branding strategy. They must be attributes or benefits that consumers strongly, uniquely, and positively associate with the company's brand; and not with any competing brand. Once points of difference have b
Indian Loyalty examples 2007-10-20 23:57:00 As in continuation of the previous post on Retail Loyalty
programs: http://fmcg-marketing.blogspot.com/2007/10/loyalty-programs-in-india.htmlPantaloon Retail Pantaloon offers loyalty programs for three different retail store formats:“Shakti Credit Card” exclusively for housewives at Big Bazaar stores in association with ICICI Bank. They only need to show their Big Bazaar bill of more than Rs. 500 and a lifestyle proof like club membership card etc. to use this card (at Food Bazaar outlets too). The card carries no fee and comes with a credit limit of Rs 5,000 with 50 days' credit period. Central-ICICI Bank card for its Central Mall customers. Benefits: Reward points and a zero percent EMI option. Green card for its Apparel business which has exclusive discounts and privileges with Apparel, perfumes & cosmetics, toys, Planet Sports & accessories. They practice a 4 – tier (1, 3, 5, and 7- Star) approach to cater to different segments. HUL 90% of HUL custome
Loyalty Programs in India 2007-10-20 23:25:00 1.5 million Customers since August 2006 have registered for i-Mint, an innovative co- branded loyalty program with partners like Airtel, India
n, ICICI, HPCL, and Lifestyle-International. In the program, cardholders earn points by shopping at any of the partner companies and will be made available to 5 million by 2007 end. Similarly, the new Tata Credit Card offers cardholders the opportunity to earn and redeem loyalty points across 18 brand categories through one unit. The card, in association with the SBI card and MasterCard is a partnership of leading brands across all conceivable categories like airlines, books, departmental stores, durable goods, fuel, hospitality, telecom etc. The program is three tiered and features include: global acceptance, free insurance of up to Rs. 3 million, and zero-percent balance transfer charges for up to 75 days. The above are just two examples of the new age loyalty programs emerging in the retail space in India. Loyalty
programs will only Read more:Programs
Brand Extension 2007-10-20 14:37:00 Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. Organisations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name).When done successfully, brand extension can have several advantages: • Distributors may perceive there is less risk with a new product if it carries a familiar brand name. If a new food product carries the Heinz brand, it is likely that customers will buy it • Customers will associate the quality of the established brand name with the new product. They will be more likely to trust the new product. • The new product will attract quicker customer awareness and willingness to trial or sample the product • Promotional launch costs (particularly advertising) are likely to be substantially lower.While there can Read more:Brand
, Extension
Brand asset valuator (BAV) 2007-10-19 13:57:00 The Brand
Asset Valuator (BAV) is a database of consumer perception of brands created and managed by BrandAsset Consulting, a division of Young & Rubicam Brands to provide information to enable firms to improve the marketing decision-making process and to manage brands better. Brand Asset Valuator and BAV also describe the Y&R group managing the database. BAV measures the value of a brand along four dimensions: "Differentiation," "Relevance," "Esteem," and "Knowledge." Differentiation and Relevance build up to "Brand Strength." Esteem and Knowledge are used to calculate "Brand Stature." BAV defines these terms as follows. "Differentiation" quantifies the brand's point of difference."Relevance" how appropriate the brand is to you."Esteem" how well the regarded the brand is."Knowledge" an intimate understanding of the brand."Brand Strength" describes the brand's growth potential."Brand Stature" describes the brand's current power. BAV's database is the result of the world's
Brand Resonance Pyramid 2007-10-19 13:26:00 The first level of the pyramid deals with establishing the identity of the brand. Keller suggests a single building block for this phase and terms it brand salience. In building a highly salient brand, he argues that it is important that awareness campaigns not only build depth (ensuring that a brand will be remembered and the ease with which it is) but also breadth (the range of situations in which the brand comes to mind as something that should be purchased or used).Richard Branson’s Virgin brand has achieved depth of awareness and is easily recognized and recalled in South Africa. The challenge facing the brand is to make consumers aware about its breadth and diversity of offerings including air travel, game lodges, finance, health clubs, drinks, and mobile communication. Follow the Virgin brand around the globe, and that challenge stretches to books, trains, cosmetics, jewellery, wines, radio, and even space flights in the next few years. The second layer of the pyramid deals w Read more:Brand
, Pyramid
BRANDZ: Brand equity Model 2007-10-19 07:02:00 What is the Brand
Dynamics Pyramid?For each brand, each person interviewed is assigned to one level of the pyramid depending on their responses to a set of questions. The BrandDynamics Pyramid shows the number of consumers who have reached each level.Bonding – Rational and emotional attachments to the brand to the exclusion of most other brandsAdvantage – Felt to have an emotional or rational advantage over other brands in the categoryPerformance – Felt to deliver acceptable product performance and is on the consumer's short-listRelevance – Relevant to consumer's needs, in the right price range or in consideration setPresence – Active familiarity based on past trial, saliency or knowledge of brand promisePurchasing loyalty increases at higher levels of the Pyramid - consumers at the level of Bonding are likely to be active advocates of the brand. There is also an increase in share of wallet - the proportion of consumer expenditure within the category on that brand - as you a
Household Potential Index (HPI) 2007-10-18 12:11:00 Something that is “wanted by many” but “consumed by few” is our definition of Premiumness. Simply put, premuimness is defined as the inverse of penetration. For example, 41 per cent of all homes in India have Television. Only 2 per cent have a flat TV. Hence, homes with a flat TV is considered to be “premium” by HPI measure. The concept of HPI allocates high scores for less penetrated product categories and services. On the other hand, lower scores to higher penetrated categories or mass consumed categories. Thereby, HPI eliminates judgmental factors and is therefore a more systematic approach, making it applicable across all segments of households, from the “super affluent” to the so-called “desperates”. HPI is a holistic measure of potential, and not just based on few durables. In order to ensure that a specific ownership of a durable or consumption of a particular category of FMCG or services does not result in very high scores, 50 different measures have bee Read more:Household
, Index
, Potential
Socio Economic Classification (SEC) 2007-10-18 12:00:00 A common classification that is used by marketers to describe the Indian population is the Socio EconomicClassification
(SEC). SEC is the classification of Indian consumers on the basis of two parameters: Occupation and Education of the chief wage earner (Head) of the households. The SEC classification, created in 1988, was ratified by Market Research Society of India (MRSI), is used by most media researchers and brand managers to understand the Indian consuming class. According to the SEC, the Urban Indian households are classified on the basis of the two parameters Education and Occupation into SECA1, A2, B1, B2, C, D, E1, E2. In urban households, SEC A1 include those with graduation/post graduate holding senior positions like CEO’s and Middle level managers and also those entrepreneurs having some college education and employs more than 10 staffs. The Rural Indian Households are classified into SEC R1, R2, R3, and R4. In the rural classification, the parameters are Education
Core Competency and Competitive Advantage 2007-10-18 10:00:00 A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990): It provides customer benefitsIt is hard for competitors to imitateIt can be leveraged widely to many products and markets. A core competency can take various forms, including technical/subject matter know how, a reliable process, and/or close relationships with customers and suppliers (Mascarenhas et al. 1998). It may also include product development or culture such as employee dedication. Modern business theories suggest that most activities that are not part of a company's core competency should be outsourced. If a core competency yields a long term advantage to the company, it is said to be a sustainable competitive advantage.As an example they gave Honda's expertise in engines. Honda was able to exploit this core competency to develop a variety of quality products from lawn mowers and snow blowers to trucks and automobiles. To take an exampl Read more:Advantage
, Competitive
Oglivy & Burnett Philosophies 2007-10-17 07:09:00 There are two different approaches to an advertisement as can be sen from the illustration.An ad like Reliance Mobile 'Rang Barse' ad with different people dancing in rain with various colours falls under the Burnett
philosophy.
Push and Pull Marketing 2007-10-16 12:04:00 What is pull marketing? Pull marketing is where you develop advertising and promotional strategies that are meant to entice the prospect to buy your product or service. Some classic examples are "half off!" or "bring in this coupon to save 25%" or "buy one get one free", etc. With pull marketing, you are trying to create a sense of increased, time limited value so that the customer will come into your store to buy.An example of this is a perfume product. Women do not request to smell a fragrance they never smelled before; it is simply "pushed" at them, through the right advertisement. Applied to that portion of the supply chain where demand uncertainty is relatively smallProduction & distribution decisions are based on long term forecastsBased on past orders received from retailer’s warehouse (may lead to Bullwhip effect)Inability to meet changing demand patternsLarge and variable production batchesUnacceptable service levelsExcessive inventories due to the need for large safety Read more:Marketing
Above the Line & Below the Line 2007-10-15 04:14:00 These terms may have simple definitions as will be given below, but constantly one tends to misinterpret the different forms of promotions and advertising as above-the-line or below-the-line. In an attempt to try and solve the confusion, let us look at a few different angles.Above the line-advertisingis allocated to television, radio, press, outdoor and cinema advertising Below
the line-advertisingpromotions, direct marketing, sponsorship and public relationsOrigins of the term refer back to the balance sheet – Above the Line advertising costs are part of ‘costs of sales’ and are deducted before Gross Profit is determined, non-commission baring advertising is part of the operating expenses and is deducted before Net Profit is determined.Another way to view it is 'concept' delivery versus 'tactile' delivery.So a concept media is one where you transmit ideas but nothing concrete ever passes to your audience - radio, tv, billboards and even most newspaper ads.Tactile delivery is
Kisan Seva Kendras: IOC 2007-10-14 07:33:00 Indian Oil Corporation, the country’s largest oil marketing company, has decided to step up its presence in the non-oil retail business. The company is slated to add another 1,000-odd rural marketing outlets or ‘Kisan Seva Kendras’ across the country by March 2008. Each pump has a shopping mall offering a wide range of products including seeds, fertilisers, pesticides, consumables and banking facilities. The average cost of setting up each such outlet is pegged at Rs 10-12 lakh. IOC has tie-ups with a range of corporates both in FMCG and finance sector for these outlets like, Emami, Dabur, IFCI and ICICI Bank. IOC, which recently tied up with IRCTC for sale of railway tickets through petrol pumps, has covered 250 outlets by virtue of this tie-up in states like Tamil Nadu, Punjab, Gujarat. It has also decided to add 25-30 oil retail outlets across these states. To promote its branded fuel XtraPremium (petrol) and XtraMile (diesel), IOC has launched a scheme offering instant
Rural Opportunity: Comat Technologies 2007-10-14 07:09:00 • Government Services (G2C)– Pension Schemes– Scholarship Schemes– Government Issued papers • Land Record, Birth Certificate, Marriage Certificate etc.• Business Services (B2C)– Credit and loans– Education and vocational training– Bill Payment– Insurance • Gold, Farm Assets, Crop– Healthcare• Business Services (B2B)– Products/ Services for rural businessesComat is setting up the infrastructure in rural communities– Karnataka: 800– Haryana: 290– Uttarakhand: 600– Tripura: 170– Sikkim: 45• Comat has created a “Business API”– Expand reach many states through single Business API– Revenue share model– No business outreach program required for customer accessKiosks provide the services backbone– Reliable ICT infrastructure– Technology enabled Business process re-engineering• G2C, B2C and B2B service fulfillment• Kiosks offer a low cost distribution network– Deliver multiple services through a single Kiosk– Payment co Read more:Opportunity
, Rural
Private Labels: Big Retailers 2007-10-10 08:52:00 Few examples:Big Bazaar: DreamLine, Kryo, Pure, Premium Harvest, Tasty Treat, Clean Mate and Care MateReliance: Reliance SelectSubhiksha, Spencers, Food World : Same label[The Ecomonic Times Oct. 4:]Click here to watch a video in which featured Gartner vice president Michael Maoz shares new insights on the innovative technologies and processes shaping the future of customer service.Click here to learn how Continental Dispatch Accelerates Customer Service with Hosted Contact Center SystemClick here to learn how to leverage greater long-term value from your CRM.Click here to read how Oracle has dramatically improved pipeline management and, in turn, increase sales velocity Big Bazaar isn't alone in this display of bravado. Almost every retailer in India that has acquired a certain size and scale has private label brands, which allow them to enter new categories faster than traditional marketers. And as organised retail grows in scale, Indian retailers are leapfrogging ahead, exper Read more:Labels
, Private
Hype over for hypermarkets? 2007-10-07 22:49:00 In February 2004, RPG Retail was launching its second hypermarket – Giant and had plans to open 20 more Giant hypermarkets by the end of 2006 at a total investment of Rs 10 crore for every store. Since then, things have not gone quite to plan. Giant, now renamed Spencer’s, has opened barely six stores in all in the three years since. Back in 2004, it was widely expected that the hypermarket would emerge as the dominant model in the fledgling retail space, virtually snuffing out competition from neighbourhood grocery stores. The motto was quite simply: Think Big. Yet today, what is growing, and rapidly, are the smaller retail formats - convenience stores, food and grocery and discount stores. In a period of just under a year, Subhiksha, with its 1200 sq. ft. discounting format has become the largest domestic retail chain, on the verge of become the first 1000 store chain. More interesting, the biggest entrants in the space are all thinking small - whether
Largest retailer of cell phones in India: Univercell 2007-10-07 13:08:00 Largest retailer of cell phones in India
, Univercell was started a decade back with merely five employees and today they are 1000 employee strong and have opened 100 showrooms across South India. "When I entered the cell phone retail market, my belief in myself was my strongest selling point,” says D Sathish Babu, MD, Univercell, “In 1997 I started out with just five employees and we were mainly dealing with selling phone connections. But it was just a matter a time that I realized that there was a dearth of legal retail outlets for handsets. Customers went to the grey market looking for variety but I gave them retail therapy they could never get at the grey market – a charming ambience, cordial service, phones with warranty and after sales service. This is also the basis of our brand identity” Despite a competitive market, Univercell continues to grow exponentially, Sathish babu explains, “It is simple, we sell more; we buy more. Because of the volumes we deal in, we are in Read more:Largest
Reebok Visual Merchandising 2007-10-07 12:46:00 These are pictures from the Reebok
showrooms in South Delhi.They are different from Nike, Adidas and Puma if you can notice the main differences.The display of the shoes is stacked up all the way till the ceiling, Reebok believes in displaying all it merchandise. It can be looked at in two ways:1) Efficient utilization of the store space (+ ve)2) Too many products for the customer to handle ( - ve)Hence instead of the traditional display of just about 6.5 feet, this goes way up till around 12 feet (if that much space is available) Read more:Visual
Malls & multiplexes in Chennai 2007-10-05 01:12:00 A mall and multiplex wave is set to sweep across Chennai
, with over 20 malls planned in the next three years. The city, where India’s first mall, Spencer Plaza, was set up in 1975, is expected to absorb over Rs 3,000 crore in the coming years. Realty majors such as Prestige Group, Shriram Properties and DLF are in the forefront of mall development in the city and beyond. Bangalore-based Prestige is drawing up plans for a second Forum mall in the city’s artery, Mount Road, while completing the first Rs 350-crore Forum mall at Vadapalani in Chennai, in collaboration with Vijaya Group. The Vadapalani mall, spread over 17 lakh square feet, will feature a seven-screen multiplex, over 100 shops, two departmental stores, a 1,40,000 square feet hypermarket. The mall is expected to become operational in the first quarter of 2010. August 31, 2007 Source: Business Standard Read more:multiplexes
Manihaaris & Viral Marketing 2007-10-03 23:28:00 The Manihaaris form a robust viral marketing system where they recommend complementary products to the customers.The rural customers listen to the Manihaaris in order to choose from an array of products.Manihaari Bazaar popularly known as Manihaari Lane, is located in centre of Chowk Bazaar of Banda.Popular among the women folk for shopping of Cosmetic Products and Chuddis (Bangles). Thus Market's Economy is totally dependent on women. This Market was set up 80 years ago during British Period. It was dominated by Manihaars (a class of people who are mainly small scale home made goods sellers). Thus the market was named by British Rulers as Manihaari Lane. Started with Few shops, Market has now grown to a big one. The total no. of shops has reached to about 80 where goods worth about Rs. 1/2 million are sold everyday. The Market has once changed its palce from chowk ba Read more:Marketing
, Viral
Self Help Groups: HUL Project Shakti 2007-10-03 22:37:00 How The SHGs Work Inspired by the success of women Self Help Groups
(SHGs) in Bangladesh---these are primarily thrift and savings group consisting of 15-20 people---the Government of India promoted these groups in India in the mid-1980s, which were set up with either NGO or state government support. These provide rural women a platform to save money---they keep pooling money, save in a bank, and by the end of the year, they get a matching loan from the same bank. This way, the group's corpus doubles, and individual members can borrow internally from the group and start a business. These groups are increasingly being used by the government for social development. In Andhra Pradesh, for instance, all government schemes, the pulse polio programme or the LPG (cooking gas) connections are routed through these groups. There are around 6 lakh SHGs in the country. Typically, each of these group sav Read more:Project
BPCL Retail Outlets: 'Ghar' 2007-10-25 10:47:00 Indo-Asian News ServiceIn a bid to expand its presence in the expanding Indian retail market, the state-run oil major Bharat Petroleum Corp Ltd (BPCL) said that the company will invest Rs 6 billion in retail over the next five years.The BPCL plans to set up about 250 retail outlets called 'Ghar' to sell its fuel products. These outlets would also offer customers non-fuel facilities like shopping, entertainment and eateries."We are planning to open around 250 outlets, each having a 'dhaba' kind of ambiance, offering shopping and entertainment experience," said Subankar Sen, BPCL's senior manager of allied retail business."At present we have 16 such outlets across the country, each with 40 per cent fuel-based business and the reminder comprising non-fuel activities like shopping, entertainment and eateries," Sen added."The company is primarily focusing on urban areas, keeping in view the increasing number of people traveling on highways, and travelers becoming more demanding," said Read more:Retail
JWT Creative Brief 2007-10-24 14:27:00 The JWT creative brief can be used to assess any advertisement (TV/Print etc.)1. What is the Opportunity and/or Problem which the advertising must address?A brief summary of why you are advertising. Take the consumer’s point of view, not “sales are down,” but, rather “consumers are choosing cheaper alternatives.”2. What do we want people to do as a result of the advertising?3. Who are we talking to?Try to develop a rich description of the Target Group.Indicate their beliefs and feelings about the category.Avoid demographic information only. Add personality and lifestyle dimensions.4. What is the Key Response we want from the advertising??“State succinctly, what single thing do we want people to feel or notice or believe as a result of advertising.”5. What information/attributes might help produce this response?It could be a key product attribute, a key user need which the brand fulfills, etc.Avoid a laundry list.6. What aspect of the Brand Personality should the advertisi Read more:Brief
Pricing Strategies 2007-11-01 07:28:00 Premium Pricing
. Use a high price where there is a uniqueness about the product or service. This approach is used where a a substantial competitive advantage exists. Such high prices are charge for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights. Penetration Pricing. The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom in order to Economy Pricing. This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc. Price Skimming. Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Read more:Strategies
Services Marketing 2007-10-30 09:25:00 A service is the action of doing something for someone or something. It is largely intangible (i.e. not material). A product is tangible (i.e. material) since you can touch it and own it. A service tends to be an experience that is consumed at the point where it is purchased, and cannot be owned since is quickly perishes. A person could go to a café one day and have excellent service, and then return the next day and have a poor experience. So often marketers talk about the nature of a service as: Inseparable - from the point where it is consumed, and from the provider of the service. For example, you cannot take a live theatre performance home to consume it (a DVD of the same performance would be a product, not a service). Intangible - and cannot have a real, physical presence as does a product. For example, motor insurance may have a certificate, but the financial service itself cannot be touched i.e. it is intangible. Perishable - in that once it has occurred it cannot b Read more:Marketing
, Services
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