IMC-4 Session7-8 Sambhalpur

How are you feeling now ?
Framework for business

Marketing in a nutshell..
Marketing is about decision making
• HUL realized that soap market is getting
saturated in India
• http://articles.economictimes.indiatimes.com
/2012-08-17/news/33249614_1_soaps-
market-lifebuoy-sudhir-sitapati
What to do next ?
The Basic Framework
Now please try and answer
• Company
http://articles.economictimes.indiatimes.com/2009-07-18/news/27645995_1_hul-
lifebuoy-regional-brands
http://www.livemint.com/Money/pkyIKeqagzfWYtZypkd2IK/Soaps-detergents-save-
the-day-for-HUL.html
• Customer
http://www.bus.umich.edu/FacultyResearch/ResearchCenters/ProgramsPartnerships/I
T-Champions/Soap.pdf
• Competitor
http://www.livemint.com/Companies/1rhSudjBHKsbmlz0o3PGVK/HUL8217s-market-
share-declines-on-competition-slow-econo.html
http://www.thehindubusinessline.com/todays-paper/tp-brandline/huls-renewed-
soap-saga/article1011013.ece
• External Environment
Sample STP 1 – Tide Plus
Level 1 – Target Purchase Decision Makers are women (Gender)
Level 2 – Tide Plus target is urban (Town Class)
On top of these, we form psychographic profiles:
Outsiders Showboaters Slacker Socialite Experiencer Enthusiast
SEC D/E SEC D/E SEC C/D/E SEC B/C/D SEC A/B SEC A
Don’t care about Want laundry to Want results with Want clothes to Want to enjoy Everything has
laundry, it’s a appear clean & a minimum of look good as the laundry, to be top notch,
chore to get fresh without effort and no ill new, be a sign of especially when product should
done involvement effects to her social status wearing be best in class
Sample STP 2 – Vivel Facewash
13-19: Entrants 20-24: Experimenters
• Tackling acne/pimples, desire • Fight blackheads, dark circles
to look good when with friends and maintain even skin tone;
and in social circle want to look good at work and
home
25-30: Entrenched 30 Plus: Experienced

• Desire to combat pollution and • Anti-ageing, firming solutions
retain skin glow daily; fight that help retain moisture and
baggy eyes and minimizes wrinkles and ageing
marks/blemishes; Stay signs on face
glowing as ever while growing
in career and life
Market Segmentation
Requirements for Effective
Segmentation
Measurable •Size, purchasing power, profiles
of segments can be measured.
Accessible •Segments can be effectively

reached and served.
Substantial •Segments are large or profitable

enough to serve.
•Segments must respond
Differential differently to different marketing
mix elements & programs.
•Effective programs can be

Actionable designed to attract and serve
the segments.
Company can segment
• Urban Vs. Rural
• Male Soap Vs. Family Soap
• Usage
http://articles.economictimes.indiatimes.com/2012-08-
17/news/33249614_1_soaps-market-lifebuoy-sudhir-
sitapati
http://www.bus.umich.edu/FacultyResearch/ResearchCe
nters/ProgramsPartnerships/IT-Champions/Soap.pdf
http://www.business-standard.com/article/companies/a-
new-battleground-112121200202_1.html
Steps in Market Segmentation,
Targeting,and Positioning
Market Market Market
Segmentation Targeting Positioning
1. Identify 3. Evaluate 5. Identify

segmentation attractiveness possible
positioning
variables and of each concepts for
segment the segment each target
market segment
4. Select the
2. Develop target 6. Select,
profiles of segment(s) develop, and
communicate
resulting the chosen
segments positioning
concept
Targeting
• http://www.business-
standard.com/article/companies/a-new-
battleground-112121200202_1.html
• http://www.bus.umich.edu/FacultyResearch/
ResearchCenters/ProgramsPartnerships/IT-
Champions/Soap.pdf
Positioning
• Lifebuoy:
http://www.youtube.com/watch?v=D2LY9dYcKf
8
http://www.youtube.com/watch?v=Q3WXX0y9R
5Y
B2C Buying Cycle
B2B Buying Cycle
http://www.thehindubusinessline.com/marketing/hul-plans-pacts-with-
bimaru-states-to-build-franchise-for-lifebuoy/article4497659.ece
4 P’s of Marketing
17
Product
Reasons for Product launch
Customers are asking for a product
Gaps in the product line
An identified need exists in the marketplace which the product will fill
Publicity/Public Relations
Research has shown that…
Keeping up with competition
“We must use the budget dollars or we will lose them for next year.”
J
The product concept is the “pet” idea of a senior executive or powerful
F person in the organization
F We must introduce the product by the promised deadline
New Product Categories
• New-to-the-world
• New product lines
• Additions to product lines
• Improvements to products
• Repositioning
• Cost reductions
Factors That Limit New Product Development
• Shortage of ideas
• Fragmented markets
• Social and governmental constraints
• Cost of development
• Capital shortages
• Faster required development time
• Shorter product life cycles
New Product Development Decision
Scope of this REM
Concept Marketi
Idea Idea Develop ng Product Comme
Business Market
Generati Screeni ment Strategy Develop rcializati
Analysis testing
on ng and Develop ment on
Testing ment
Is the idea Is the product Can we find Can we find Will this Have we got Have Are product
worth idea a good a cost product a technically product sales
considerin compatible concept affordable meet our and sales met meeting
g? with company consumers marketing profit goal? commerciall expectations expectations
objectives, say they strategy? y sound ? ?
strategy and would try? product?
resources?
Concept Development
Idea Generated
Things
Attributes Benefits Cost Consumer
buy for
To be translated into Product Concept
Concept Testing
Concept Testing
• Communicability and believability

• Need level
• Perceived value
• Purchase intention
• User targets, purchase occasions, purchasing
frequency
Basic Steps to a Product Launch
Capturing marketing insights:

•Analyze the macro environment
•Analyze the demographic environment
•Others such as economic environment, natural environment
•Market research and demand forecasting
Segment the market and identify target group (STP)
Competitor analysis
Brand Positioning
Design marketing channels
Design a communication campaign

Results for Lifebuoy
• Small packs
• Hand Sanitizer
• Lifebuoy green
• Lifebuoy Active
Pricing
• Second Market Discounting –
• Periodic Discounting – sale of fashion
goods/apparel
• Random Discounting – Sale in
supermarkets/hypermarkets
• Penetration Pricing – Telecom sector
• Price Signaling – Branded products
• Premium Pricing – Wagon R Vxi etc
• Price Skimming – Pricing of electronic goods
(iPod, iPhone)
Pricing Concepts
• Reference Price
– Price point used by customer as a comparison
parameter
– Is different for different product categories
• LPA – Latitude of Price Acceptance

– Range of price points around the Reference Price
which a customer is willing to pay for a product
• Reference prices keep changing on account of

Assimilation-Contrast Theory
Types of Reference Prices
• IRP – Internal Reference Prices
– IRP assimilated by customer on account of
• Past prices
• Recency Effect
• Prior Promotions
• ARP – Advertised Reference Point
– Assimilated on account of in store price points
mentioned inside stores
– For Example – Before – Rs. 1300, Now – Rs. 760
• Store Specific RP
– Big Bazaar associated with low priced products
Place
Marketing
Strategy
Selling
Strategy
Advertising Role of sales Role of

Support force. distribution
Selling Style Channel
Effort Design
Territory
Selection
Managemen
Motivation
Motivation
of sales force
Place
• Marketing Channels
• Channels Conflict
• Depth of distribution
• Channel Strategy
http://www.thehindubusinessline.com/marketing/hul-
plans-pacts-with-bimaru-states-to-build-franchise-for-
lifebuoy/article4497659.ece
http://www.hul.co.in/Images/HUL_75Years_Special_Issue
_tcm114-194253.pdf
http://articles.economictimes.indiatimes.com/2011-02-
28/news/28641938_1_harpic-reckitt-benckiser-dettol
Influence of internet on the 4 Ps
Product Promotion
Allows for long-tail economics
Price Place
2 main approaches Global reach, and can serve multiple purposes

• Startups using low-price models to establish consumer • A communication channel only
base • A distribution channel to intermediaries
• Existing firms transfer existing prices to web • A direct sales channel to customers
• Any of the above
Customers have focus on price and often use price
comparison
Promotion Mix
Communication Process
AIDA Model
Sales Promotion
Sales Promotion
http://articles.economictimes.indiatimes.
com/2011-02-
28/news/28641938_1_harpic-reckitt-
benckiser-dettol
Objectives of Sales promotion
1. Product interest: To increase the awareness about the product

 A direct case would be POS displays
2. Trial: To promote first trial of a product
 Sampling would be a nice example
3. Purchase: To drive sales directly
 Premiums(BOGOF) are meant for that
Sales Promotion: Illustrative case
Campaign objective: 20% sales increase and brand salience

Profit(after campaign): Up by 37%
1. Cricket was at it’s peak in India
Why cricket
2. Biscuit sales was falling @30% then
World cup?
3. 85% of Britannia sales was by biscuits
Public Relation
Ad Analysis
• http://www.youtube.com/watch?v=oIeOSaP-
Lgo
• http://www.lifebuoy.com/socialmission/help-
childreach5/helpchild
• See the “beauty”
– http://lighthouseinsights.in/lifebuoy-help-a-child-
reach-5-social-media-campaign.html
The film won a silver lion at Cannes 2013.
Ad Analysis
• Another View
– http://www.business-
standard.com/article/companies/a-new-
battleground-112121200202_1.html
– http://dealspitara.com/discount/health-
beauty/lifebuoy-color-changing-hand-wash/
– http://www.firstpost.com/photos/images-
lifebuoys-innovative-ad-at-maha-kumbh-is-true-
innovation-618541.html
5M’s of Advertising
Mission
Measurement Money
Media Message
Source: KKKJ, Chapter 11

Closer look….
Integrated Marketing Communication
Why is branding necessary?
Revisiting the basics
Brand is a name, term, sign, Role of brands
symbol, design or a combination of • To identify the source or maker
them, intended to identify the
goods or services of one seller or of the product
group of sellers and to differentiate • To assign responsibility for its
them from those of competitors
……… performance to a particular
manufacturer
• It is a promise/ a reputation
• Greater loyalty
• It is a promise to deliver
differentiated benefits • More inelastic customer
• To position itself in your response to price increase
consideration set and be the
• Increased marketing
chosen product from that set
communication effectiveness
Brand Management
Strategic brand management has 4 steps:
• Identifying and establishing brand positioning

• Planning and implementing brand marketing Building
• Measuring and interpreting brand performance Measuring
• Growing and sustaining brand value Managing

Brand Positioning
• Launched as a balm for relieving joint
pains
• Repositioned the brand as the “backache
specialist that addresses a common
problem that housewives frequently face
“Aah se aha tak”
“ek minute moov ki malish”
Positioned as a
toothbrush that offer
several attributes such
Positioned as Dentists as multi leveled
choice of toothbrush bristles, tongue
“The brand more dentists cleaner etc at a low
use themselves price
worldwide" “Smart Clean sirf das
rupey mein"

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IMC-4 Session7-8 Sambhalpur

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How are you feeling now ?

Framework for business

Level 2 – Tide Plus target is urban (Town Class)

On top of these, we form psychographic profiles:

Outsiders Showboaters Slacker Socialite Experiencer Enthusiast

25-30: Entrenched 30 Plus: Experienced

Accessible •Segments can be effectively

Substantial •Segments are large or profitable

•Effective programs can be

1. Identify 3. Evaluate 5. Identify

Gaps in the product line

Research has shown that…

Keeping up with competition

To be translated into Product Concept

• Communicability and believability

Capturing marketing insights:

Segment the market and identify target group (STP)

Design marketing channels

Design a communication campaign

• LPA – Latitude of Price Acceptance

• Reference prices keep changing on account of

Advertising Role of sales Role of

Selling Style Channel

Allows for long-tail economics

2 main approaches Global reach, and can serve multiple purposes

1. Product interest: To increase the awareness about the product

Campaign objective: 20% sales increase and brand salience

Source: KKKJ, Chapter 11

• Identifying and establishing brand positioning

• Measuring and interpreting brand performance Measuring

• Growing and sustaining brand value Managing

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