formatted word thesis vikas

CH 1.1 DEFINITIONS OF ADVERTISING

The t e rm "ADVERTISING " o r i g ina t e s f rom the La t i n word

"adver tere" which means t o " t u rn t he mind t owards" . The d i c t i ona ry

mean ing o f t he t e rm adve r t i s i ng i s " t o g ive pub l i c no t i c e o r t o announce

pub l i c i t y " . Th i s sugges t s t ha t ad s a r e u se fu l f o r d r awing t he a t t en t i on o f

peop l e t owards a spec i f i c p roduc t / s e rv i ce /manufac tu r e r .

Acco rd ing t o "DAVID POTTER" , "The on ly in s t i tu t i on we have for

in s t i l l ing new needs , f or t ra in ing peop le to ac t a s consumers , f or

a l t er ing men ' s va lues and thus for has t en ing the i r ad jus tment to

po ten t ia l abundance i s adver t i s ing" .

Accord ing t o "DUNN AND BARBON" 'Adver t i s ing i s a pa id non-

persona l communica t ion through var ious med ia by bus ines s f i rms ,non-

pro f i t s organ i sa t ion and ind iv idua l s who are in some way indent i f i ed

in the adver t i s ing message and who hope to in form or persuade

members o f a par t i cu lar aud ience ' .

Accord ing t o “DAVID OGILVY” ‘Adver t i s ing i s ev i l when i t adver t i s e s

ev i l th ings ’

As sa id by JAGDEEP KAPOOR, Marke t i ng Guru “JO DIKTA HAI , WOH

BIKTA HAI”

1 | P a g eIIPM/FW/08-10/MUM/HR/148

Advertising Objectives

Sales Oriented ObjectivesCommunication Oriented Objectives

CH 1.2 TWO DISTINCT SCHOOLS OF THOUGHT

What shou ld be o r wha t cou ld be t he ob j ec t i ve s fo r adve r t i s i ng? A

con t rove r sy a round t h i s ques t i on i s s t i l l r unn ing ho t i n t he ad wor ld .

One schoo l ho ld s t ha t ad ha s t o nece s sa r i l y b r i ng i n more sa l e s and

t he r e fo re ad ob j ec t i ve s shou ld ce r t a i n ly i nc lude s a l e s g rowth .

The second and d i ame t r i c a l l y oppos i t e v i ew i s t ha t ad i s e s sen t i a l l y

a communica t i on t a sk and i t shou ld have on ly commun ica t i on goa l s , o r

goa l s i n t ended t o shape t he awa renes s and a t t i t udes o f consumer s

A to S : ADVERTISING TO SALES

What i s t he s i ng l e t h ing you wan t you r consumer t o r emember abou t

you and wha t i s i t t ha t he o r he mos t r emember s abou t you r compe t i t o r .

Mu l t i na t i ona l s s e l l i ng f a s t mov ing consumer goods fo l l ow a s imp le

p r i nc ip l e – a t o s : adve r t i s i ng t o s a l e s . Your adve r t i s i ng budge t comes ou t

o f you r s a l e s f i gu re s . So when you s e l l more you ge t a chance t o do b igge r

and be t t e r ad s t ha t t e l l more . And depend ing on how you p ro j ec t t he nex t

yea r ' s s a l e s you ba l ance you r adve r t i s i ng budge t a cco rd ing ly . So you s e l l

more be fo re you t e l l more .


CH 1.3 ADVERTISING OBJECTIVES IN RELATION TO P L C.

Af te r unde r s t and ing t he d i f f e r en t mode l s u sed fo r adve r t i s i ng

ob j ec t i ve s , we can r e l a t e t hem to t he p roduc t l i f e cyc l e o f a b r and . I t i s

s een c l ea r l y f rom the fo l l owing d i ag ram. I t a l so en l i gh t ens t he t h r ee k inds

o f adve r t i s emen t s , wh i ch i s common ly u sed ove r t he p roduc t l i f e cyc l e .

Th i s he lp s a ma rke t e r t o unde r s t and whe re exac t l y h i s p roduc t l i e s , and

wha t k ind o f adve r t i s emen t s he needs i n o rde r t o mee t i t s ob j ec t i ve s .

In format ive :

I t i s u s e d t o d e v e l o p i n i t i a l d e m a n d , t y p i c a l l y u s e d i n t h e i n t r o d u c t o r y

s t a g e o f t h e P L C E x a m p l e : P r i n t a d o f a P r i n t e r g i v i n g d e t a i l s a b o u t i t s

s p e c i f i c a t i o n s

Persuas ive :

I t i s u s e d t o i n c r e a s e d e m a n d f o r a n e x i s t i n g p r o d u c t . I t h a s a

c o m p e t i t i v e t y p e o f p r o m o t i o n a n d i s t y p i c a l l y u s e d i n t h e g r o w t h a n d e a r l y

m a t u r i t y s t a g e o f t h e P L C E x a m p l e M c D o n a l d ’ s P r i n t A d

Reminder :

I t i s u s e d t o r e i n f o r c e p r e v i o u s p r o m o t i o n b y k e e p i n g t h e n a m e o f t h e

p r o d u c t b e f o r e t h e m a r k e t , t y p i c a l l y u s e d i n t h e l a t e m a t u r i t y a n d d e c l i n e s t a g e

o f t h e P L C E x a m p l e : C h l o r m i n t , a l s o A m u l h a s c o n s t a n t r e m i n d e r a d s u s i n g

h u m o u r r e l a t e d t o c u r r e n t e v e n t s .


(P2)

CH 1.4 MEDIA IN ADVERTISING FOR FMCG’S

Adve r t i s i ng i s dynamic . I t changes w i th t he chang ing marke t , chang ing

l i f e s t y l e , chang ing me thods o f d i s t r i bu t i on and chang ing pa t t e rn s o f

consumpt ion . I n t he mode rn wor ld o f adve r t i s i ng , t he ma rke t e r s t o

commun ica t e abou t p roduc t and s e rv i ce t o t he cus tomer s a s we l l a s t he

p ro spec t i ve buye r s a r e pu t t i ng d i f f e r en t t ypes o f med i a i n to u se .

I n Ind i a , newspape r s , magaz ine s , r ad io , t e l ev i s i on , hoa rd ings , c ab l e

ne twork , ou tdoo r , dea l e r ne twork , e t c . cons t i t u t e t he impor t an t med i a pu t

t o e f f ec t i ve u se by t he manufac tu r e r s o f consumer du rab l e s . Of t he

va r i ous med i a s , t e l ev i s i on en joys d i s t i nc t supe r io r i t y ove r t he r e s t

because o f i t s aud io - v i sua l impac t . Newspape r s , magaz ine s , r ad io ,

ou tdoo r t oo p l ay impor t an t r o l e i n adve r t i s emen t e f fo r t s o f t he ma rke t e r s .

The va r i ous adve r t i s i ng med i a s a r e :

NEWSPAPERS: Newspape r s a r e o f d i f f e r en t t ypes . They a r e

na t i ona l , r eg iona l and l oca l a s f a r a s t he i r cove rage i s conce rned .

Newspape r s fo rm the mos t popu l a r adve r t i s i ng med ium, due t o t he

ve r sa t i l i t y o f i t s cha rac t e r . Na t i ona l newspape r s c an be u sed fo r a

w ide r appea l . Loca l newspape r s a f fo rd t he means fo r i n t ens ive

adve r t i s i ng . Newspape r s a r e t he be s t med i a fo r t he s a l e o f consumer

du rab l e s , a r t i c l e s o f u t i l i t i e s , beau ty and l uxu ry .

Example : THE TIMES OF INDIA, THE ECONOMIC TIMES,

LOKSATTA, NAVBHARAT TIMES.


MAGAZINES : Magaz ine s a l so p l ay a s i gn i f i c an t r o l e i n

adve r t i s i ng . The va r i ous t ypes o f magaz ine s a r e consumer , f a rm ,

bus ine s s , t r ade , i ndus t r i a l & p ro fe s s iona l magaz ine s . Fo r a r t i c l e s

o f u t i l i t y , beau ty and l uxu ry , wh ich t he educa t ed masse s a r e

l i ke ly t o demand more , t he cu r r en t newspape r s and magaz ine s

a r e more su i t ab l e .

E xample : FEMINA, OUTLOOK, A & M, e t c .

POSTERS : A pos t e r i s a shee t o f pape r con t a in ing a

message and i s pa s t ed on t he f a ce o f a pane l . The

adve r t i s emen t i s p r i n t ed o r pa in t ed on c a rdboa rds , me t a l l i c

shee t s , ha rdboa rd , e t c . and a r e exh ib i t ed a t r a i lway s t a t i ons ,

p l a ce s o f en t e r t a i nmen t , busy s t r e e t s , e t c . Expe r t adve r t i s i ng

agenc i e s a r e emp loyed f o r p r epa r ing pos t e r and f o r ge t t i ng

su i t ab l e s i t e s r en t ed .

PAINTED DISPLAYS : These a r e s im i l a r i n appea l l i ke

pos t e r s , pa in t ed d i sp l ays on boa rds o r wa l l s c anno t be a s

many a s pos t e r s . Pos t e r s may be p r i n t ed s imu l t aneous ly i n

t housands , whe rea s t he wa l l s o r boa rds pa in t ed a r e l im i t ed i n

number . Pos t e r r equ i r e r ep l acemen t f r om whe rea s pa in t ed

d i sp l ays a r e pe rmanen t .

NEON SIGNS : Glas s t ubes / s i gns w i th e l e c t r i c w i r i ng a r e

ga in fu l l y emp loyed t o make t he message a t t r a c t t he a t t en t i on

o f pa s se r s by t he co lou r fu l l i gh t s on t he da rk backg round o f

a n igh t . Neon s i gns have g l amour . They a r e b r i gh t and c a t chy

& they e a s i l y a t t r a c t t he a t t en t i on and educa t e t he p ro spec t

even f r om a d i s t ance . Example : MCDONALDS .


SANDWICH BOARDS : Sandwich boa rd i s one o f t he popu l a r

me thods o f ou tdoo r adve r t i s i ng i n r u r a l a r ea s . The messenge r s

a r e appo in t ed by t he adve r t i s e r t o c a r ry adve r t i s i ng boa rds on t he

s i de s o f bo th t he shou lde r s . The c r ea t i on o f d r ama t i c e f f ec t i s one

o f t he spec i a l me r i t s .

DIRECT MAIL: Di rec t ma i l i s adve r t i s i ng add re s sed t o i nd iv idua l s

t h rough t he agency o f pos t . These p rospec t s a r e s e l ec t ed f rom

among t he peop l e i n a pa r t i cu l a r l oca l i t y on ba s i s o f ma i l i ng l i s t .

RADIO : Rad io i s t he cheapes t and t he mos t pe rva s ive o f a l l

med i a o f mas s commun ica t i on . Rad io pub l i c i t y t ake s t he fo rm o f

commerc i a l songs , d r ama t i c d i a logues , op in ions o f popu l a r f i gu re s

l i ke c r i cke t p l aye r s , f i lm s t a r s , e t c . P roduc t s l i ke soaps , co sme t i c s ,

con fec t i one ry , f i lms , e t c .

TELEVISION : The popu l a r i t y o f r ad io pub l i c i t y ha s

g r adua l l y been t aken ove r by t e l ev i s i on . T .V . p rov ide s a

s c i en t i f i c synch ron i za t i on o f f e a tu r e s o f sound , s i gh t , mo t ion

and qu i cknes s t ha t no o the r med ium ha s been ab l e t o p rov ide

so f a r . A va r i e t y o f t e chn iques a r e ava i l ab l e t o t he adve r t i s e r l i ke

c a r t oons , documen ta ry f i lms .

FILMS : Fi lm pub l i c i t y means exh ib i t i on o f f i lms o r s l i de s i n

c i nema ha l l s a l ong w i th a p i c t u r e o r i ndependen t l y . Th i s

med ium ha s become more e f f ec t i ve due t o r ap id

i ndus t r i a l i z a t i on and compe t i t i on . Luxury i t ems , f ancy a r t i c l e s ,

spec i a l i t y a r t i c l e s , e t c a r e adve r t i s ed i n such t hea t r e s .


WEB ADVERTISING : Web adve r t i s i ng i nco rpo ra t e s t he u se

o f web space a l l oca t ed i n t he i n t e rne t , wh i ch i s w ide ly u sed

i n t he mode rn wor ld . I n web adve r t i s i ng , t he sponso r se r s o f t he

p roduc t pay a nomina l amoun t t o t he s i de hos t s who a l l oca t e a

pa r t i cu l a r amoun t o f space i n t he i r webs i t e t o adve r t i s e t he p roduc t .

POINT OF PURCHASE ADVERTISING : Po in t o f Pu rchase

adve r t i s i ng means t he adve r t i s i ng a t a p l a ce and t ime when

t he p ro spec t i ve buye r a r r i ve s i n t he ma rke t f o r pu rchas ing

t he goods f i na l l y . Po in t o f Pu rchase adve r t i s i ng i s t he l a s t

oppo r tun i t y t o an adve r t i s e r t o p romote a s a l e .

WINDOW DISPLAY: Window d i sp l ay med i a i s u sed t o a t t r a c t

pe r sons i n to t he shop by su f f i c i en t l y a rous ing t he i r i n t e r e s t . Th i s

d i sp l ay shou ld wa t ch t he i n s ide d i sp l ay .

E xample : KHUSBOO, PAANERI .

EXHIBITIONS AND FAIRS: Many b ig manufac tu r e r s and

bus ine s smen pa r t i c i pa t e i n t he va r i ous exh ib i t i ons and f a i r s and

a r r ange shows by open ing t he i r s t a l l . Exh ib i t i ons a r e u se fu l f o r he

buye r s , who can v i ew in one p l ace t he d i f f e r en t r equ i r emen t s o f t he

i ndus t ry w i th wh ich t hey a r e connec t ed . Exh ib i t i ons may be

o rgan i zed a t l oca l , na t i ona l o r i n t e rna t i ona l l eve l .

SKY ADVERTISING: Unde r t h i s f o rm o f adve r t i s i ng an ae rop l ane

wr i t e s t he name o f t he p roduc t i n t he sky . No t i c e s and o the r

adve r t i s emen t ma t e r i a l such a s p r i n t ed ba l l oons e t c . a r e d ropped

f rom the sky .


COUPONS : Coupon u se ha s been ve ry popu l a r i n r e cen t

yea r s . The coupon i s an ex t ens ion o r va r i a t i on o f t he consumer

dea l s t r a t egy . Each coupon o f f e r s a p r i c e r educ t i on on a

spec i f i c i t em i n t he manufac tu r e r ’ s p roduc t l i ne . The advan t age

o f coupon ove r spec i a l p r i c e s i s t ha t t he p roduc t i s neve r

ma rked a t a p r i c e l owe r t han t he e s t ab l i shed one .

CONTESTS : Con t e s t s a r e a l so sponso red by some f i rm t o

a t t r a c t add i t i ona l cu s tomer s . Unde r con t e s t , t he consumer i s

r equ i r ed t o pu rchase one un i t o f t he sponso r ’ s p roduc t , and t he

en t r an t ha s equa l chance t o w in p r i c e s wh i ch c a r ry

cons ide rab l e a t t r a c t i ons . The succe s s o f a con t e s t depends t o a

g r ea t ex t en t on how we l l consumer s a r e i n fo rmed o f i t s

ex i s t ence . Adve r t i s i ng c an do a g r ea t dea l t o engende r pub l i c

i n t e r e s t i n a consumer con t e s t .

PREMIUMS : P r emiums a r e f r e e g i f t s o r bonus i t ems

d i s t r i bu t ed f r e e w i th t he pu rchase o f ano the r p roduc t . Fo r

example , “Buy Th ree , Ge t One F r ee” . P r emium i s t i ed t o

cu r r en t s a l e s . The p r emium i s o f f e r ed t o t he cu s tomer a s a

r e a son f o r buy ing t he i t em , t he p r emium comes a s a g i f t .

P r emium a r e u sed t o s t imu la t e i ndus t r i a l and t r ade buy ing .


CH 2.1 CONCEPT OF FAST MOVING CONSUMER GOODS

The FMCG (Fas t Mov ing Consumer Goods ) I ndus t ry compr i s e s o f

goods wh ich a r e mass u se goods d i r ec t l y consumab le , packaged and

b r anded hav ing s i gn i f i c an t demand i n l ow to m idd l e i ncome s t r a t a and

above a l l a r e h igh ly p r i c e s ens i t i ve .

The FMCG Indus t ry i n Ind i a i s t he t h i rd l a rge s t I ndus t ry a f t e r

Tex t i l e s and Pe t ro l eum wi th a t u rnove r o f ove r Rs .80 ,000 c ro re s . I t s

pa r t i c i pan t p ro f i l e i s ex t ens ive and i nc ludes food and r e l a t ed p roduc t s

such a s t e a , s a l t , t obacco , o i l s , f a t s and p roce s sed foods , pe r sona l c a r e

p roduc t s such a s soaps , de t e rgen t s , ha i r o i l s , t o i l e t r i e s and den t a l

p roduc t s .

The FMCG va lue cha in i s va s t cove r ing f a rmer s who manufac tu r e t he

p r ima ry p roduc t s t o t he consumer s who consume the u l t ima t e f i n i shed

goods . The va lue cha in i nc ludes t r anspo r t e r s , manufac tu r e r s , c a r ry ing &

fo rwa rd ing agen t s , d i s t r i bu to r s and r e t a i l e r s .

The marke t f o r consumer goods can be d iv ided i n to 3 ba s i c

The FMCG sec to r cons i s t s ma in ly o f sub s egmen t s v i z . pe r sona l

c a r e , o r a l c a r e and househo ld p roduc t s . Th i s c an be fu r t he r sub -d iv ided

i n to o r a l c a r e , soaps and de t e rgen t s , Hea l t h and Hyg iene p roduc t s , beau ty

cosme t i c s , ha i r c a r e p roduc t s , f ood and da i ry -ba sed p roduc t s , c i ga r e t t e s .


Market for Consumer Goods

Consumer DurablesEg: TV, Furniture etc.

Consumer Non–DurablesEg: Paints and Lubricants

FMCGEg: Cosmetics, Beverages

CH 2.2 CHARACTERISTICS OF FMCG MARKET

The key cha rac t e r i s t i c s o f t he Ind i an FMCG marke t a r e a s f o l l ows :

Heavy l aunch cos t s : Compan ie s i ncu r huge cos t s on t he l aunch o f

new p roduc t s . The en t i r e l aunch p roce s s goes t h rough a s e r i e s o f

p roce s se s such a s p roduc t deve lopmen t , ma rke t r e sea r ch , t e s t

ma rke t i ng . A l l t h i s r equ i r e huge ca sh ou t f l ow . Fu r the r , i n o rde r t o

bu i l d b r and awarenes s and deve lop f r anch i s e fo r a new b rand i n i t i a l

expend i t u r e i s i ncu r r ed on l aunch adve r t i s emen t s , f r e e s amp le s and

p roduc t p romot ions . Launch cos t s a r e a s h igh a s 50 -100% o f r evenue

i n t he f i r s t yea r and t he se cos t s p rog re s s ive ly r educe a s t he b r and

ma tu re s , ga in s consumer accep t ance and t u rnove r r i s e s . Fo r

e s t ab l i shed b r ands , adve r t i s emen t expend i t u r e va r i e s f rom 5 - 12%

depend ing on t he ca t ego r i e s . I t i s common to g ive occa s iona l push

by r e - l aunches , wh ich i nvo lve s r epos i t i on ing o f b r ands w i th s i z ab l e

ma rke t i ng suppo r t .

Less cap i ta l in t ens ive : The s ec to r i s no t so c ap i t a l i n t ens ive a s

ma jo r i t y o f t he p roduc t c l a s se s r equ i r e ve ry l ow inves tmen t i n f i xed

a s se t s . The s ec to r i s a l so cha rac t e r i z ed by h igh t u rnove r t o

i nves tmen t r a t i o ; t u rnove r i s t yp i ca l l y f i ve t o e i gh t t imes t he

i nves tmen t made i n a Green f i e ld p l an t a t f u l l c apac i t y . Ano the r

r e a son fo r t he s ec to r be ing l e s s c ap i t a l i n t ens ive i s t ha t bu lk o f s a l e s

f rom manufac tu r e r s t ake s p l ace on a c a sh ba s i s .


Contrac t Manufac tur ing : Manufac tu r i ng o f p roduc t s by t h i rd pa r t y

vendo r s i s qu i t e common . In o rde r t o keep a check on cos t s and

hence i nc r ea se a f fo rdab i l i t y o f t he i r p roduc t s , compan i e s i n many

ca se s p r e f e r t o go fo r con t r ac t manufac tu r i ng by t h i rd pa r t y .

Market ing Dr ive : Marke t i ng a s sumes a s i gn i f i c an t p l ace i n t he

b r and bu i l d ing p roce s s o f t he i ndus t ry p l aye r s . Th i s he lp s i n

r e ach ing ou t t o a l a rge consumer ba se and f i gh t w i th t he ex i s t i ng

b r ands . Even fo r an ex i s t i ng b r and i t r equ i r e s cons t an t ma rke t i ng

e f fo r t s t o keep t he demand a l i ve and k i ck ing .

Market Research: Befo re t he l aunch o f any new p roduc t ,

conduc t i ng marke t r e sea r ch t o gauge t he consumer s ' r e ac t i on i s ve ry

impor t an t . Th i s i s because consumer s ' pu rchase dec i s i ons a r e ba sed

on pe rcep t i ons abou t b r ands and wh ich keep on chang ing w i th

f a sh ion , i ncome and changes i n l i f e s t y l e . A l so i n c a se o f consumer

goods i t i s d i f f i cu l t t o d i f f e r en t i a t e p roduc t s on t e chn i ca l o r

f unc t i ona l g rounds , un l i ke i n t he c a se o f i ndus t r i a l p roduc t s . Now

wi th i nc r ea s ing compe t i t i on , t he r e i s t r emendous p r e s su re on t he

compan i e s t o do ex t ens ive marke t r e sea r ch , t e s t ma rke t i t b e fo re

coming ou t w i th any new p roduc t .

Presence o f a l arge unorgan ized marke t : The FMCG sec to r i s

cha rac t e r i z ed by a huge uno rgan i zed marke t . Fac to r s l i ke l ow en t ry

ba r r i e r s i n t e rms o f l ow cap i t a l i nves tmen t , f i s ca l i ncen t i ve s f rom

gove rnmen t , l ow b rand awarenes s , e spec i a l l y i n ru r a l a r ea s l ed t o

t he mush rooming o f t he uno rgan i zed s ec to r .


CH 3.1 FMCG ‘SECTOR” IN INDIA

The FMCG segmen t i s one o f t he f a s t g rowing s ec to r s i n Ind i a . The

p r e sence o f s eve ra l mu l t i na t i ona l compan i e s ha s added t he g rowth

p rospec t s cons ide rab ly . Es t ima t e s show tha t t he t u rn ove r o f t he FMCG

sec to r w i l l be more t han Rs 1 l akh c ro r e . I t i s t he t h i rd l a rge s t I ndus t ry .

Th i s i ndus t ry e s sen t i a l l y c a t e r s t o t he eve ry day need o f popu l a t i on .

The pa r t i c i pan t p ro f i l e o f t he FMCG sec to r i s ex t ens ive and i t

i nc ludes food and r e l a t ed p roduc t s such a s t e a , s a l t , t obacco , o i l s , f a t s and

p roce s sed foods , pe r sonne l c a r e p roduc t s and cosme t i c i t ems e t c . I t

p rov ide s l a rge emp loymen t bo th d i r ec t l y and i nd i r ec t l y .

The consumer produc t s ec tor ma in ly cons i s t s o f per sona l care ,

co smet i c s and home produc t s s egments . The s ec tor can be fur ther sub-

d iv ided in to denta l care produc t s , soaps , de tergent s , sur face c l ean ing

produc t s , sk in care , and ha i r care produc t s .

Market Segments, Size and Penetration

The s ec to r i s d iv ided i n to two d i s t i nc t s egmen t s t he p r emium

segmen t c a t e r i ng mos t l y t o u rban h ighe r /uppe r m idd l e c l a s s and t he

popu l a r s egmen t w i th p r i c e s a s l ow a s 25% 30% o f t he p r emium segmen t ,


Segments Market size Penetration

(Rs bn) Urban Rural

Toilet soaps 46.0 95.0% 85.0%

Detergents 38.0 95.0% 85.0%

Hair color 2.4 20.0% 10.0%

Skin care 7 40.0% 10.0%

Oral care 21 75.0% 20.0%

c a t e r i ng t o mass s egmen t s i n u rban and ru r a l ma rke t s . The p r emium

segmen t i s l e s s p r i c e s ens i t i ve and more b r and consc ious .

Ind i a ' s r u r a l ma rke t s have s een a l o t o f a c t i v i t y i n t he l a s t f ew yea r s .

S ince u rban marke t s a r e s a tu r a t ed i n mos t c a t ego r i e s , f u tu r e g rowth can

come on ly f rom deepe r ru r a l pene t r a t i on . FMCG ma jo r s a r e agg re s s ive ly

l ook ing a t r u r a l I nd i a s i nce i t a ccoun t s f o r 70% o f t he t o t a l I nd i an

househo lds .

Raw ma te r i a l p r i c e s p l ay an impor t an t r o l e i n de t e rmin ing t he

p r i c i ng o f t he f i na l p roduc t .

The i ndus t ry i s vo lume d r i ven and i s cha rac t e r i z ed by l ow marg in s .

The p roduc t s a r e b r anded and backed by marke t i ng , heavy

adve r t i s i ng , s l i ck packag ing and s t rong d i s t r i bu t i on ne tworks .

Desp i t e t he s t r ong p r e sence o f MNC p l aye r s , t he uno rgan i s ed s ec to r

ha s a s i gn i f i c an t p r e sence i n t h i s i ndus t ry .

Branded goods compr i s e o f 65% o f s a l e s i n v i l l age s and t he sha re o f

non b r anded p roduc t s i s sh r i nk ing d r ama t i c a l l y .


CH 3.2 FMCG MARKETERS INDIAN CHALLENGES

The number s a r e ve ry t emp t ing fo r an FMCG marke t e r . On t op

o f t h i s you l aye r t he one b i l l i on popu l a t i on , ove r 175 mi l l i on househo lds ,

you can imag ine t he eno rmous oppo r tun i t y . Howeve r a l l i s no t e a sy i n t he

Ind i an FMCG marke t i ng s cene .

The complex coun t ry t h rows s eve ra l cha l l enges wh ich have been

t r i ed t o c a t ego r i ze i n to 10 t ypes , f o r e a se o f unde r s t and ing .

Chal l enge No 1 : How do you de f ine the marke t?

Seve ra l l a rge marke t s i n Ind i a a r e a s ye t h igh ly unde rdeve loped .

On ly 60% Ind i ans u se t oo thpas t e . On ly 5% o f househo lds u se a f l oo r

c l e ane r . Of t en i t i s nece s sa ry t o go beyond “ sha re o f ma rke t ’ t o “ sha re o f

so lu t i on” . F rom tha t pe r spec t i ve we migh t d i s cove r ove r 30% o f homes

u se a no rma l househo ld de t e rgen t f o r f l oo r c l e an ing !

Chal l enge No . 2 : How to targe t the marke t?

The 200 mi l l i on midd l e c l a s s i s a my th . How to i den t i fy t he s egmen t

t o t a rge t ? Of t en t he l uc r a t i ve s egmen t s a r e ve ry sma l l . And t he l a rge

s egmen t s do no t have t he deep pocke t s t o buy a be t t e r FMCG p roduc t .

Chal l enge No . 3 : How to unders tand the consumer?

Ind i a shou ld be s een no t a s one coun t ry bu t a s a sub -con t i nen t , w i t h

many sma l l coun t r i e s . So consumer behav iou r may va ry f rom no r th t o

sou th , b ig t own to v i l l age . The conven t i ona l r e sea r ch me thods need t o be

l aye red w i th a sha rp ‘ f e e l ’ f o r t he ma rke t .


Chal l enge No . 4 : How to ta i l or the produc t?

Kel logg cou ld no t c r ea t e a b r eak fa s t hab i t . Bu t a s a snack i t i s

f i nd ing f avou r . T rop i cana had t o educa t e consumer s abou t i t s d i f f e r en t

t a s t e a s ‘ t he t a s t e o f good hea l t h ’ . B rands l i ke N i rma t ha t o f f e r a un ique

p ropos i t i on ba sed on va lue w i l l con t i nue t o f l ou r i sh . FMCG marke t e r s

who can t a i l o r t he i r p roduc t t o unea r t h a key consumer need w i l l r e ap r i ch

r e tu rn s , a sk Ch ik , U ja l a , Moov!

Chal l enge No . 5 : How to make the packag ing work?

Ind i an consumer s be l i eve i n r eus ing and r ecyc l i ng . So a t h rowaway

pack i s s een a s a was t e . No wonde r r e f i l l packs , pouch packs a r e bough t

a c ro s s a l l t he i ncome c l a s se s . Fu r the r , s i ng l e u se packs have he lped

i ncome the pene t r a t i on o f t e a , shampoos and t he ub iqu i t ous pan masa l a s .

Chal l enge No . 6 : How to pr i ce i t r i gh t?

Value p r i c i ng . Pene t r a t i on p r i c i ng . Sk imming p r i c i ng . The re a r e

many app roaches t o t he p r i c i ng game bu t I nd i an consumer s need t o s ee

va lue . Ha l l s s a l e s d ropped o f f t he cha r t s when p r i c e pe r l ozenge moved

f rom 50p t o 75p . The demand fo r t he p roduc t c a t ego ry j u s t d i s appea red .

On jus l o s t t he t r u s t o f dea l e r s and consumer s w i th i t s r epea t ed p r i c e

h ike r . A we l l t hough t ou t p r i c i ng s t r a t egy i s c r i t i c a l , no t j u s t a p r i c i ng

s t r a t egy fo r en t ry .


Chal l enge No . 7 : How to reach the produc t to the consumer?

Trade can make o r b r eak an FMCG b rand . You pampe r t hem, you

become the i r s l ave . You mi s t r ea t t hem and t hey shun you . The p r e sence o f

t he who le sa l e t r ade i s ye t ano the r complex i t y . Marke t e r s have t o dec ide

on how to u se t he se va r i ous channe l s t o r e ach t he consumer s e f f ec t i ve ly .

He re aga in i t i s nece s sa ry t o de f i ne t he ro l e s o f t he va r i ous channe l s , and

de f i ne you r own ru l e s .

Chal l enge No . 8 : How to communica te?

What do Ind i ans l ove? How to cap tu r e t ha t i n t he commun ica t i on?

The t a sk o f commun ica t i on i n FMCG marke t i ng i s t o make t he consumer

r emember t he b r and , l i ke t he b r and and t r y t he b r and . I f t ha t c a l l s f o r a

song l i ke t he ‘Doodh Doodh’ j i ng l e so be i t . Le t t he adve r t i s i ng pa s s t he

age o ld RUB t ex t , r e l evan t , un ique , be l i evab l e . I n add i t i on l e t i t a l so pa s s

t he Ind i an l i keab l i l i t y t ex t - w i l l you s ee t he ad w i th you r daugh t e r and

you r mo the r?

Chal l enge No .9 : How to t rack the brand?

Using marke t r e sea r ch i n t e l l i gen t l y , no t j u s t b l i nd ly . The i dea l way

t o measu re t he succe s s o f t he ma rke t i ng mix i s t o do a r e a l ma rke t

p r e s su re t ex t . H indus t an Leve r t e s t ed C lose -up i n Tami l Nadu ( a med i a

i so l a t ab l e s t a t e ) be fo re t ak ing on Co lga t e on t he na t i ona l p l ay ing f i e l d .

The r e s t i s h i s t o ry .


Chal l enge No . 10 : How to use promot ions be t t er?

I s t he p romot ion b r and l ed o r d i s coun t l ed? R in gave away open soap

d i she s , i t h e lped t he p roduc t u sage s i nce i t d r i ed be t t e r on an open d i sh .

Nesca fe gave away shake r s t o popu l a r i z e t he co f f ee mi lk shake . I nd i an

FMCG marke t t oday ha s become a s a l e s p romot ion me la . The re a r e 2 fo r 1

o f f e r s , banded packs , 50% ex t r a o f f e r s , 3 fo r 2 o f f e r s… a l l cha s ing t he

d i s coun t buy ing t endency o f I nd i an consumer s . Th i s phase w i l l soon pa s s ,

one hopes ! Sa l e s P romot ions need t o he lp i n bu i l d ing t he b r and va lue s , i n

add i t i on t o gene ra t i ng sho r t - t e rm r e su l t s .

The above 10 cha l l enges a r e p robab ly t r ue o f any marke t . Bu t I nd i an

FMCG marke t e r s f a ce t he se cha l l enges i n d i f f e r en t deg ree s i n d i f f e r en t

pa r t s o f t he coun t ry . Be ing aware o f t he cha l l enges w i l l he lp t hem focus

t he i r e f fo r t s be t t e r .

.


CH 3.3 HISTORY OF FAST MOVING CONSUMER GOODS

Fast moving consumer goods companies need to rationalise costs, invest in

brand building and offer more value-added products. That is the recipe for success in the

competitive domestic FMCG industry. By Neural Jha

For t hose who migh t no t know th i s . . . . I t was Dabur , wh i ch k i ck - s t a r t ed

i n Ind i a wha t ' s t oday known a s t he f a s t mov ing consumer goods (FMCG)

i ndus t ry . I t was some 115 yea r s ago , much be fo re H indus t an Leve r (HLL)

ma te r i a l i z ed on t he s cene . Tha t Dabur cou ld ach i eve ne i t he r t he r e ach no r

t he p roduc t dep th o f HLL i s a d i f f e r en t s t o ry a l t oge the r . Sma l l wonde r ,

ou r cu r i o s i t y r e fu se s t o go beyond HLL. How has t he FMCG indus t ry

me t amorphosed i n Ind i a ?

THE FIFTIES AND BEYONDThough mu l t i na t i ona l compan i e s (MNC' ) we re a l l owed t o ope ra t e i n

Ind i a , on ly HLL had manufac tu r i ng ba se a t t he t ime o f I nd i a ' s

i ndependence . Fo r o the r g loba l MNC' s , t he domes t i c ma rke t was t oo sma l l

t o bo the r abou t . Colga te and Nes t l e we re t he r e , bu t t hey we re ma in ly i n to

t r ad ing . Though t he 60 ’ s s aw many MNC’s s e t t i ng up t he i r manufac tu r i ng

ba se i n t he coun t ry , i t was no t a c l e a r go fo r FMCG ma jo r s .

Cut to 1978 .

Tha t was when t he new gove rnmen t e a rmarked s eve ra l p roduc t

c a t ego r i e s f o r t he sma l l - s ca l e s ec to r . The MNC’s t hen we re a sked t o

choose be tween s l a sh ing t he i r equ i t y s t ake t o 40 pe r c en t , o r f o rge t I nd i a .

IBM and Coca -Co la op t ed fo r t he l a t t e r and qu i t I nd i a . On ly Un i l eve r

s t ayed pu t w i th HLL a round . Un i l eve r managed t o r e t a i n a 51 pe r c en t

f o r e ign s t ake by comply ing w i th t he gove rnmen t cond i t i ons o f m in imum

10 pe r c en t expo r t and 60 pe r c en t t u rnove r f rom p r io r i t y s ec to r s . I t go t


i n t o t he bus ine s s o f f e r t i l i s e r and chemica l s t o mee t t he cond i t i ons fo r

s t ay ing on i n Ind i a . HLL s t ayed on .

Lops ided growth

HLL migh t have s t ayed on , bu t t he FMCG sec to r i n Ind i a ha s had a

s l ow and l ops ided g rowth . Af t e r so many yea r s , qu i t e a f ew p roduc t

s egmen t s i n t he i ndus t ry s t i l l r ema in un rep re sen t a t i ve , and mos t s egmen t s

unde r - r ep re sen t ed . Ba r r i ng pe r sona l c a r e and hyg i ene , no o the r p roduc t

s egmen t ha s had an exp los ion o f p l aye r s . I n food p roduc t s , f o r i n s t ance ,

t he r e a r e on ly t h r ee ma jo r p l aye r s - P i l l sbu ry , Annapu rna and Cap t a in

Cook . D i t t o fo r vege t ab l e o i l whe re aga in t he r e a r e ve ry f ew p l aye r s .

What i s the reason? One foremos t r eason has been tha t the FMCG

sec tor never go t the cen tra l i ty i t de served . Why , the FMCG sec tor has

been a v i c t im o f a de f in i t i ona l d i l emma in Ind ia .

Says Michae l Fe rnandes , s en io r engagemen t manage r ,

McKinsey & Company " In Ind i a , we neve r had a s t r ong

de f i n i t i on o f t he FMCG sec to r ."

Al l t he se yea r s , t he FMCG sec to r i n Ind i a ha s been l ooked upon a s an

MNC-domina t ed and h igh -p r i c e s ec to r , wh i ch so ld on ly l uxu ry goods t o

t he r i ch . Even t he gove rnmen t s eemed t o sha re t h i s v i ew , a s i t s

r egu l a t i ons r e f l e c t ed .

Resu l t : Mos t MNC' s l ooked e l s ewhe re . Says Fe rnandes : "When t he MNC’s

p r i o r i t i z ed Ind i a oppo r tun i t i e s ve r sus t ha t o f t he wor ld ou t s i de , t hey

found t ha t do ing bus ine s s he r e was d i f f i cu l t . I t d i d no t make s ense fo r

t hem to make huge i nves tmen t s i n Ind i a . " The re we re o the r r e a sons a s

we l l , wh i ch made Ind i a an " ex t r a t ough" marke t i n t he eye s o f t he MNC’s .


The need fo r l oca l i z a t i on was much he re . I t s t i l l i s . The marke t t oo was

no t open enough t o a l l ow f r ee en t ry and ex i t .

THE DRAMATIC NINETIES

Things howeve r began t o change pos t - r e fo rms du r ing t he n ine t i e s .

The f l oodga t e s we re opened . And MNC’s w i th s a tu r a t i ng home-marke t s

who we re hung r i l y l ook ing fo r ma rke t s e l s ewhe re ru shed i n . Ca t ego r i e s

w i th in c a t ego r i e s we re c r ea t ed i n p roduc t s such a s ha i r -o i l and sk inca re ,

and many new p roduc t c a t ego r i e s we re a l so c r ea t ed . Un touched f ace t s o f

t he Ind i an consumer we re exp lo red .

The FMCG p l aye r s had i n f ron t o f t hem no t on ly a va s t un t apped

marke t bu t a l so a ma rke t t ha t was f a s t g rowing . I ncome- l eve l s we re r i s i ng .

A new c l a s s o f upward ly mob i l e was emerg ing . Te l ev i s i on and , s a t e l l i t e

and cab l e t e l ev i s i on we re he lp ing t he ma rke t t o g row fu r t he r i n ru r a l a r ea s

by chang ing a sp i r a t i ons and l i f e s t y l e s .

The canvas d id w iden fo r t he FMCG p l aye r s , bu t so d id t he

cha l l enges . Ru l e s o f t he game changed . S t r a t eg i e s , i n t he i r t r ue s ense ,

c ame t o t he fo r e . Qu i t e un l i ke i n t he pa s t , compan i e s began l ook ing fo r

ways t o expand t he i r p roduc t -po r t fo l i o s and d i s t r i bu t i on r each .

Acqu i s i t i on o f b r ands became t he o rde r o f t he day a s i t gave t he p l aye r s

e a sy op t i ons o f a t t a i n ing g rowth i n t he FMCG sec to r . Tha t i s t r ue o f t he

MNC’s who a r e known fo r t he i r deep pocke t s .

HLL, for instance unleashed brands in a way it had never done before. Just in a span of four years (1992-1996), it gobbled up Tomco, Kwality and Kissan. Lakme was bought off lock, stock and barrel in 1995. HLL's game plan was to leverage Lakme's distribution channel. But, problems remained. HLL's traditional distribution network, although one of the largest was not tuned to market cosmetic products.


R iva l s we re no t s i t t i ng i d l e e i t he r . The Ind i an a rm o f Co lga t e -

Pa lmo l ive bough t o f f t he en t i r e o r a l hyg i ene bus ine s s o f H indus t an C iba

Ge igy fo r Rs 1 .31 b i l l i on , t ak ing ove r C ibaca Top and C ibaca F lou r ide

t oo thpas t e b r ands , and Sup reme , S t anda rd Angu la r and De luxe T ranspa ren t

t oo thb rush b r ands . Th i s pu rchase cons ide ra t i on was much more t han tw ice

t he t u rnove r o f t he se b r ands acqu i r ed .

The idea was s imple :

One , t he a cqu i r e r p r e - emp ted r i va l s f rom acqu i r i ng t he b r ands and

he lped t o conso l i da t e i t s pos i t i on . And Two , i t i nc r ea sed marke t sha r e .

Fo r Co lga t e i t s ma rke t sha r e more t han doub l ed f rom 33 t o 68 pe r c en t . I t

was i nc r ea s ing ly becoming a ma rke t sha r e game . Sma l l ga in s made i n

ma rke t sha r e s we re s i gn i f i c an t i n a ma rke t cha rac t e r i z ed by i n t ens i fy ing

compe t i t i on and po l a r i z a t i on . F ina l l y , i t s t r eng thened t he d i s t r i bu t i on

ne twork .


CH 3.4 MAJOR PLAYERS IN THE FMCG SECTOR IN INDIA

1. Colgate Palmolive (India) Limited \\

Colga t e Pa lmo l ive Ind i a L td i s a 51% subs id i a ry o f

Co lga t e Pa lmo l ive Company , USA. I t i s t he ma rke t

l e ade r i n t he Ind i an o r a l c a r e ma rke t , w i t h a 51% marke t sha r e i n t he

t oo thpas t e s egmen t , 48% marke t sha r e i n t he t oo thpowde r ma rke t and a

30% sha re i n t he t oo thb rush marke t . The company a l so ha s a p r e sence i n

t he p r emium to i l e t soap s egmen t and i n shav ing p roduc t s , wh i ch a r e so ld

unde r t he Pa lmo l ive b r and . O the r we l l -known consumer b r ands i nc lude

Cha rmi s sk in c r eam and Ax ion d i sh wash .

Co lga t e ha s f a ced i n t ense compe t i t i on du r ing t he l a s t 5 yea r s

i n i t i a l l y f rom no . 2 p l aye r HUL & more r ecen t l y f rom sma l l l oca l p l aye r s

(Meswak , Baboo l , Ancho r ) &o the r MNC' s such a s Smi thk l i ne (Aqua f r e sh ) .

The company ha s been f i gh t i ng back t h rough new l aunches and

r ev i t a l i z a t i on o f f l ag sh ip b r and Co lga t e Den t a l C ream (CDC) . I n FY01 ,

t he company l aunched 2 new b rands Co lga t e He rba l & Co lga t e C ibaca

Top , wh ich have been we l l r e ce ived and have enab l ed t he company t o ga in

ma rke t sha r e . Bo th t he se b r ands have con t r i bu t ed t o combined marke t

sha r e o f 7%, a l t hough a pa r t o f t he ga in s have come t h rough

cann iba l i z a t i on o f f l ag sh ip b r and CDC.

The company ha s r e - l aunched i t s Ge l t oo thpas t e Co lga t e F re sh Ene rgy

Ge l w i th an agg re s s ive `Ta lk t o Me ' c ampa ign w i th a v i ew to r ev ive

g rowth i n t he s t agnan t s egmen t . Co lga t e ha s no t been ab l e t o a ch i eve any

s i gn i f i c an t succe s s i n expand ing i t s non - o ra l c a r e po r t fo l i o . The

Pa lmo l ive soap b r and was r e - l aunched l a s t yea r i n new t r anspa ren t sk in


c a r e va r i an t s w i th i nnova t i ve s ee t h rough packag ing . Marke t sha r e s i n

o the r c a t ego r i e s such a s shav ing p roduc t s , sk in c r eams and shampoo ha s

r ema ined neg l i g ib l e . The company a l so l aunched a new shave ge l

concen t r a t e f ocus s ing on sk in mo i s tu r i z e r s i n i t .

2. Dabur India Limited

Dabur Ind i a i s i n to t he bus ine s s o f manufac tu r i ng & se l l i ng

o f ayu rved i c med i c ine s , ayu rved i c , na tu r a l and he rba l

pe r sona l & hea l t h p roduc t s & p roce s sed foods e i t he r d i r e c t l y

o r i nd i r ec t l y t h rough i t s subs id i a r i e s . The company i s among

t op FMCG compan i e s i n t he coun t ry . I t i s p r e sen t i n t he Ind i an marke t f o r

pa s t 115 yea r s . Mos t o f i t s ayu rved i c /OTC b rands a r e t he ma rke t l e ade r s

i n t he i r r e spec t i ve s egmen t s . Dabu r ha s deve loped cons ide rab l e expe r t i s e

i n t he se t r ad i t i ona l a r ea s & has we l l unde r s tood t he consumer p r e f e r ences

fo r t he t r ad i t i ona l ayu rved i c r emed ia l measu re s . I t was named a f t e r i t s

f ounde r Dr . S V Burman . I t a l so ha s i t s own adve r t i s i ng agency , Adbur . I t

now se l l s i t s p roduc t s i n more t han 50 coun t r i e s .

The company ha s a l so e s t ab l i shed a s t r ong b r and equ i t y i n pe r sona l

p roduc t s l i ke ha i r o i l , s hampoo , e t c . The company ha s d ive r s i f i ed i n to t he

foods bus ine s s , d i r e c t l y and t h rough j o in t ven tu re s . Dabu r ' s key g rowth

d r i v ing b r ands a r e Chyawanprash , Pud inHara , Ha jmo la , Dabur Amla ,

Dabur Va t i ka and La l Dan t Man jan .

The company h i t he r t o had been a f ami ly run bus ine s s bu t w i th

i nc r ea s ing compe t i t i on t he company ha s unde r t aken mass ive r e s t ruc tu r i ng

ove r pa s t 2 yea r s and ha s ex i t ed fo rm a number o f l ow marg in bus ine s se s .


3. Godrej Consumer Products Limited

Godre j Consumer P roduc t s L td (GCPL) was fo rmed on

Apr i l 1 , 2001 w i th t he de -merge r o f t he consumer bus ine s s o f t he

e r s twh i l e Godre j Soaps L td . GCPL has emerged a s a f ocused FMCG

company . I t s ma in p roduc t l i ne s now cons i s t o f t o i l e t soaps , l i qu id

de t e rgen t , co sme t i c s such a s ha i r c a r e , f a i rne s s c r eams , e t c and men ' s

t o i l e t r i e s . The company a l so unde r t ake s con t r ac t manufac tu r i ng o f t o i l e t

soap fo r t h i rd pa r t i e s . A l l i n t e r e s t s o f t he e r s twh i l e Godre j Soaps i n o the r

bus ine s se s such a s i ndus t r i a l chemica l s , med i ca l d i agnos t i c s and f i nanc i a l

i nves tmen t s con t i nued t o r ema in i n t he ex i s t i ng en t i t y , pos t de -merge r and

t he company ha s been r enamed Godre j I ndus t r i e s L td (GIL) Pos t de -

merge r , t he equ i t y c ap i t a l o f Godre j Consumer s t ands a t Rs . 239 .3 mi l l i on ,

wh i l e t ha t o f Godre j I ndus t r i e s i s Rs . 358 .5 mi l l i on .

4. Himalaya Herbal Healthcare


I t i s a Banga lo re ba sed company , w i th bus ine s s i n to

pha rmaceu t i c a l s and FMCG p roduc t s . I t was fo rmer ly

known a s The H ima lya Drug Company .

Today , i t s p roduc t s , made f rom na tu r a l he rbs a f t e r ex t ens ive r e sea r ch ,

have found accep t ance w i th med i ca l f r a t e rn i t i e s and s e rve t he hea l t h and

pe r sona l c a r e needs o f consumer s i n ove r 40 coun t r i e s . The p roduce r o f

l e ad ing househo ld b r ands such a s L iv 52 and Ayurved i c Concep t s ha s

r e cen t l y dec ided t o un i fy a l l i t s o f f e r i ngs unde r t he s i ng l e , g loba l b r and

`H ima laya . '

The company i s p l ann ing t o make 5 o f i t s b r ands `Power Brands ' f o r t he

company . The f i ve b r ands a r e H ima laya acne p imp le c r eam, H ima laya

dand ru f f shampoo , H ima laya foo t c a r e c r eam, H ima laya ha i r o i l and

H ima laya den t a l c r eam.

7. Hindustan Unilever

Hindus t an Un i l eve r , 51 .6% subs id i a ry o f Un i l eve r P l c , i s t he l a rge s t

FMCG Company i n t he coun t ry , w i th a t u rnove r o f Rs . 190 b i l l i on . The

company ' s bus ine s s sp r awl s f rom pe r sona l and househo ld ca r e p roduc t s t o

foods , beve rages , spec i a l t y chemica l s and an ima l f e eds . The company ha s

a domina t i ng marke t sha r e i n mos t c a t ego r i e s t ha t i t ope ra t e s i n such a s

t o i l e t soaps , de t e rgen t s , sk inca re , ha i r c a r e , co lo r cosme t i c s , e t c . I t i s a l so

t he l e ad ing p l aye r i n food p roduc t s such a s b r anded packaged t e a , co f f ee ,

i c e c r eam and o the r cu l i na ry p roduc t s .


HUL g rew a t a f a s t pace i n t he mid 90 ' s d r i ven by i t s agg re s s ive

acqu i s i t i on sp ree . F rom a Rs . 38 b i l l i on t u rnove r ( con t r i bu t ed 70% by

soaps , de t e rgen t s and pe r sona l p roduc t s ) , HUL ' s t u rnove r ha s now g rown

to Rs . 114 b i l l i on , w i th pe r sona l p roduc t s con t r i bu t i ng 53% to t u rnove r &

beve rages & food p roduc t s con t r i bu t i ng t o 30% o f t u rnove r . Whi l e g rowth

du r ing t he l a s t f i ve yea r s was be ing d r i ven by f a s t g rowing pe r sona l

p roduc t s bus ine s s , t he pace ha s s l a ckened s i gn i f i c an t l y s i nce 2000 .

Compet i t i ve pos i t i on : HUL i s t he ma rke t l e ade r i n t he de t e rgen t & soap

i ndus t ry . N i rma i s a c l o se compe t i t o r i n de t e rgen t s & has been s l owly

ga in ing g round i n t o i l e t soaps t oo . The o the r s i gn i f i c an t compe t i t o r i n

de t e rgen t s i s P&G. In o r a l c a r e s egmen t , HUL has emerged a s a s t r ong No

2 p l aye r , g iv ing s t i f f compe t i t i on t o t he ma rke t l e ade r Co lga t e . I n t he ha i r

c a r e s egmen t , HUL domina t e s t he shampoo marke t & i s t he No 2 p l aye r i n

ha i r o i l s . I n t he sk in ca r e ma rke t , HUL has a l so been l o s ing sha re t o sou th

ba sed p l aye r Cav inca re L td . I n t he foods bus ine s s , Ta t a Tea i n packe t t e a ,

Nes t l e i n co f f ee and cu l i na ry p roduc t s , GCMMF (Amul ) i n i c e c r eams , and

Godre j P i l l sbu ry i n s t ap l e food a r e t he ma in compe t i t o r s .

P ro f i t ab l e g rowth i s t he new man t r a o f t he FMCG ma jo r ' s new

Cha i rman V ind i Banga . , who t ook ove r t he r e i n s f rom Kek i Dad i se th l a s t

yea r . I n con t r a s t t o Dad i se th ' s s t r a t egy o f expans ion t h rough acqu i s i t i on ,

Mr Banga ' s s t r a t egy r evo lve s a round r a t i on l i z a t i on .

A focus on 30 power b r ands , wh ich a r e ma jo r con t r i bu to r s t o

p ro f i t ab i l i t y , s e ek ing new avenues o f expand ing d i s t r i bu t i on r each ,

improv ing p ro f i t ab i l i t y o f Foods bus ine s se s , wh i ch i s i n t he i nves tmen t

phase a r e t he t h ru s t a r ea s ou t l i ned by h im . The non FMCG bus ine s se s a r e

e i t he r be ing a r e h ived o f f o r a r e be ing s t r eng thened by pa r t ne r sh ip s w i th

p l aye r s who have t he t e chno log i ca l expe r t i s e i n t hose bus ine s se s .


8. Marico Industries Ltd (Marico)

Mar i co i s t he ma rke t l e ade r i n t he ha i r o i l s egmen t , w i th i t s

Pa r achu t e and Ha i r & Ca re b r ands . I n t he yea r 2009 i t

gene ra t ed a t u rnove r o f abou t 26 .6 b i l l i ons . I t ha s a l so bu i l t

up a s t r ong equ i t y i n t he b r anded ed ib l e o i l s egmen t , n i che f ab r i c c a r e

p roduc t s and food p roduc t s l i ke j ams and s auces . P r e sen t l y t he company

ha s 8 b r ands and a number o f b r and ex t ens ions i n i t s po r t fo l i o and ha s i t s

bus ine s s r ang ing ac ros s a r ea s o f Ed ib l e o i l , Ha i r c a r e , p roce s sed foods

and n i che f ab r i c c a r e s egmen t s .

Bes ide s Mar i co , Dabur and HUL a re t he two l e ad ing p l aye r s a t t he

na t i ona l l eve l . The re a r e s eve ra l o the r p l aye r s w i th a r eg iona l f ocus .

B randed ed ib l e o i l , t oday accoun t s f o r j u s t 35% o f t o t a l ed ib l e o i l

consumpt ion . Howeve r t he r e l a t i ve p ropo r t i on o f ed ib l e o i l so ld i n

packaged /b randed fo rm has been r i s i ng s t e ad i l y w i th i nc r ea s ing awarenes s

abou t hea l t h & hyg i ene . I n t he f ab r i c c a r e s egmen t , Mar i co i s t he p ionee r

& the on ly p l aye r c a t e r i ng t o n i che Ind i an r equ i r emen t s such a s s t a r ch ing .

Pa rachu t e and Sa f fo l a , a ccoun t i ng fo r more t han 60% o f Mar i co ' s

t u rnove r , have been t r ans f e r r ed f rom Bombay O i l t o t he l i s t ed company

fo r a cons ide ra t i on o f Rs . 300 mi l l i on i n FY00 . Mar i co i s f o l l owing t he

s t r a t egy o f s t r eng then ing t he b r and equ i t y o f ex i s t i ng b r ands by l aunch o f

new va r i an t s , expand ing p roduc t po r t fo l i o t h rough acqu i s i t i ons and

l eve rag ing upon i t s l a rge ne twork by en t e r i ng i n to d i s t r i bu t i on

a r r angemen t s . Howeve r an agg re s s ive ons l augh t o f compe t i t i on f rom HLL

in t he ha i r o i l s egmen t c an a f f ec t Mar i co adve r se ly .

9. Nirma


N i rma manufac tu r e s de t e rgen t s , t o i l e t soaps and o the r

i ndus t r i a l chemica l s . I t ha s backward i n t eg ra t ed by s e t t i ng up a 75000

TPA LAB p l an t , a 65000 TPA N Para f f i n p l an t and a 0 .42mn TPA soda a sh

p l an t . The f i r s t FMCG Company t o have fo r ayed i n to such l a rge capex

backward i n t eg ra t i on p ro j ec t s , N i rma ' s s t r a t egy i s t o emerge a s one o f t he

l owes t co s t de t e rgen t manufac tu r e r i n t he wor ld . The company ha s a l so

s t r eng thened i t s pos i t i on i n t he t o i l e t soap ca t ego ry and ach i eved

phenomena l succe s s i n t he l a s t one yea r t h rough l aunch o f a new b rand

N ima .

In de t e rgen t s ma rke t N i rma and H indus t an Un iLeve r a r e c l o se

compe t i t o r s w i th 38% marke t sha r e e ach . N i rma l e ads t he popu l a r

s egmen t , wh i l e HLL l eads t he p r emium de t e rgen t powde r s egmen t . P&G

and Henke l Sp i c a r e t he o the r key compe t i t o r s i n t he de t e rgen t ma rke t . I n

t o i l e t soaps , HLL has a domina t i ng 63% marke t sha r e . N i rma ha s a l so

ga rne red a s i gn i f i c an t 22% marke t sha r e i n a sho r t t ime .

O the r ma jo r p l aye r s i n t he s egmen t a r e Godre j Soaps and P&G.

N i rma i s r e ap ing t he bene f i t s o f t he l a rge i nves tmen t s made i n t he l a s t 4

yea r s . Ope ra t i ng marg in r e co rded an improvemen t i n FY00 and ha s fu r t he r

r i s en by 450 ba s i s po in t s f rom 18% to 22 .5% du r ing t he f i r s t qua r t e r o f

FY01 . Sa l e s i n Q1 g rew by 55% yoy t o Rs5 .5bn , d r i ven pa r t l y by t he

me rge r o f g roup company

K i s san Indus t r i e s and con t i nu ing s t rong g rowth i n t o i l e t soap . Even


a f t e r exc lud ing t he impac t o f t he K i s san merge r ( e s t ima t ed annua l

t u rnove r o f Rs2bn ) N i rma ' s s a l e s g rowth wou ld have been a robus t 35%

yoy . The succe s s o f t he N ima b rand ha s con t r i bu t ed s i gn i f i c an t l y t o t h i s

r obus t g rowth .

Stra tegy

Ni rma ' s l a rge capex backward i n t eg ra t i on p ro j ec t s had been

unde r t aken w i th a s t r a t egy t o become the l owes t co s t de t e rgen t

manufac tu r e r i n t he wor ld . Se l f - su f f i c i ency i n key r aw ma te r i a l s w i l l g i ve

p ro t ec t i on aga in s t commod i ty cyc l e s be s ide s y i e ld ing subs t an t i a l s av ings

i n r aw ma te r i a l co s t . The company e s t ima t e s a t o t a l co s t s av ing o f 25% in

ma t e r i a l and hand l i ng cos t s due t o t he backward i n t eg ra t i on p ro j ec t s .

The company makes ex t ens ive u se o f wa l l pa in t i ngs fo r adve r t i s i ng .

10. Procter and Gamble

P&G, 65% subs id i a ry o f P&G USA (P&G) , i s ma in ly engaged

i n t he bus ine s se s o f hea l t h c a r e and f emin ine hyg i ene . The pa ren t ha s

i den t i f i ed an t i co ld p roduc t s (V icks r ange ) and f emin ine s an i t a ry p roduc t s

(Whi spe r ) a s t he focus a r ea fo r i t s l i s t ed Ind i an subs id i a ry . The company

a l so manufac tu r e s de t e rgen t f o r t he pa r en t ' s 100% subs id i a ry , P roc t e r &

Gamble Home P roduc t s (PGHP) . O the r bus ine s se s i nc lude men ' s t o i l e t r i e s

and sk in ca r e p roduc t s .

V i cks i s t he dominan t l e ade r i n t he an t i co ld OTC segmen t . Ma in


compe t i t i on i s f r om domes t i c l oca l b r ands l i ke Amru t an j an , Zandu , e t c i n

rubs and ba lms and f rom MNC b rands such a s Ha l l s , S t r eps i l s i n cough

l ozenges s egmen t . A r ecen t en t r an t Pa ra s P roduc t s ha s been g iv ing s t i f f

compe t i t i on t o V icks Vaporub , by agg re s s ive adve r t i s i ng and compe t i t i ve

p r i c i ng o f i t s p roduc t s .

The pa ren t , P roc to r & Gamble , USA ope ra t e s i n Ind i a t h rough t h r ee

en t i t i e s . 65% subs id i a ry P roc t e r & Gamble Hyg iene & Hea l t hca re (PGHH) ,

wh ich i s f ocused on An t i co ld (V icks ) , and Femin ine Hyg iene (Whi spe r ) .

Th i s subs id i a ry a l so manufac tu r e s de t e rgen t s and Mens To i l e t r i e s p roduc t s

(O ld Sp i ce ) . 100% subs id i a ry P roc t e r & Gamble Home P roduc t s (PGHP)

i s f ocused on t he De t e rgen t (Ar i e l , T ide ) , Ha i r Ca re (Pan t ene , Head &

Shou lde r s ) , Baby ca r e (Pampe r s ) , Snack Food (P r ing l e s ) bus ine s s .

D i s t r i bu t i on o f p roduc t s i s c a r r i ed ou t by ano the r subs id i a ry P roc t e r &

Gamble D i s t r i bu t i on Company , wh ich i s j o in t l y owned by PGHH and

PGHP. The managemen t i s h igh ly opaque and does no t sha r e any o f i t s

g rowth p l ans o r s t r a t eg i c dec i s i ons . The company dec l a r ed a whopp ing

400% d iv idend i n F6 /99 and i n F6 /01 , t he l a rge s t bene f i c i a ry o f wh ich

be s ide s t he sma l l i nves to r s ha s been t he pa r en t company .

A l so ven tu re i n to new p roduc t s egmen t s , whe re P&G has a

t e chno logy edge ( shampoos . de t e rgen t s , t oo thpas t e ) a r e unde r t aken

t h rough t he 100% subs id i a ry PGHP.

CH 4.1 WHY ADVERTISING IS REQUIRED IN FMCG SECTOR


These are the d i f f eren t r easons why a company needs to adver t i s e

the i r communica t ion objec t i ve s

In troduc t ion o f new produc t s : Fo r t he new p roduc t s o r s e rv i ce s ,

r eminde r adve r t i s i ng i s c l e a r l y i napp l i c ab l e . He re t he t a sk i s one o f

ba s i c educa t i on – i n fo rming po t en t i a l cu s tomer s o f t he bene f i t s t hey

w i l l r e ap by pu rchas ing t he new p roduc t .

Example : LIVON SILKY POTION , when i n t roduced , t he ads

d i f f e r en t i a t ed t he p roduc t f rom the shampoos & cond i t i one r s by

exp l a in ing u sage t he p roduc t , pos i t i on ing i t t o be be t t e r t han t he

cond i t i one r s . How ha i r becomes manageab l e & s i l ky a f t e r u s ing i t .

Overcoming Res i s tance /Chang ing At t i tude : Many compan i e s s eem

to a s sume t ha t t he pub l i c i s me re ly wa i t i ng fo r a su i t ab l e adve r t i s i ng

message t o s t imu la t e t hem in to buy ing t he p roduc t . Bu t t he peop l e

a r e wa ry o f buy ing un fami l i a r p roduc t s & the r e t a i l e r s a r e equa l l y

shy o f s t ock ing t he l i ne s unknown to t he i r cu s tomer s .

Example : I n t he c a se o f KAMASUTRA condoms – peop l e we re

aga in s t t he u se & had a nega t i ve impre s s ion o f u s ing condoms . The i r

app roach was t ha t o f be ing h igh r e s i s t ance . Th i s was because t hey

s aw condoms a s a means o f p ro t ec t i on . Hence KAMASUTRA had a

t a sk o f s e l l i ng no t on ly t he p roduc t , bu t a l so t he de s i r e o f ‘The

p l ea su re o f mak ing l ove ’ . Hence i n a l l t he i r adve r t i s emen t s t hey

have b rough t t he f a c to r .

Remind ing cus tomers : A company ha s t o cons t an t l y r emind u se r s o f

t he i r wa re s . The human memory i s ve ry sho r t & f r equen t r eminde r s


a r e nece s sa ry . Moreove r , t he r e a r e i nnumerab l e d i s t r a c t i ng f ac to r s ,

wh i ch soon make memory f ade . The re i s a l so compe t i t i on fo r

a t t en t i on f aced f rom the make r s o f t o t a l l y d i f f e r en t p roduc t s . Tak ing

a s t i l l w ide r v i ew o f t he many s e l l i ng i n f l uences a t work t o make

peop l e fo rge t you r p roduc t – t he l a t e s t news a t home o r ab road , t he

a c t i v i t i e s o f f ami ly and f r i ends , new even t s a t work and t he l a t e s t

f i lms and t e l ev i s i on p rog rammes - a l l make t he consumer s m ind

d ive r t and fo rge t you r p roduc t .

The manufac tu r e r who wan t s h i s p roduc t and name t o be r emembered

amid t he hos t o f compe t i ng p roduc t s and b r and names w i l l go fo r

h igh pub l i c a t t en t i on . Fu r the r more , cons t an t r eminde r s t h rough

adve r t i s emen t s c an enhance t he company’ s r epu t a t i on and s t and ing

and p l ay t he i r pa r t i n c emen t ing cus tomer l oya l t y .

Example SANTOOR cons t an t l y t ouched t he consumer w i th i t s t heme

o f ‘m i s t aken i den t i t y ’ . I t r a i s ed t he a sp i r a t i ons o f a woman o f

l ook ing younge r .

Rein forcement adver t i s ing : Re la t ed t o r eminde r adve r t i s i ng i s

r e i n fo rcemen t adve r t i s i ng , wh ich s eeks t o a s su re cu r r en t pu rchase r s

t ha t t hey have made t he r i gh t cho i ce . Au tomob i l e Ads o f t en dep i c t

s a t i s f i ed cus tomer s en joy ing spec i a l f e a tu r e s o f t he i r new ca r .

Example : HYUNDAI SANTRO had some ads quo t i ng how cus tomer s

we re s a t i s f i ed w i th t he ‘Mob i l e ’ s e rv i ce t ha t he lped t hem in a

d i f f i cu l t s i t ua t i on . Th i s i s a c l a s s i c example o f r e i n fo rcemen t

adve r t i s i n g .


New cus tomers f rom o ther brands : One mus t t r y t o f i nd ou t wh ich

ex i s t i ng u se r s o f t he compe t i ng b r and a r e t he mos t d i s s a t i s f i ed w i th

i t and t a rge t t he se sw i t ch ab l e consumer s . A l t e rna t i ve ly one shou ld

t r y t o a cqu i r e t hose cus tomer s o f t he compe t i ng b r and who a r e t he

mos t l i ke ly t o g row the i r s a l e s vo lume i n t he yea r s t o come . And /o r

a r e t he mos t p ro f i t ab l e . Fo r many p roduc t c a t ego r i e s abou t 20% o f

t he cus tomer s (heavy u se r s ) a r e l i ke ly t o a ccoun t f o r 50% o f t he

s a l e s vo lume and p ro f i t s and a r e c l e a r l y wor th focus ing on a s new

b rand u se r s .

Example : ARIEL v / s SURF : When Ar i e l was l aunched , i t showed

compar i sons be tween i t s e l f and a known de t e rgen t (Su r f packe t

w i thou t i t s name) . Th rough i t s ad s , i t showed how i t was be t t e r t han

Su r f and t hus wan t i ng t o sh i f t t he Su r f u se r s t o Ar i e l .

New cus tomers f rom o ther ca tegor i e s : Ano the r app roach i s t o

a t t r a c t peop l e f rom those no t now us ing t he p roduc t c l a s s . The f i rm

in t he i ndus t ry t ha t ha s t he h ighes t ma rke t sha r e , t he l a rge s t

d i s t r i bu t i on , t he b igges t s a l e s f o r ce and t he h ighes t awa renes s i s t he

one mos t l i ke ly t o ge t t he s a l e f rom a cus tomer j u s t en t e r i ng t he

p roduc t c a t ego ry .

Example : PEPSI m igh t conc lude t ha t i t i s e a s i e r t o ge t young

co f f ee d r i nke r s t o sw i t ch f rom co f f ee t o PEPSI , t han i t i s t o sw i t ch

COKE d r inke r s t o PEPSI

UJALA , when i t en t e r ed t he ma rke t , p roved i t s e l f be t t e r t han Nee l

(b lue ) and made t he u se r s sh i f t t o i t .


On t he o the r hand such a s t r a t egy makes much l e s s s ense fo r a

sma l l e r f i rm tha t r uns t he r i sk t ha t t he s egmen t member who i s

i nduced t o t r y t he p roduc t c l a s s may buy f rom a l a rge r compe t i t o r .

Example : A sma l l c e l l u l a r phone manufac tu r e r m igh t was t e i t s

money i f i t r an ads t e l l i ng peop l e why ce l l u l a r phones i n gene ra l

we re u se fu l f o r pe r sona l o r bus ine s s r e a sons . A consumer s ee ing

t hose ads m igh t dec ide t ha t , ye s t hey need a c e l l u l a r phone , bu t

m igh t t hen end up buy ing t he be t t e r -known MOTOROLA or

NOKIA.

Brand Image / Company Image : The Company needs t o have a

f avou rab l e image o f i t b r and i n t he eye s o f t he cus tomer s . Fo r t h i s

r e a son , t he company unde r t ake s va r i ous c ampa igns t o bu i l d t he

b r and and t he company . Th i s w i l l enhance t he p r e f e r ence o f t he

cus tomer s t o u se t he pa r t i cu l a r b r and i n t he ma rke t o f numerous

b r ands . The re a r e va r i ous f a c to r s t ha t con t r i bu t e t o t he f avou rab l e

b r and image . They a r e :

Unique Se l l i ng Propos i t i on

Example : SAFFOLA prev ious ly adve r t i s ed t he f e a tu r e o f i t s o i l ,

wh i ch s a id t ha t i t s consumpt ion wou ld no t l e ad t o any hea r t

p rob l ems .

Brand Per sona l i t y

Example : MCDONALDS - Fami ly o r i en t ed , Genu ine , who l e some ,

chee r fu l , f un


Per fo rmance

Example : MRF Tyres run huge ads i n p r i n t med i a on t he onse t o f

monsoon , t e l l i ng u se r s t o t r u s t MRF fo r monsoon . A l so , i n a l l i t s ad s

i t t a l k s abou t t he awa rds i t ha s won ove r t he yea r s , a s ‘ t he be s t t y r e s

fo r I nd i an roads ’ .

Creat ing awarenes s o f new produc t s /brands and new

deve lopments in the company:

Pre sen t cus tomer s may know the p roduc t s o f a company , bu t

t hey may no t know the improvemen t s made o r t he new l i ne s added t o

t he i r r ange . F i rms devo t e a g r ea t dea l o f t ime , money and e f fo r t i n

improv ing t he i r p roduc t s , bu t t h i s i s o f l i t t l e pu rpose i f t he

cus tomer s a r e l e f t i n t he da rk abou t t hem. Po t en t i a l cu s tomer s w i l l

no t become pu rchase r s un l e s s t hey know o f t he new deve lopmen t s

and adve r t i s i ng he lp s t o keep t hem in fo rmed . Fu r the rmore , changes

i n you p roduc t l i ne may open up new marke t s egmen t s fo r whom the

ea r l i e r p roduc t s we re no t o f i n t e r e s t .

Example : PERK i n t roduced t he “PERK XL and PERK XXL” a t t he

compe t i t i ve p r i c e . They have u sed ‘Pr i e ty Z in ta ’ i n t he i r

adve r t i s emen t s .

PONDS have a r ange o f p roduc t , wh i ch was i n t roduced

consecu t i ve ly , and i t i s cons t an t l y adve r t i s ed on t e l ev i s i on and o the r

med iums .

Increas ing usage : I t i s pos s ib l e t o i nc r ea se t he u sage o f ex i s t i ng

cus tomer s i n t he p roduc t c l a s s . I n e s sence t he goa l wou ld be t o

i nc r ea se t he amoun t consumed pe r u sage occa s ion .


Example : CLINIC PLUS – r ecommended t h rough i t s adve r t i s emen t ,

t ha t i t s shampoo mus t be u sed 3 t imes i n a week –“Tuesday ,

Thu r sday , Sunday . ”

ZANDU BALM – t he adve r t i s emen t dep i c t ed t he va r i ous pa in s t ha t

cou ld be r e l i ved t h rough Zandu Ba lm , w i thou t even v i s i t i ng t he

doc to r .

CADBURY’S DAIRY MILK – wh i ch showed t he mar r i age s cena r io

and how peop l e consumed Da i ry Mi lk i n s t e ad o f t he u sua l Mi tha i s .

Umbre l l a campa igns : Many o rgan i za t i ons a r e found ac t i ve i n many

ac t i v i t i e s and have mu l t i p l e b r ands fo r d i f f e r en t c a t ego r i e s , w i th

s epa ra t e d iv i s i ons ma rke t i ng s epa ra t e p roduc t s t o s epa ra t e ma rke t s

v i a s epa ra t e adve r t i s i ng and s e l l i ng campa igns . Many such

o rgan i za t i ons r e a l i z e t ha t l i nk ing t he i r s e l f - con t a ined bus ine s s

ope ra t i ons wou ld bene f i t a l l componen t compan i e s . Hence t h rough

one adve r t i s i ng campa ign , a l l t he p roduc t s o f t he company a r e

exposed t o t he aud i ence . Th i s a l so bu i l d s up t he image o f t he

company and a l l i t s b r ands .

Example : AMUL - REAL TASTE OF INDIA campa ign t ha t was

qu i t e succe s s fu l .

O the r umbre l l a c ampa igns a r e t ha t o f CAMLIN, WIPRO, ADITYA

BIRLA GROUP, PARLE ‘wor ld o f happ ine s s ’ , e t c .

Campaign to push dec l in ing sa l e s : The pu rpose o f t he c ampa ign

may no t be t o i nc r ea se o r s t ab i l i z e s a l e s , bu t t o ho ld o f f a dec l i ne .

Th i s ove ra l l c a t ego ry masks va r i ous t ypes o f dec l i ne fo r wh ich

d i f f e r en t adve r t i s i ng app roaches a r e nece s sa ry . One adve r t i s i ng

campa ign may have a s i t s pu rpose coun t e r i ng t he na tu r a l dec l i ne i n

t he ma rke t . Ano the r pu rpose migh t be t o su s t a in an ex i s t i ng b r and

aga in s t compe t i t i on .


Whe re t he ma rke t f o r t he company’ s p roduc t i s s t e ad i l y

d imin i sh ing , i t i s unwi se t o expec t adve r t i s i ng t o work mi r ac l e s and

r eve r se t he pe rmanen t t r end : i t may howeve r be ab l e t o make some

con t r i bu t i on by s l owing t he r a t e o f dec l i ne , t hus g iv ing t he company

t ime t o s eek new oppor tun i t i e s i n o the r d i r ec t i ons .

Wherea s adve r t i s i ng can make a f a r more pos i t i ve con t r i bu t i on

i s i n coun t e r i ng t empora ry f a l l s i n s a l e s . Pos i t i ve adve r t i s i ng ,

emphas i z ing va lue fo r money , c an he lp peop l e ad ju s t more sw i f t l y t o

t he new cond i t i ons .

Example : RASNA was a dec l i n ing p roduc t even a f t e r be ing i n t he

ma rke t f o r 4 yea r s and even t hough i t was an en t i r e l y new concep t

o f a b r anded so f t d r i nk concen t r a t e . I n 1982 non -ae ra t ed so f t d r i nk

marke t was e s t ima t ed a t a round Rs 13 c ro r e s . Squashes and sy rups

we re t he l e ad ing p roduc t c a t ego r i e s , a ccoun t i ng fo r 84% o f t he

ma rke t . So f t d r i nk concen t r a t e s had a sha re o f 7% on ly . I t was

r e cogn i zed t ha t t he r e ex i s t ed a good po t en t i a l ma rke t f o r RASNA , i f

adve r t i s ed p rope r ly .


CH 5.1 ADVERTISING COMPONENTS OF FMCG INDUSTRY

Adve r t i s emen t s cons i s t s o f va r i ous componen t s . These componen t s

c r ea t e a d i s t i nc t i den t i t y f o r t he p roduc t . I n c e r t a i n c a se s , t he se

componen t s t hemse lve s have become b r ands .

The va r i ous componen t s o f adve r t i s i ng a r e a s f o l l ows :

MASCOT : A masco t i s a t r ade cha rac t e r o r t r ade f i gu re . The

masco t i s u sua l l y a f i c t i t i ous cha rac t e r . I t s t ands f o r t he

company o r t he p roduc t . I t h a s immense adve r t i s i ng va lue .

When t he cha rac t e r becomes popu l a r , i t r eminds one o f t he

company o r t he p roduc t s i n s t an t l y . I t a c t s a s a symbo l so

un ique t ha t no one c an im i t a t e o r c l a im i t . Some o f t he we l l

- known masco t s a r e t he Amul moppe t , A i r - I nd i a Maha ra j a ,

Ga t t u (As i an Pa in t s ) , MRF man , Ambu ja Cemen t man , On ida

dev i l , Ke lv ina to r pengu in , Mi lkma id l ady , e t c .


LOGO : The d i sp l ay o f t he company name , s ea l o r t r ademark

i s c a l l ed a l ogo type and i s a common pa r t o f mos t

adve r t i s emen t s . These l ogos have c r ea t ed a d i s t i nc t i den t i t y f o r

t he b r and . Many r epu t ed compan i e s en joy r e cogn i t i on among t he

masse s w i th t he a i d o f t he i r l ogo . Some we l l - known l ogos

a r e :

SLOGAN : Mos t compan i e s have u sed s l ogans f o r s eve ra l yea r s

and t he s l ogans have become a symbo l o f i den t i f i c a t i on f o r

t he company . Mos t o f t he consumer s i den t i fy t he p roduc t a s

soon a s t hey hea r t he s l ogan . Many compan i e s u se t he s l ogan

o f t he i r we l l - known p roduc t s i n o rde r t o adve r t i s e t he i r


o t he r p roduc t s and t o ga in b r and r e cogn i t i on . Some we l l -

known s l ogans a r e

Coca - Co la : Thanda Ma t l ab Coca - Co l a .

Br i tann ia : Ea t Hea l t hy , Th ink Be t t e r .

Amul : The Tas t e Of Ind i a .

Videocon: B r ing Home The Leade r .

As we know FMCG SECTOR i s f u l l o f i nnova t i ons and c r ea t i v i t y

and t he se i nnova t i ons and c r ea t i v i t y a r e u sed i n t he p romot iona l s chemes

and adve r t i s i ng w i th a mo t ive o f cus tomer s b r and r eca l l wh i ch i nd i r ec t l y

he lp s t he company t o i nc r ea se i t ’ s s a l e s and t he g rowth o f t he company

Here are some o f the o ther adver t i s ing component s / ways o f u s ing

these component s wh ich he lps to increase the reca l l f ac tor

1 . S logans : The S logans /Punch l i ne s wh ich t he company u se s o r a t t a ches

t o t he adve r t i s i ng and t he b r ands can be u sed i n t he fo l l owing ways wh ich

may i nc r ea se t he r e ca l l f a c to r

Not s a t i s f i ed w i th you r da t e s

o Yeh d i l mangey more (Peps i )

I f you a r e go ing t o p ropose t o a g i r l , chances a r e

o 50-50 (Br i tann ia )

A guy hav ing a number o f g i r l f r i ends

o The Comple te Man(Raymonds )


2 . Sounds /Songs : Some b rands have a t une o r a sound a s soc i a t ed w i th

t he i r b r and , wh ich he lp s and p l ays an impor t an t r o l e i n i nc r ea s ing t he

r e ca l l f a c to r o f t he p roduc t .

Eg ’ s

Br i tann ia : “TING TING TI T ING”

Nesca fe : “PA PARAPE PA RA RA”

Lir i l : “LA LALALA LA LA LALA A LA LA LA”

3 . R ing tones : Compan ie s have u sed t he i r sounds o r song a s t he r i ng tones

o f t he mob i l e a s t he se i s f ound t o be t he be s t and mos t e f f ec t i ve way o f

r e ca l l f a c to r a s t he se r i ng tones a r e p r e f e r r ed by mos t o f t he peop l e c ause

t he se r i ng tones c an be t r ans f e r r ed o r f o rwa rded a s messages and u sed by

mos t o f t he mob i l e u se r s .

Eg .

NESCAFE

ZANDU BALM


CH 6.1 SWOT ANALYSIS OF FMCG INDUSTRY

STRENGTHS:

Wel l - e s t ab l i shed d i s t r i bu t i on ne twork ex t end ing t o ru r a l a r ea s .

St rong b r ands i n t he FMCG sec to r .

Low cos t ope ra t i ons

WEAKNESSES:

Low expo r t l eve l s .

Sma l l s ca l e s ec to r r e se rva t i ons l im i t ab i l i t y t o i nves t i n t e chno logy and

ach i eve economies o f s ca l e .

Seve ra l "me- too ’ ’ p roduc t s .

OPPORTUNITIES:

Large domes t i c ma rke t .

Expor t po t en t i a l

Inc r ea s ing i ncome l eve l s w i l l r e su l t i n f a s t e r r evenue g rowth .

THREATS : 42 | P a g e

IIPM/FW/08-10/MUM/HR/148

Impor t s

Tax and r egu l a to ry s t ruc tu r e

Slowdown in ru r a l demand

CH 7.1 CASE STUDY : BRAND STORY “LIRIL”

LIRIL

The f re shnes s o f l ime coup led w i th a shower o f coo l water - does

th i s br ing a p i c ture to your mind or does i t r ing LA LA LA LA, LA LA

LA…! LA….LALALALA…LA?? The per fec t combinat ion o f a r e f re sh ing

ba th tha t can be symbo l i zed by Ind ia ’ s mos t r e f re sh ing soap- l i r i l !

Li r i l was l aunched i n t he 70s a s f r e shnes s soap . Consumer s u sua l l y

a s soc i a t e t hemse lve s w i th t he b r and t ha t because i t

g i ve s t hem psycho log i ca l g r a t i f i c a t i on . I n t he e a r l y

70s a ma rke t r e sea r ch agency found ou t t ha t

housewives had t yp i ca l ‘ needs o f f an t a s i z i ng ’ . The i r

f an t a sy was t u rned i n to r e a l i t y i n t he L i r i l ad .

A t l e a s t 30 yea r s ago , a t e am o f manage r s appo in t ed by J agd i sh

Chopra ’ t he t hen marke t i ng d i r ec to r o f H indus t an Un iLeve r (HUL) , t o

c r ea t e f r e shnes s soap i n p r emium p r i ce s egmen t a t t emp ted a b lue soap t ha t

p romi sed f r e sh moun ta in b r eeze . A b ra in s to rming s e s s ion s t e e r ed by l a t e

ma rke t i ng gu ru shunu s en was he ld t o f i nd ou t wha t ‘ f r e shnes s ’ mean t :

l i ke wa lk ing ba re foo t on marb l e ’ be ing spayed w i th a j e t o f wa t e r , l i ke i cy

b lue and t he l i ke , t hey came up w i th i cy b lue . Whi l e t e s t ma rke t i ng i n 43 | P a g e

IIPM/FW/08-10/MUM/HR/148

Nash ik and Indo re , t he b lue l i r i l f a i l ed and t he i dea have t o be she lved .

So , t hey t ook t he he lp o f t he young , B r i t i sh ma rke t i ng head and c r ea t ed a

g r een marb l e soap . I t was a r egu l a r l ime soap owned by l eve r .

The t e am’s a im was t o ge t i n to househo lds w i th a bang . Ex t ens ive

r e sea r ch conduc t ed on young women and housewives he lped t hem ga in an

i n t e r e s t i ng i n s igh t ; i t was found t ha t an ave rage Ind i an woman who l i ved

w i th he r husband ’ s f ami ly had t o unde rgo a l o t o f p r e s su re s i n he r da i l y

l i f e due t o he r du t i e s and r e spons ib i l i t i e s t owards t he f ami ly and

househo lds .

Appa ren t l y t he on ly t ime she had he r f o r he r se l f was t he 10 -15

minu t e s t ha t she was i n t he shower . Th i s t hough t p rovoked t he l i r i l

adve r t i s emen t c r ea t ed by Neena merchan t , w i t h t he he lp o f a l yque

padamsee , t he t hen d i r ec to r o f L in t a s f e a tu r i ng a g r een sw imsu i t c l ad g i r l ,

f r o l i ck ing en thus i a s t i c a l l y unde r a wa t e r f a l l .

The momen t o f l i be r a t i on t ha t l i r i l p rov ided was we l l a ccep t ed by

t he women o f I nd i a and no t on ly d id t he ad became popu l a r ; l i r i l b ecame

p remium soap ove rn igh t . The b r and became a ma rke t l e ade r i n t he

c a t ego ry o f ‘ p r emium f r e shnes s soaps ’ w i th in a yea r o f i t s l aunch ,

ove r t ak ing b r ands l i ke C in tho l and Myso re s anda l .

I n h i s book ‘ a doub l e l i f e ’ , a l yque padamsee , t he god fa the r o f

I nd i an adve r t i s i ng t a l k s a l o t abou t h i s mos t succe s s fu l c ampa igns and t he

i dea s t ha t wen t i n to mak ing t hem. He s ays t ha t g r ea t commun ica t i on i s

when t he r e i s f u s ion be tween t he word and t he p i c tu r e . Padamsee who


t ends t o t h ink i n v i sua l s a s se r t s t ha t t he sho t o f t he g i r l unde r t he

wa t e r f a l l i n t he l i r i l f i lm i s more impor t an t t han t he fo rge t t ab l e head l i ne

‘ come a l i ve w i th l i r i l f r e shnes s ! ’

THE FIRST LIRIL AD

The f i r s t l i r i l ad was a mas terp i ece o f i t s own ca l iber , a produc t

o f a lyque Padamsee ’ s imag ina t ion . I t was sho t in Koda ikana l a t a

water fa l l a l i t t l e beyond Guna caves .

Karen Lune l , t he f i r s t l i r i l g i r l r e i gned fo r a l ong t ime and was

succeeded by Anoosha Da l a l and many more i nc lud ing t he l a t e s t P r i e t y

Z in t a . Bu t even t hough t he s cenes , g i r l s and t he cho reog raphy changed , a

pa r t o f t he o r i g ina l mus i c was s t i l l r e t a i ned .

The l i r i l g i r l i s one o f t he b r and ’ s s t r onges t adve r t i s i ng p rope r t i e s .

T ry a s t hey migh t , HUL and Lowe have no t been ab l e t o t he l i r i l g i r l f r om

he r pos i t i on . As a r e su l t , c e r t a i n amoun t o f d rudge ry began t o s e t i n to ads .

Meanwhi l e t he ma rke t was head ing t owards n i che s egmen ta t i on whe re

p roduc t s we re pos i t i oned i n t he consumer ’ s m ind i n such a way a s t o o f f e r

a pa r t i cu l a r bene f i t . Eg . L i f ebuoy - t he hea l t h soap . Pea r s – t he gen t l e

soap . L i r i l ’ s i dea o f ‘ f r e edom the u sua l r ou t i ne ’ f a i l ed t o c r ea t e an i dea o f

f r e edom a s aga in s t t he ads o f t he compe t i t o r s t ha t i dea t ed we l l t o s i ng l e

bene f i t be ing o f f e r ed t o consumer . L i r i l l o s t a ma jo r chunk o f i t s s a l e s ,

nea r l y 50 c ro r e s i n va lue because o f compe t i t i on f rom Ni rma t ha t banked

on i t ’ s s cen t o f r o se s . L i r i l wea the red rough wa t e r s w i th r e j uvena t ed ads

add re s se s t onew gene ra t i on women l i v ing f a s t paced ca r ee r -o r i en t ed l i f e

t hus r e cove r ing much o f l o s t ma rke t sha r e .


L i r i l ’ s bo ld commun ica t i on i s we l l known even t i l l d a t e , 25 yea r s

a f t e r i t s b i r t h . I t ’ s a symbo l o f j uvenen i l e exube rance and an exp re s s ion

OF FREEDOM AND FRESHNESS. ITS SONIC BRANDING ‘ LA ………

lala la LA ……la la l a l a l a la la ’ works wonde r s on t he consumer ’ s b r a in

c e l l s and i s t an t amoun t t o t he g r aph i c , l ogo and l ime !

Ju s t t he sound o f t he j i ng l e t r anscends a who le new wor ld o f l i r i l

f r e shnes s f r e edom.

The pa ren t company H indus t an Un iLeve r (HUL) ha s s eve ra l l e ad ing

t o i l e t soap b r ands i n d i f f e r en t p r i c e s egmen t s and domina t e s a t l e a s t 63 %

o f t he ma rke t sha r e i n t he t o i l e t soap marke t . L i f ebuoy , Haman , L i r i l ,

Lux , Pea r s – a r e a l l HUL’s l e ad ing b r ands . L i f ebuoy i s t he l a rge s t s e l l i ng

soap i n Ind i a . Soaps l i ke L i r i l , Rexona and Lux we re r e - l aunched i n 1998 -

99 t o he lp ga in t he l o s ing marke t sha r e . HUL’s power b r and S t r a t egy

he lped bea t t he dec l i n ing marke t and pos t s t r ong g rowth i n 2002 .

Wi th i nnova t i ve s t r a t eg i e s t o w in consumer a t t en t i on , t he r e was a

l e ap i n qua l i t y and marke t a c t i va t i on t ha t l e ad t o doub l e -d ig i t g rowth fo r

L i f ebuoy , L i r i l and Lux . L i r i l ’ s g rowth was spa rk l ed by t he new add i t i on

– L i r i l I cy Coo l Min t . ‘ I cy T ry Ka roge? ’ t h i s new va r i an t ha s r e f r e shed

t he 25 yea r o ld b r and ’ s equ i t y o f ‘ f r e shnes s and exube rance o f you th ’ t hus

g iv ing i t doub l e -d ig i t g rowth . The t i ng l i ng men tho l o f f e r s a un ique

coo l i ng s ensa t i on t o t he sk in . To open up a new p remium segmen t , l i r i l

h a s a l so ven tu red i n to body Wash – ‘Shower Ge l ’ .


F rom ‘ come a l i ve w i th f r e shnes s ’ t o I c e T ry Ka roge? ’ L i r i l ha s come

a l ong way , g rown a s a b r and and found a space fo r i t s e l f i n t he

consumer ’ s m ind .

CH 7.2 CASE ANALYSIS : GASPING FOR SURVIVAL

Why d idn ' t the mouthwash ca tegory b i t e in Ind ia?

In t he mid 1990s mou thwash manufac tu r e r s pu t t he i r money whe re

t he mou th was . Mu l t i na t i ona l s l i ke Johnson & Johnson and Pa rke Dav i s

w i th t he i r b r ands Reach and L i s t e r i ne r e spec t i ve ly s l ugged i t ou t i n t he

ma rke t a l ong w i th l oca l p l aye r s l i ke E lde r Pha rmaceu t i c a l s ' Am Pm and

Pa r l e P roduc t s ' P ruden t .

By t he end o f t he decade , mos t o f t he comba t an t s had t o e a t t he i r

words . Today on ly L i s t e r i ne and Am Pm a re s t i l l b r ea th ing ; o the r s l i ke

Reach and P ruden t ( l a t e r so ld t o G i l l e t t e ) have done t he van i sh ing ac t . As

fo r t he c a t ego ry , i t s e ems t o be ga sp ing fo r b r ea th .

And t he sound o f t he dea th kne l l i s l oud & c l ea r . As vo lume sa l e s

d ipped t o j u s t 895 t onnes i n J an Dec 2000 , compa red w i th 943 t onnes i n

t he s ame pe r i od o f 1999 , t he on ly way ana ly s t s s ee t he c a t ego ry go ing i s

down .

Ana lys t s , mou thwash manufac tu r e r s and t oo thpas t e manufac tu r e r s


unan imous ly s ay t ha t t h i s was i nev i t ab l e . Acco rd ing t o t hem, Ind i an

consumer s neve r f e l t t he need fo r a mou thwash . Cons ide r i ng t ha t t he r e a r e

a number o f p roduc t s t ha t s co red h i t s even t hough Ind i an consumer s d idn ' t

f e e l t he need fo r t hem, whe re was i t t ha t mou thwash marke t e r s f a i l ed?

The admis s ion o f one i ndus t ry sou rce sugges t s a more accu ra t e

answer : We neve r unde r s tood t he bus ine s s enough t o r e ap t he bene f i t s . I n

Ind i a , mou thwash i s e s sen t i a l l y cons ide red a t he r apeu t i c r a t he r t han a

cosme t i c p roduc t . L ike o the r pha rma p roduc t s , even mou thwash i s so ld

t h rough two rou t e s p r e sc r i p t i on and OTC (ove r t he coun t e r ) .

The OTC ca t ego ry ha s b r ands l i ke L i s t e r i ne , Am Pm and t he r e cen t l y

l aunched Co lga t e To t a l P l ax (un t i l r e cen t l y Reach and P ruden t we re a l so

so ld t h rough t h i s r ou t e ) . Whi l e t he ove ra l l c a t ego ry i s va lued a t Rs 37

c ro r e , a cco rd ing t o f i gu re s fo r J anua ry December 2000 , OTC sa l e s a ccoun t

f o r app rox ima te ly Rs 5 c ro r e a d i sma l pe r fo rmance i f you cons ide r t ha t

t he t u rnove r was nea r l y t he s ame i n 1996 .

The r ema in ing Rs . 32 c ro r e o f s a l e s t ake p l ace f rom the e th i ca l r ou t e

p r e sc r i bed by med i ca l p r ac t i t i one r s t h rough b rands l i ke Be t ad ine by

De lh i ba sed Win Med ica r e , Wokad ine o f Wockha rd t , Hex id ine , P iod in ,

C lohex and s eve ra l o the r s .

Be t ad ine , t he ma rke t l e ade r o f t he e t h i ca l c a t ego ry , i s a l so t he

ove ra l l c a t ego ry l e ade r . Wi th a 28 .8 pe r c en t sha r e o f t he ma rke t , a l ong

w i th i t s va r i an t Be t ad ine Ga rg l e w i th a 9 .1 pe r c en t sha r e , Be t ad ine

co rne r s a hea l t hy 37 .1 pe r c en t vo lume sha re .

L i s t e r i ne , t he f i r s t mou thwash b r and i n t he wor ld and t he mos t

popu l a r OTC b rand i n t he coun t ry comes a poo r s econd w i th a 12 .6 pe r

c en t sha r e . I t s va r i an t L i s t e r i ne Coo l Min t adds ano the r 6 .9 pe r c en t


t ak ing L i s t e r i ne ' s sha r e t o 19 .5 pe r c en t o f t he t o t a l c a t ego ry .

The s i t ua t i on i s even more g r im in t he OTC segmen t . Though

L i s t e r i ne commands a hea l t hy 82 pe r c en t sha r e o f t he OTC ca t ego ry , i t i s

on ly a Rs 4 c ro r e b r and .

Fu r the r , demand i n t he c a t ego ry i s d r i ven by compu l s ion r a the r t han

de s i r e . Use o f a mou thwash i s adv i s ed by med i ca l p r ac t i t i one r s ma in ly a s

a cu re fo r o r a l hea l t h p rob l ems l i ke g ing iv i t i s ( i n f l ammat ion o f t he

gums) and ha l i t o s i s ( bad b r ea th ) .

Once t he p rob l em subs ide s , t he mou thwash i s no l onge r u sed . I n

con t r a s t , i n wes t e rn coun t r i e s , mou thwash f a l l s unde r t he hab i t ua l u sage

ca t ego ry . I t i s u sed by consumer s a s a r ou t i ne a f t e r smok ing o r a f t e r

mea l s . A b rand manage r w i th an OTC mou thwash manufac tu r e r s ays , I n

t he Wes t , u se o f mou thwash i s a p r even t i on r a the r t han a cu re .

I n Ind i a , ma rke t e r s d id l i t t l e t o c r ea t e t h i s k ind o f need fo r t he i r

p roduc t s . Mou thwash was a lways a complemen ta ry p roduc t and neve r a

subs t i t u t e f o r ba s i c o r a l c a r e (b ru sh ing t e e th ) . I n a coun t ry whe re mode rn

den t a l c l e an ing agen t s l i ke t oo thpas t e , o r even t oo thpowde r , a r e u sed by

on ly s i x ou t o f 10 peop l e and t ha t t oo , spa r i ng ly . Mou thwash was

cons ide red an add i t i ona l expense .

Acco rd ing t o Co lga t e Pa lmo l ive , t he consumpt ion o f t oo thpas t e i n

Ind i a i s j u s t 82 g r ams (153 g r ams i n u rban Ind i a ) pe r head compa red t o

t he US a t 518 g r ams . Even coun t r i e s l i ke Tha i l and and Mex ico r eco rd

consumpt ion pa t t e rn s o f 262 g r ams and 376 g r ams pe r head r e spec t i ve ly .


Mou thwash manufac tu r e r s made a t ough marke t s i t ua t i on wor se by

p r i c i ng mou thwash a t t he h ighe r end . A cus tomer had t o she l l ou t Rs 27

fo r an 85 ml bo t t l e t ha t cou ld be u sed on ly on fou r occa s ions (20 ml pe r

u sage ) and Rs 45 fo r a 250 ml bo t t l e . I n compa r i son , consumer s cou ld buy

a s t ock o f t oo thpas t e fo r a f ami ly o f f ou r fo r an en t i r e mon th a t t ha t co s t .

Compound ing t h i s was a t i gh t l e a sh on adve r t i s i ng and p romot ion

budge t s , wh i ch d id no th ing t o improve awarenes s o f t he c a t ego ry .

Compare t h i s w i th wha t , f o r example , H indus t an Leve r d id t o c r ea t e

a ma rke t f o r Fa i r and Love ly .

I f l a ck o f awa renes s was a ma jo r p rob l em, ma rke t e r s cou ld have

i nduced t r i a l s by o f f e r i ng sma l l e r packs . He re , manufac tu r e r s cou ld have

t aken a cue f rom shampoo manufac tu r e r s who had f aced a s im i l a r p rob l em

in t he coun t ry .

T i l l t he l a t e e i gh t i e s shampoos we re so ld on ly i n p l a s t i c bo t t l e s and

we re h igh ly p r i c ed . I n t he e a r l y n ine t i e s , shampoo marke t e r s s t a r t ed

s e l l i ng shampoo i n s ache t s t ha t co s t j u s t Re 1 o r Rs 2 , and l ed t o a v i r t ua l

exp lo s ion o f t he ma rke t .

The r e su l t was a h igh amoun t o f t r i a l pu rchase s t ha t u l t ima t e ly

i nc r ea sed vo lumes fo r t he c a t ego ry . The succe s s s t o ry i s t he r e fo r a l l t o

s ee ; even t oday s ache t s a ccoun t f o r 70 pe r c en t o f shampoo sa l e s i n Ind i a .

I n s t e ad , mou thwash manufac tu r e r s i n Ind i a chose t o s e l l on t he i r

own t e rms vo lumes f i r s t and new in i t i a t i ve s a f t e rwa rds r a t he r t han on

t hose o f t he consumer .


Fo r t he manufac tu r e r s t hemse lve s , t he r e was a dea r t h o f i n t e r e s t i n a

c a t ego ry a s m inu t e a s mou thwash . Whi l e Pa rke Dav i s i nves t ed t ime , money

and e f fo r t on o the r succe s s fu l OTC b rands l i ke Benad ry l o r Ge lus i l , o t he r s

l i ke E lde r Pha rmaceu t i c a l s had more p ro f i t ab l e b r ands l i ke T ige r Ba lm ,

wh ich go t a l l t he a t t en t i on . As a consequence , t he i r r e spec t i ve mou thwash

b r ands su f f e r ed .

Th i s was no t su rp r i s i ng . L i s t e r i ne accoun t s f o r j u s t two pe r c en t o f

Pa rke Dav i s ' t u rnove r . As an execu t i ve r emarks , Marke t e r s we re c augh t i n

a ch i cken and egg s i t ua t i on shou ld t hey i nc r ea se ma rke t i ng and adve r t i s i ng

spends f i r s t o r wa i t f o r s a l e s t o p i ck up .

I n t e rna t i ona l l y , howeve r , t he 121 yea r o ld b r and L i s t e r i ne deve loped

by Dr Jo seph L i s t e r i n 1879 s e l l s i n a l t e rna t i ve packages l i ke 20 ml

s ache t s and i n t he fo rm o f s t r i p s (packs o f 25 s t r i p s i n a t humb s i z ed

con t a ine r , t he s t r i p s d i s so lve i n t he mou th ) . Bu t f o r I nd i an marke t s t he se

i n i t i a t i ve s we re i gno red . I n s t ead , L i s t e r i ne so ld i n i t s v in t age packag ing

o f med i c ina l bo t t l e s ava i l ab l e i n s i z e s o f 200 ml and 85 ml .

Th i s was a consc ious packag ing dec i s i on t o r e en fo rce t he

t he r apeu t i c bene f i t s o f t he b r and . Bu t t he du l l packag ing neve r gene ra t ed

t he k ind o f i n t e r e s t t ha t wou ld i nduce t r i a l s . Even t hough L i s t e r i ne

changed ove r t o a t r endy PET packag ing i n 2000 , i t cou ld have been a

change t ha t c ame a b i t t oo l a t e .

Bu t o the r b r ands l i ke P ruden t l aunched a round 1993 by Pa r l e

P roduc t s and l a t e r so ld t o G i l l e t t e and Johnson and Johnson ' s Reach

l aunched a round t he s ame t ime t ha t we re so ld w i th i nnova t i ve PET


p ackag ing i n t he i r hey days neve r a t t a i ned t he awa renes s l eve l s o f

L i s t e r i ne , wh ich had a head s t a r t o f a c en tu ry

Even a s mou thwash manufac tu r e r s f a i l ed t o bu i l d demand , a s econd

whammy came f rom too thpas t e manufac tu r e r s when t hey l aunched t he i r

ge l va r i an t s . H indus t an Leve r ' s C lose Up was t he f i r s t t o f amous ly ca sh i n

on t he f r e sh b r ea th USP to e s t ab l i sh i t s e l f . Toge the r w i th Co lga t e ' s F r e sh

Ene rgy Ge l , t he se t oo thpas t e s , t hus , o f f e r ed bene f i t s s im i l a r t o t ha t o f a

mou thwash .

The succe s s o f t he ge l c a t ego ry o f t oo thpas t e showed t ha t , de sp i t e

mou thwash manufac tu r e r s ' c l a ims , t he r e de f i n i t e l y was a ma rke t f o r o r a l

r e f r e shene r s . I n t he end , howeve r , t oo thpas t e s swa l l owed up t he

mou thwash marke t .

And no th ing d rove home the po in t be t t e r t han t he succe s s o f such

s eeming ly un re l a t ed p roduc t s a s Nes t l e ' s Po lo min t , and Pas s Pa s s mou th

f r e shene r f rom a De lh i ba sed cond imen t manufac tu r e r . To comba t t he

compe t i t i on , L i s t e r i ne l aunched a va r i an t Coo l Min t i n e a r l y 1995 . Bu t i t

d i d l i t t l e t o improve ma t t e r s and t hough Coo l Min t i nc r ea sed L i s t e r i ne ' s

sha r e by fou r t o f i ve pe r c en t , t he mo the r b r and was s t agna t i ng . By t h i s

t ime , Nes t l e ' s Po lo and C lo re t s we re ava i l ab l e a t eve ry ho l e in the wa l l

ou t l e t .

The l e t ha l b low came f rom the spec i a l i s t s t he med i ca l p r ac t i t i one r s .

Acco rd ing t o a Mumba i ba sed den t i s t , t he r e i s no genu ine need fo r a

mou thwash among Ind i an consumer s a s t he i dea o f o r a l hyg i ene among

Ind i ans i s f a r r emoved f rom the wes t e rn concep t .

Moreove r , I nd i an consumer s v i s i t ed den t i s t s on ly i f t he r e i s a


p rob l em a s opposed t o t he US whe re den t a l check ups a r e manda to ry . And

o the r wes t e rn hab i t s l i ke f l o s s ing on a week ly ba s i s ( r emov ing depos i t s

be tween t e e th and gums wi th a s i l k t h r ead ) we re unhea rd o f i n Ind i a .

Wha t s ea l ed t he f a t e o f t he c a t ego ry we re d i s t r i bu t i on p rob l ems .

Mou thwash i n i t s t he r apeu t i c f o rm cou ld be so ld on ly t h rough

pha rmac i s t s . P ruden t p roposed t o be d i f f e r en t . Dec ided ly a cosme t i c

p roduc t , P ruden t cou ld r e t a i l t h rough t he FMCG rou t e . Th i s gave i t a

de f i n i t e d i s t r i bu t i on edge , bu t t hen ; P ruden t had a t r ade o f f i n t ha t i t

o f f e r ed no t he r apeu t i c bene f i t .

B rands l i ke L i s t e r i ne have l aunched l ow budge t p romot ions fo r

i nc r ea s ing u sage o f mou thwash i n i n s t i t u t i ons , by o f f e r i ng t hem

compl imen t a ry supp l i e s o f mou thwash i n t he i r o f f i c e fo r a week , and

E lde r ' s Am Pm i s expec t ed t o t ake t he p romo p lunge soon . Bu t t he t i de i s

c e r t a i n ly aga in s t t he p l aye r s .


QUESTIONNAIRE

1) What would you prefer more?a) Attractive ads b) Information of product

2) Are you brand consciousa) Yes b) No

3) What influences you to buy a product?a) Advertising b) Price c) Promotional schemes d) Product utility

4) The success of a product depends upon?a) Advertising b) Brand name c) Product d) Price e) Promotional schemes

5) What do you feel is the recall factor of a product?a) Logo/brand name b) Advertising c) Slogan d) Product utility e) Schemes

6) Would your buying decision be affected by the advertisement? a) Yes b) No

7) Among the following media’s, which do you find the most effective?a) TV b) Press c) Online d) Outdoors e) Radio f) Others (please specify)

8) Are ads sufficient for you to be pulled to buy a product?[ ] Yes [ ] No

9) Do Celebrity endorsements attract you for a particular FMCG product?[ ] Yes [ ] No

10) Which soap would you prefer the mosta) Lux b) Rexona c) Dettol d) Pears


11) Which factors mostly affects your decision while purchasing any FMCG products?a) Friends b) Advertisement c) Parents d) Others

12) Which company’s ads you like most?a) HUL b) ITC c) P & G d) Dabur

ANALYSIS

1) What would you prefer more?

b) Attractive ads b) Information of product

attractive ads Information of Product0%

10%

20%

30%

40%

50%

60%

70%

80%


The analysis done suggests that 70% of the people would prefer more attractive ads over informative ads

2.) Are you brand conscious

c) Yes b) No

65%

35%

Percentage

YesNo

The study suggests that 65% of the people are brand conscious.


3) What influences you to buy a product?

d) Advertising b) Price c) Promotional schemes d) Product utility

The research suggests that 55% of the people get influenced by advertising as compared to others.


55

10

25

10

Influence

4) The success of a product depends upon?

a. Advertising b) Brand name c) Product d) Price e) Promotional schemes

This


Advertising

Brand name

Product

Price

Promotional schemes

35

35

5

5

20

The analysis shows that Brand name and Advertising are the major factors for the success of the product in the market

5) What do you feel is the recall factor of a product?

a. Logo/brand name b) Advertising c) Slogan d) Product utility e) Schemes


45% 35%

5%5%

10%

Logo/brand name Advertising Slogan Product utility Schemes

This shows that Brand name and Advertising are the recall factors of the product. The

product is remembered by their name or their creative ad’s.

6) Would your buying decision be affected by the advertisement?

a) Yes b) No


Yes No0%

10%

20%

30%

40%

50%

60%

70%

Percentage

Percentage

Nearly 70%% of the people said that their buying decision is influenced for the product by creative advertising and promotional schemes.

7) Among the following media’s, which do you find the most effective?

a. TV b) Press c) Online d) Outdoors e) Radio f) Others (please specify)


Of the various media’s TV is found to be the most influenced and source of information about the product to the customers followed by Press

8) Are ads sufficient for you to be pulled to buy a product?

[ ] Yes [ ] No


TV

Press

Onlin

e

Outd

oors

Rad

io

Oth

ers

0

5

10

15

20

25

30

35

40

34

24

18

1012

2

Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Chart Title

Percentage

The study done shows that the advertisement plays about 80% roles in pulling a person’s attention

9) Do Celebrity endorsements attract you for a particular FMCG product?

[ ] Yes [ ] No


55%

45%

percentage

yesno

The research done reveals that 55% of the people buy a product due to influence of celebrities

10) Which soap would you prefer the most

a. Lux b) Rexona c) Dettol d) Pears


luxRexona

DettolPears

0%

5%

10%

15%

20%

25%

30%

35%

Percentage

Percentage

The study shows that, given a choice, 35% of the people would choose Dettol as compared to any other soaps.

11) Which factors mostly affects your decision while purchasing any FMCG products?

a. Friends b) Advertisement c) Parents d) Others


Friends

Advertisement

Parents

Others

0% 5% 10% 15% 20% 25% 30% 35%

Percentage

Percentage

According to the study, 35% of the peoples buying behavior is influenced by advertising.

12) Which company’s ads you like most?

a. HUL b) ITC c) P & G d) Dabur


HUL ITC P&G DABUR0%

5%

10%

15%

20%

25%

30%

35%

40%

Percentage

Percentage

On the basis of the research, HUL advertisements are most liked by the people followed by ITC.

ANCHOR HEALTH AND BEAUTY CARE PVT. LTD

ANCHOR – THE GROUP

I t was way back i n 1963 t ha t two b ro the r s , J adhav j i Shah and Damj i

Shah s e tup Anchor E l ec t r i c a l s .


As a pa r t o f i t ’ s on go ing g rowth p roce s s Anchor s e t up Anchor

hea l t h and Beau ty Ca re on Oc tobe r 12 t h 1992 . Th i s company ha s

succe s s fu l l y l aunched FMCG Produc t s and i s s e l l i ng a w ide r ange o f

t o i l e t r i e s , co sme t i c s , con fec t i one r i e s & he rba l p roduc t s and ha s a 8 %

marke t sha r e t oday .

The d r i v ing fo r ce beh ind Anchor i s t he mo t to ; “To marke t i s t o

s erve Be t t er” .

Compet i tor s :

Co lga te Pa lmol ive ’ s Co lga te ;

Hindus tan Uni l ever Pepsodent

Anchor ha s ga ined second pos i t i on i n two s t a t e s i . e . Ra j a s than and

Gu ja r a t aga in s t compe t i t i on w i th HUL’s Pepsoden t .

Produc t : Anchor Whi te Tooth Pas te . The Too thpas t e i s 100% vege t a r i an .

Pr ice : Anchor Whi t e Too th pa s t e i s p r i c ed at Rs 50 / - f or 150 gms

Place : The Company ha s a ma rke t sha r e o f 11 -14 % in u rban and i n t he

ru r a l s ec to r s o f I nd i a , a s t he company had i t s ba se i n t he ru r a l s ec to r i t

s t a r t ed t o g row f rom the ru r a l s ec to r and emerged i n t he u rban marke t

g iv ing s t rong compe t i t i on t o t he ma jo r p l aye r s o f t h i s s ec to r .

Promot ions : The MRP fo r 200 g r am ancho r t oo thpas t e and t oo thb rush i s

Rs 54 and Rs 15 r e spec t i ve ly , t he combipack i s now o f f e r ed a t on ly Rs 25 .

I t ’ s adve r t i s i ng budge t s a r e a l l oca t ed i n t he fo l l owing manne r

P r in t med i a - 50%

Elec t ron i c Med ia - 20%

Poin t o f Pu rchase - 20%

Outdoo r - 10%


Some o the r ways o f p romot ions , wh ich a r e u sed by t he company , a r e

shown a s fo l l ows


formatted word thesis vikas

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