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A

RESEARCH PROJECT REPORT
ON

“CREATING DIFFERENTIATION THROUGH
ADVERTISEMENT AND SALES-PROMOTION IN
FMCG”

JP School of Business, Meerut
(AFFLIATED TO UTTAR PRADESH TECHNIAL UNIVERSITY, LUCKNOW)

ACADEMIC SESSION
2009-2011

UNDER THE GUIDANCE OF:
Mr
...
Lecturer, MBA Dept
...
0960970042

Page- 1-

DECLARATION

I, Reshu Maheshwari do hereby declare that the Research Project Report submitted by
me for the partial fulfillment of the requirement for the MBA of JP School of Business,
Meerut
...

I take this opportunity to express my gratitude to the Director Dr
...
Lecturer Mr
...
His inputs and suggestions were a source of enlightenment
...
I am indebted to him for all kinds
of support, insights, and valuable inputs and above all his precious time from time to time
which helped me throughout
...

Last but not the least I would like to acknowledge my family and all my friends who were
of great support and in successful compilation of the project report
...


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TABLE OF CONTENT
Particulars

Page No
...
6 billion in 2003 to US$ 33
...
Penetration level as well as per capita consumption in most product categories like
jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market
potential
...
Growth is also likely to come from consumer 'upgrading' in the matured
product categories
...

Rapid urbanization, increased literacy and rising per capita income, have all caused rapid
growth and change in demand patterns, leading to an explosion of new opportunities
...
Aspiration levels in this age group have been fuelled by
greater media exposure, unleashing a laten demand with more money and a new mindset
...
Companies spend
considerable time in planning such activities
...

Retailers stated that role of word of mouth and television advertising was very important in
providing information inputs to the consumers regarding sales promotion activities
...

The research concludes with the discussion of the results, managerial implications
limitation of the study and future research directions
...
ABOUT THE DISSERTATION

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INTRODUCTION
Advertisements convey brand differentiation and this may be important in several
categories, which consist of several brands
...

Differentiation with which consumers cannot “connect” may have a negative implication
and if a brand “connects” consumers with its differentiation, it is likely to also differentiate
itself in terms of getting identified with the consumer
...
It is also essential that a good “differentiation proposition” result in a
positive word-of-mouth
...
This is a
complex situation where differentiation decides the growth of the brand and the perceived
difference between the offerings
...
Fairness cream is a category in which the benefit is the fairness
of the complexion
...

Herbal ingredients are becoming popular with consumers in several categories and personal
care in India has a strong tradition of herbal care
...
The interesting fact is the differentiation being conveyed by advertising
...

Estimates based on China's current per capita Consumption, the Indian FMCG market is
set to treble from US$ 11
...
4 billion in 2015
...

Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc
in India is low
...

Low penetration indicates the existence of unsaturated markets, which are likely to expand
as the income levels rise
...
Moreover, per capita consumption in most of the
FMCG categories (including the high penetration categories) in India is low as compared to
both the developed markets and other emerging economies
...
Growth is also likely to come
from consumer "upgrading", especially in the matured product
categories

Page- 9-

RESEARCH OBJECTIVES:
The main objectives of the study are:

1
...
To assess how consumers differentiate the products based on advertisements
3
...
To study consumer perceptions regarding various schemes in this category and
responses toward them
...
To study the various methods of differentiation
...
To analyze the methodology adopted by companies to target end consumers
...
To address basic business questions like:



Do companies have the right product/service to offer?



How companies reach their customers?



How the buying power can be created?

8
...
LITERATURE REVIEW

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LITERARATURE REVIEW
Impact of Effective Advertisement on Consumer Attitude Dr
...
R
...

If you want to read the article it is present in the appendix
...

Advertising, being dynamic, changes with changing methods of distribution and
consumption
...
Thus,
the impact leads to cultural and social changes to a great extent
...
Advertising is the most economical means by which a manufacturer or
an Institutional body can communicate to an audience whether to sell a product or promote
a cause of social welfare
...
They are importance of claim, believable, uniqueness and
repetition
...
Some of the situations are as follows:· When there is a favorable primary demand of particular product
...

· When mass market is penetrated
...
The following steps on the part of the consumer may ensure that
the advertisements are on the right track
...

· Listening and observing the contents of the advertisements in full
...

· Comparing the advertisements of similar products
...

· Assessing the level of utility of the product individually
...

In the article Dr
...


Techniques of advertising for Fast Moving Consumer Goods
Dr
...
HK Bedi- Professor, Dean, Department of Management Studies,
National Law University, Jodhpur

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This article shows how an advertiser can use different techniques of advertisements to show
FMCG products
...
Therefore, it is a missing link between brand
attributes and the customer perception, between product features and need fulfillment,

...

Comparative ads- the advertiser compares the 2 brands of the same product category
...
They have used the same story
but both have them had a different approach
...

Health and Hygiene ads- these ads show that the product is taking care of the consumer's
health
...
What does the product do?
How does it help you? The ad tells you all
...


Lifestyle ads- Another way to
...


Humorous ads- Humor in the advertisement is normally kept in order to create a light,
jovial and likely kind of an atmosphere

Demographic ads- these ads are meant for different segments based on age, sex etc
...
It is also targeted indirectly towards the mother
...
Packaging
...
E
...
Mango, Pineapple, Orange,
Mixed Fruit Jete
...
e
...
They claim
that unlike other juices, which have preservatives in them, these products are without
preservatives
...


Price ads- Marketers also lure the customers by showing in an advertisement that a
product is available at a lesser price without any compromise on the standard
...


Celebrity ads- Celebrities are mainly used in the advertisement either to lure the rural
people in buying a particular product or in forcing the young generation to buy the
products
...
,{t is also used in portraying that a
particular product is best in--qtJality because a person who is also very well known in
his/her field endorses it
...


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I
...
6 billion in 2003 to US$ 33
...
The
dominance of Indian markets by unbranded products, change in eating habits and the
increased affordability of the growing Indian population presents an opportunity to makers
of branded products, who can convert
consumers to branded products
...
The contrast is particularly striking between the rural and urban segments the average consumption by rural households is much lower than their urban counterparts
...
This provides an excellent opportunity for the industry players in

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the form of a vastly untapped market
...
A rise in per capita consumption, with
improvement in incomes and affordability and change in tastes and preferences, is further
expected to boost FMCG demand
...


 Mushrooming of regional brands


Nirma enters and changes the focus to ‘Value for Money’ in the 70’s



Post liberalization, Jyothi Laboratories, ‘Ghari’ Detergent and ‘Anchor’
toothpaste giving the nation-wide brands a run for their money
...
Distribution networks are being beefed
Supply

up to penetrate the rural areas
...

Huge investments in promoting brands, setting up distribution

Barriers to Entry

networks and intense competition, but the sector is not capital
intensive
...
Manufacturing is largely outsourced
...
g
...

Competition is faced from both domestic, MNCs and also from
Competition

cheaper imports, which are increasingly visible in urban markets
...


FORECAST 2010:


Rural and semi-urban
 128 million population thrice the urban


Market size growth from 48k to 100k Crores (Growth of 50% at 10%CAGR)



Increase penetration from the current less than 1%



Problems in the rural sector
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

Low per capita disposable incomes



Large number of daily wage earners



Acute dependence on vagaries of monsoon



Seasonal consumption



Poor infrastructure – roads and power supply

 Urban


Market 16
...
UNDERSTANDING DIFFRENTIATION

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UNDERSTANDING DIFFERENTIATION:
Differentiation is the process of adding a set of meaningful and valued differences that
distinguish a company's offering from those of its competitors
...
Important: the difference delivers a highly valued benefit to a sufficient number of
buyers
2
...
Superior: the difference is a better way of obtaining a benefit
4
...
Affordable: the buyer can afford to pay for the difference

6
...
More importantly, price cuts or sales
promotion by themselves do not seem to have done much for brands in terms of sustaining
brand loyalty
...
But over a period of time, a brand's
value may get diluted in consumers' psyche, and will eventually lose a strong base of
consumers
...


Product differentiation
If the products are differentiated in their characteristics and this difference is perceivable,
there are chances of brand loyalty being formed based on satisfaction with greater
performance or fit of product with needs
...
Functional benefits would be specific tangible features of the product
whereas symbolic benefits would be intangibles such as brand personality and `hedonistic'
value of purchase
...
Price-led loyalty is practised by supermarkets, airline companies and FMCG
brands, which come out with frequent sales promotions based on freebies
...
Price-led loyalty has to be carefully considered with other marketing
mix elements and the consumer should never perceive dilution, especially in low-priced

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bands
...

Branding activity
If the category is organized and there is branding activity, there will be greater loyalty than
there would have been if the category were unorganized
...
Branding activity
in this context refers to creating strong associations which will influence the consumers not
only with regard to functional attributes but also with symbolism
...

Branding activities in a broad sense could range from advertising to sales promotion and
public relations involving several aspects
...
The Indian context
The following were the observations from the literature survey and the examples chosen
from the Indian context
...
Hence there will be strong behavioural loyalty in the segment and
only weak attitudinal loyalty
...

There is a moderate level of symbolic and functional differentiation which has been
exploited by strong brands to build a loyal following
...
These brands have probably built strong attitudinal loyalty through their brand
personality and other brand building efforts
...
As creating
attitudinal loyalty based on functional differentiation is difficult, symbolic differentiation is
the key
...

The factors discussed cannot be treated in isolation: they are to provide a synergy to result
in brand loyalty
...


Local challengers
Some of the most successful FMCG brands in 2002 came, not from the stables of a
Hindustan Lever and a Colgate, but from obscure regional players such as Kaleesuwari
Refineries, Parakh Foods, Anchor Switchboards and Kanpur Detergents
...

Yes, the comparison is unfair, as the local brands had a minuscule base to start with
...
Traditionally, large FMCG
categories in India have been dominated by just one or two players, who rule the roost by
dint of their sheer financial muscle and distribution reach
...
And how!

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Aggressive pricing
In the edible oils market, as national players were forced to hike their selling prices in
response to rising commodity prices, both Gemini and Gold Winner have used aggressive
pricing to woo consumers away from the national brands
...
The limited differentiation in grocery and the flexibility offered by a restricted area
of operations have stood these companies in good stead
...
Though none of these
companies can match the market leaders in adspend, they have used focused regional and
local advertising to draw consumers' attention to their brands
...


Banking on `power' brands
While the local brands have been adding to their brand portfolios, the market leaders have
largely stayed off new product launches
...
The company phased out brands such as Sunlight in detergents, and Jai in toilet
soaps, so as to focus better on its 30 power brands
...

In fact, HUL's "power" brand strategy has found a few followers in the FMCG market, with
companies such as Godrej Consumer also announcing plans to focus on a clutch of key
brands
...

For most FMCG companies, advertising and promotion spends in 2002 grew faster than
their sales
...
The slew of "100 gm free for every 150 gm" offers in toothpastes
and the series of promos on the 2 kg packs of premium detergents were both intended to
induce existing consumers of a product to pep up their usage of the brand
...
The low-priced Chocostik, a liquid
chocolate in a small-sized pack, launched by Nestle India, has helped pep up the company's
topline and is now a large contributor to the company's revenues
...


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Shampoos have been among the few FMCG categories to register a positive growth rate in
2002, and growth in this category has been driven mainly by sachet packs and by scaleddown 50 ml bottles priced at less than Rs 10
...
At one
level, it has made sure that the dominant players in the market no longer enjoy unlimited
pricing power, as they have in the past
...
At
another level, the emergence of the regional challengers has made sure that consumers of
FMCG products have a few more choices in their purchases of essentials
...
The difference is how the particular product is sold and more importantly, how is it
distributed
...
We have an
extremely evolved distribution mechanism for most products
...
Depending on the number, the price of the product and the
complexity of the selling process, they may vary from direct selling to selling through a
channel that may have as many as four levels between the manufacturer and the consumer
...

Most FMCG (fast moving consumer goods) products are not hard-sold to the end
consumers
...
The sell-in happens to the trade i
...
to various members of the distribution
channel - the Carrying&Forwarding/Super-stockist, the distributor, the wholesaler and most

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importantly the retailer, who is the interface with the end-consumer
...

A large MNC in the FMCG industry may be covering as many as 1 million outlets across
the country with the help of thousands of distributors
...
Factoring in the vagaries of operating in more than 25 different
states, each with its own sales tax complexities, different consumer needs, differences in the
distribution structure, not forgetting differing octroi structures within a state, distribution is
extremely complex in India
...


Page- 34-

I
...
UNDERSTANDING SALES- PROMOTION
III
...
PROBLEMS FACED BY MARKETERS

Page- 35-

UNDERSTANDING ADVERTISEMENTS
Whether it is a serial in a regional satellite channel or a One Day International cricket
match, there is a non-stop stream of advertisements, which clutter the commercial break
...
There are ads for children,
housewives and youth
...
8000 Crores per
annum in the recent times and the proliferation of brands across categories, there is a strong
need to consider the effectiveness of these advertisements
...
These non-advertising alternatives may also enable a brand to
create and sustain consistent associations, which may be desirable in terms of long-term
implications
...
There may be several objectives of advertising and a promotional mix
could be used in an innovative manner to address each of these objectives depending on the
product category and target

segment
...
This would depend on whether the product is a consumable or a
durable
...
Itch Guard, a new branded offering for minor skin problems, used
a simple humorous TV commercial to convey the concept
...
A brand in this situation is likely to also
benefit from point of purchase material at pharmacy outlets, departmental stores and even
kirana (grocery) type of shops
...
In this example, a typical brand personality need not be built at
least before the benefit is sold to the consumer and hence all promotional efforts should be
directed at conveying the benefit and creating a brand association with the category itself
(as it is a pioneering brand in the category)
...

Kissan Bistix in contrast is a unique offering, which is aimed at children who have to
initially make a change in their habits regarding the consumption of this offering (should be
eaten with a biscuit stick after it is dipped in chocolate/any other side dish flavour which is
a part of the package)
...
5 and this would be
associated with low involvement
...
5 level
...
Innovative contests built around popular
hobbies may enable the brand not only to create excitement but also sustain the interest over
a longer period of time
...
Acceptance of an
offering like this requires a longer time interval and an innovative approach towards
promotion rather than typical sales promotion or mass advertising or display at the counter

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of retail outlets
...

Creating awareness in a durable category (even if the consumers are familiar with the
category) requires a different approach
...
LG, Samsung, Santro and Whirlpool are brands
that have been successful but less than a decade old in the Indian context
...
New brands
depend on innovative features to create awareness and this happens both by advertising and
positive word-of-mouth
...
This approach could
be compared with the advertising blitzkreig of several new brands of cars
...
The
brand has also been selective in its market launch and this adds to the “expectation
excitement” for prospective consumers in other markets to enhance the impact of word-ofmouth
...
The
product may be a good one but the initial concept selling plays a vital role in the diffusion
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of the product
...
TV could be used for creating awareness of the category but
print advertisements are required to address the differing perceptions of consumers about
the risks and value associated with a new offering
...
How should the offering be positioned especially when in
the urban context gas stoves have a high degree of penetration? Would the device be useful
for cooking menu other than rice? What is the perception of the target consumer? Or is it
worthwhile to position the offering effectively only as an occasion based household device?
How could demonstration be used to change the negative perception of consumers? Should
all retail outlets be used or only specific retail outlets in an area be used? How does the
usage cost compare with substitutes?
As it can be observed, these dimensions require a mix of promotional decisions
...
Primary advertising sells the concept while secondary advertising
highlights the features of the brand
...
There is a need to consider the product/market situation
before such discussions are taken
...
When washing
machines were introduced in India (even now the penetration of washing machines is not
high) fifteen years back, Videocon used a very effective primary advertising to sell the
concept and create awareness about the category
...


Later

competitive

brands

were

launched

in

the

category
...
The category of quartz watches provides such an example
...
Titan, which has a huge chunk of the category, took a major initiative not only
to build its brand but also to sell the concept of quartz watches
...
In a situation like this, the pioneering brand or any
brand, which builds itself quickly stands to gain
...

Besides, such quick diffusion is also enhanced by the fact that the category is a necessity
item rather than a luxury
...
Hence for a national brand, mass advertising is a pre-requisite, provided it is
supported by the other elements of the marketing mix
...
UNDERSTANDING SALES PROMOTION
Definition:
For the purpose of this study, following definitions of sales promotion were kept in mind
...
”
7Roger Strang has given a more simplistic definition i
...
“sales promotions are short-term
incentives to encourage purchase or sales of a product or service
...


Following findings and inferences were derived:

1
...
8-15 for 75
gms
...
This was closely followed by 11 schemes (40%) in premium
segment (> Rs
...
Thus it could be inferred that companies were trying to
upgrade consumers of economy/popular brands to popular/premium soap brands
respectively
...
No
such scheme was offered by any brand in the economy segment
...
8, it might not be possible for the
companies to offer this type of premium promotion
...


Premium (Free Gift) Offers
Six out of 13 premium offers were a part of the companies own portfolio e
...
on buying 2
Dettol soaps, a Dettol Talc, 18 grams worth Rs
...

1
...
5
...


Premium (Free Gifts):
• To reward and retain existing loyal customers and to enhance brand image
through interactions/associations
...

• To encourage brand switching amongst deal prone consumers through
innovative gifts
...
g
...


Price-offs:
• Contrary to belief, premium soap brands were giving price offs (3 price off out
of 11 scheme announcements in this category )
...
g
...
45 for

100 gm) Rs
...
It could be inferred that frequent use of sales promotion
activities in premium segment might dilute the brand’s exclusivity, which
could lead to dissatisfaction and disillusionment among the regular users
...
The ratio varied from 0
...
00 among various brands
...
15 to
...
For example, in case of Mysore Sandal and
Palmolive Natural (premium soaps) the incentive ratio was
...
17 respectively
...

The highest incentive ratio in case of Fair and Lovely soap was an introductory offer
...
Instead
the company could have leveraged on its parent brand namely Fair & Lovely Cream which
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is well entrenched in the market
...


Perceptions about mass media announcements
Five out of six retailers viewed that whenever sales promotion scheme was announced on
TV, it created pull and they were more than willing to stock such brands
...
While Lux Gold Star which was heavily
promoted on T
...
is recalled even today
...


Handling Problems
Many a times retailers had to handle various sales promotion offers simultaneously in a
category and also across categories and there was no formal communication planning either
from the dealer or the company
...


Page- 44-

Reasons for switching brands:
This could be seen from Table below
...
Need for variety was the predominant reason
...


It was further found that consumers had positive disposition towards promoted brand
...

Recall of brands being promoted:
It could be seen from Table-7 below
...
This brand used TV advertisement heavily to announce sales promotion
offers
...
It could be
inferred that i) hard core loyals to a particular brand (eg
...
ii) Unless sales promotion
offers were properly communicated to the target audience, required impact might not be
created and iii) Unless promotional offers were of significant value to a consumer, it was
likely to get unnoticed and/or ignored
...
This indicates that when
27% showed willingness, and 10% consumers who were not sure, these groups might be
lured through innovative and lucrative sales promotion offer
...
4)
...

Eighty per cent of the respondents indicated that they would not continue
...
Thus, it could be inferred that promotions in this category (low involvement
products) might encourage trial and brand switching but not long term loyalty
...
Sixty-three per cent of the
respondents ranked price-offs as number one or two
...
a
...
It can be inferred that promotions were not leading to negative brand quality
perceptions
...


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3
...
While providing value to customers” and “to reinforce company image” were
ranked lowest
...

Corroborating findings from retailer and consumer perception studies, it is evident that
there was a matching of perceptions regarding nature of scheme (price offs as most
preferred type of scheme mentioned by consumers and retailers’ perceptions about
consumer preferences)
...
Such inputs from the retailers would be useful to companies
...
This was reinforced by the consumer survey which showed that
recall in case of heavily promoted schemes on TV was found to be very high
...
Thus both viewed that companies were
using sales promotion activities mainly to increase short term sales or encourage switching
or selling excess stock and not really to give value benefit or enhance/reinforce
brand/company image
...
Clearly this shows that managers need to invest into brand building exercise so that
his/her brand appears in the consideration set of the target consumers
...
Sales promotion should not
be used in isolation but need to be integrated with other tools and in line with the overall
positioning of the brand
...
Companies need to create sufficient awareness about sales promotion
schemes
through mass media in order to create awareness The role of retailer in influencing
consumer in brand choice decision in a toilet soap category was found to be insignificant
which also supports the above observations
...
Also the person going to the shop for the purchase of
soap is the final decision maker of the brand
...
With respect to nature
of scheme, the finding suggested that premium (free gift) was popular with companies
...
So it

is necessary that the

perceived value of a free gift has to be appealing and high for the target consumers
...
When the company is giving its own product free as
premium, it needs to ensure the quality of the product from it as it is likely to jeopardize the
image of both its products
...
What it implies is that companies need to use sales promotion synergistically and
communicate so that they provide value to the target audience and enhance brand
quality/image perceptions
...
Ensuring proper information flow
and devising checks and measures to reduce misappropriations and implementation flows
should be considered critical aspects for the success of sales promotion activities by the
companies
...

Through dealers and proper feedback mechanism, companies keep in touch with the
market
...
It can be seen that the
retailer and consumer perceptions matched with respect to preferences of schemes,
underlying motivations and role of mass media
...
Developing a system to tap such responses from time to time both at retailer and
consumer level would be helpful for planning future sales promotion activities
...


Page- 50-

Page- 51-

II
...

ASCI had taken action against 16 advertising campaigns by different companies, of which
seven were asked to withdraw, while nine were asked to modify for violation of the codes
...

Hindustan Lever's Clinic All Clear, which is now being endorsed by Bollywood couple
Bipasha Basu and John Abraham, was also on the list of defaulters
...
HUL had projected the shampoo as a solution to hair fall through its
tag-line baal girney ka sawaal hi nahi (no question of hair fall)
...


This time around, several FMCG companies have come under ASCI's (Advertising
Standards Council of India) scanner as complaints against their ads have been upheld by the
Consumer Complaints Council for the period between January and Marchthis year
...


Page- 52-

For Dabur India, it was its Dabur Red Toothpaste; its pack claimed `strong teeth
...
'
According to the complaint made by a member of the dental profession, the ingredients
declared on the pack are not scientifically and clinically proved to provide strong teeth
...
The TV
commercial has been discontinued
...

In the case of HUL, the radio commercials for Clinic All Clear Hair Defense claim "Baal
girne ka sawaal nahi (question of hair fall does not arise)" was looked upon favourably by
ASCI
...
The complaint made is about
the gross exaggeration of facts, said ASCI
...
The ads from radio
and hoardings have thus been withdrawn
...
The claim
being `as good as' is vague and ambiguous as it does not specify the parameters on which
Stayfree Secure Dry is considered equivalent to expensive napkins
...


Page- 53-

"As the claim relies on a survey conducted by TNS India, one needs to scrutinise the survey
design, methodology and questionnaire to check the validity of the survey, study the actual
findings and check whether the same reflects in conclusion," ASCI stated
...

For Colgate Palmolive (India), it was its Colgate Sensitive Toothbrush being positioned as
the Dentists' No
...

"In the absence of a notation in the advertisement on the source supporting this claim, the
advertiser is required to substantiate the claim," read the complaint
...


The study conducted in association with the assistance of Yahoo, MSN, Lycos, and AOL
combined a total of 200 FMCG online campaigns executed across Europe
...


The research methodology follows global industry standards set forth by Dynamic Logic
(1999) which surveys consumers in two categories; campaign exposed and non-exposed
...
The
full 'funnel' of branding metrics was surveyed; brands awareness, ad recall, message
association, brand favourability, and purchase

intent
...

Similarly to other categories, FMCG brands which advertised online had the highest impact
Page- 54-

across brand awareness (both aided and un-aided) and brand favorability in line with market
norms and mirroring similar research from the US
...
Hence FMCG branding metrics continue to increase with
additional

exposures
...
In order that product should get through the clutter it is believed that a
single selling message has to be repeated for a large number of times
...
And
hence instead of creating a consumer base it may drive away the potential customers as
against this, UCP by itself provides solutions to all the marketing problems poised by the
widely accepted USP approach
...
It eliminates
the problem from the roots rather than periodic trimming of the tree
...
Objectives:
Objective of the study was to find out finer points of developing bridge positioning
statement and how it can bridge the gap between the UCP and USP
...

A USP is that distinct and appealing idea that sets your business favorably apart from every
other generic competitor
...
Brands which had high success has USP=UCP
...
Thus, Bridge positioning statement helped to
bring brand come nearer to the customers
...
UCP and USP matching makes the

Page- 56-

brand recall better and the positioning statement in these cases can be called Bridge
Positioning
...
Today’s trying economic conditions have forced difficult decisions on
companies
...
During these difficult times, understanding what customers think on continuous
basis is critical for survival
...
Companies may have to change the USP to stay
contemporary and relevant
...
What companies need to understand is product’s UCP
...
Basically it aims at the core of the problem
...

If an Organization fails to recognize the customers’ perception then the initial surge of
customers would quickly come to a screeching halt and the brand would fade into obscurity
along with the organization
...
Following this with an excellent product/service and
customer support will leave an indelible mark on the existing customer’s memory, which
will create brand loyalty
...


Selection of the brand: Mountain Dew, a lemon drink, with the USP “The Spirit of
Adventure - Do the Dew” is marketed in India
...
This was reflected by
stagnant sales of Mountain Dew in the market
...

The study was to focus on UCP and USP of this product and how UCP if determined
through the study can improve sales through better brand recall and preference of doctors
...
Natrilix -SR was selected for this study
...
Identifying

the

USP:

After

selecting

brands,

the

USP

was

identified i
...
as promoted by the company from various sources like
Advertisement, POP, print ads, Sample catch cover and detailing folder
...
Identifying the UCP: As the important part of the research was to find out
the customer perception of the brands, it was accomplished by using
questionnaire approach

of

Research

Methodology
...
Formulating the UCP:A ranking technique was used to find the most
important customer perceptions for the brand
...


was

formulated
...
Inferences and conclusions were drawn based on
this survey
...


This is the core subject of the research and to substantiate the same, two surveys
were

conducted
...
So
basically the aim is to find how existing USP match consumers’ perception
about NatriliX-SR/ Mountain Dew, a lemon drink
...


Page- 59-

III
...
In FMCG products like tea, coffee and
detergents, “differentiation awareness” can be created by television advertising, but in
certain categories there may be a need to demonstrate the effectiveness of brands
...
A detergent or a washing machine,
which claims “low water consumption” has to demonstrate this claim at a retail outlet
especially given the fact that the quality of water varies across areas even in a specific
geographical region
...

In a certain situation, the company may have two offerings in a product-line and there is a
need to differentiate them clearly depending on the target segments involved
...
An added layer to the complexity is the same brand name
being used for the offerings
...
A brand like Fair and Lovely built over the years still has a strong
association with the category but under tremendous pressure from competitive brands and
the most important criteria which these brands is the herbal touch associated with them
...
Fair and Lovely had to launch its herbal

Page- 60-

variant (it used the same brand probably because of the brand equity built up over the
years)
...

The original version uses an aspiration route in which the brand’s ultimate benefit is
success through confidence
...
The herbal variant’s advertising has a strong focus on the
traditional product benefit - facial complexion that appeals to youth
...
From an explicit
benefit associated with the category (fairness) the advertising differentiation carries the
variants of the brand to a different plane of differentiation
...
Goodlass
Nerolac in its recent advertising campaign for decorative paints, which uses Amitabh
Bachchan, has a focus on imagery - joggers, housewives and children who have a positive
attitude towards the celebrity
...


Page- 61-

“An Empirical View of the Different Types of
Consumer Promotions in India”

Page- 62-

Expenditure on sales promotion by various marketing companies in India is estimated to
be Rs
...
Companies in an attempt to drive sales offer various kinds of consumer
promotions

from

price

offs,

extra

product,

freebies,

scratch

cards
...
In the year 2000, the number stood at 1,954
schemes(Financial Express, 2000)
...
One
dimension, which has been suggested to classify different promotions, is the price
versus non-price nature of the promotion

...
These promotions
focus on the reduced economic outlay required to obtain a good or service
...
Studies, which have compared
consumer response to different promotions, have followed this classification in
differentiating between types of promotion
...


Page- 63-

Table

Although a wide variety of price and non-price promotions are launched in the market,
most of the academic research on promotions has focused on price promotions, namely
price offs and coupon offers (Blattberg, Briesch and Fox, 1995)
...


Page- 64-

However very little academic theory or research has looked at how consumers
perceive and respond to such promotions
...
g
...


A first step towards researching different promotions is identification of the
range of different promotions launched in the market place
...
g
...
Finally, details about each type of promotion
are noted in order to highlight the different incentives offered by each type of
promotion
...
In total around 54 product categories were covered in the
study
...
The frequency of
promotion in these sectors is shown in Table 3
...
The Services sector accounts for the lowest number of
promotions
...
These are also product categories with the highest level
of market penetration (NCAER: Indian Market Demographic Report, 2002)
...
The most frequently promoted categories in the Services sector are
Fast Food Restaurants and Cellular Phone Service
...
The overall frequency of occurrence of these promotions as well as
frequency of occurrence in FMC,
...
This is followed in popularity by the
sweepstake promotion (11%), which in turn, followed by the extra product promotion
(8%) and the price off promotion (8%) in popularity
...
In case of Durables, the order of frequency of
promotions is the premium promotion followed by the sweepstake promotion followed
by the price off promotion
...
A detailed
analysis of each type of promotion is provided in the following section
...

Page- 67-

1
...
This promotion
requires the consumer to exchange an old product for a new one and get some benefit,
usually a price reduction
...
10,000 on the new car in exchange for an old car
...
In case of household durables, the scheme usually requires the consumer to
exchange an old model of a product (e
...
AC, refrigerator, music system, mixer grinder,
gas stove) to get a price reduction on the new model
...
Most
exchange schemes provide an incentive to purchase in the form of a price reduction
...

The purpose of the exchange scheme appears to be upgrade existing users of durable
products to newer and larger sized models of a product
...
Free Gift Offer
This promotion is popular across a range of product categories
...
For example, in case of a car
purchase, the consumer is offered a free product such as a music system or accessories
...
Often the product offered free is a complement to the original purchase
...


At times, the product offered as a free gift constitutes an upgrade to the original purchase
...
Or in case
of notebook computer/PC, the consumer is offered a Free Internet upgrade and 20 GB,
Web Camera, Printer, Britannica CDs, software
...
Here the free products appear to be ‘use complements’ to the original product
...
g
...
For kitchen products, the free
product are items used in the kitchen such as plastic containers, metal spoon, tawa, non
stick pan, idli stand, serving bowl, table mat and OTG
...
In the skin care segment, the free products are other personal care items such
as soap, body lotion, shampoo sachet, shaving cream and toothpaste
...


At other time the free product may be totally unrelated to the original purchase
...
It is possible that, in such, cases, the products through unrelated are targeted to
the same segment of consumers
...
For example, in case of health drinks, the free product are items such as
cricket bat, zoom ball, story book, pencil box, biscuits, binoculars, toy bike, cricket set,
football and trendy wristwatch which are valued by children
...


In some cases, the free gift offered along with the purchase is another product variant
offered by the company
...
In case of spices, the
consumer is offered Kashmiri mirch along with purchase of the regular spices
...
The consumer has to make a certain value of purchase before he is entitled to
the free gift
...
In most cases,
the price of the free gift is not mentioned
...
g
...


3
...
It
ususaly involves a lucky draw or a scratch card based on which the winners are decided
...
The first
Page- 70-

type of prize is a trip to a foreign location e
...
Paris, London, Thailand, Singapore or
Malaysia
...
The second type of prize are durable products such as Bike, Car, Watch,
Washing Machine, Television, Refrigerator, DVD, Mobile Phone, Cordless phone, PC,
Microwave, Camera, Sunglasses, Gold Jewellery, Gold Coin
...
In some cases, the details of the prize on the sweepstake promotion is
not specified and is stated as ‘prizes worth Rs
...
’

4
...
The promotional benefit is usually in the form of money saved as
a result of buying two ore more products at the same time
...
For example, in case of bath soaps and detergent cakes, this
promotion requires the consumer to buy three bath soaps/detergent cakes and get one
soap/detergent cake free
...
This promotion seems to be popular in
categories where the extra units of the product offered on the promotion can be stored for
future consumption
...
For example in case of computer printers, this scheme

Page- 71-

requires the consumer to buy a printer and scanner together and get a price reduction
...
For example the scheme requires the
consumer to buy AC and refrigerator or AC and microwave of the same brand and avail a
price reduction
...
This promotion is seen in case of Fast Food Restaurants as well where the
consumer is required to buy a pizza, coke mobile and garlic bread and get a saving on the
combination purchase
...

5
...
In case of Fast Food
restaurant, this promotion requires the consumer to fill up a coupon and get a chance to
meet a film star such as Hrithik Roshan
...
In
other product categories, the prizes offered on this promotion are similar to those on the
sweepstake promotion
...


5
...
There are
no extra product promotions seen in the durables product category
...
In case of toothpaste the
promotion requires the consumer to buy one toothpaste and get the second toothpaste
free
...
This promotion is also seen in the Services sector
...
In case of fast Food restaurants, the promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
...
One frequent promotion in
the consumer durable category is the 0% finance scheme for purchase of two wheelers,
notebook/PCs, refrigerator, music system, television, microwave oven, 2 wheeler
...
In case of fans, this sort of promotion requires the consumer to
purchase 3 fans and pay Rs
...
480
...
40 and get a free camera worth Rs
...
In case of health drinks, the promotion requires the consumer to pay Rs
...

A variant of this promotion is another promotion, which requires an investment of effort
rather than money from the consumer
...
1 and get a Britannia biscuit pack free along with the tea pack
...
1 to get a
pack of salt
...
For example, a soft drink
promotion requires the consumer to collect crowns and put in some money to get a price
discount on the soft drink
...
In case of chocolates, the promotion requires a consumer to exchange empty
chocolate wrappers to get movie tickets or bunny stickers free
...
RESEARCH METHODOLOGY

Page- 75-

RESEARCH METHODOLOGY
Need Identification:
Establishing need for market scan

Defining the Problem

Establishing Research Objective

Defining Methodology

Data Collection
Secondary
Data






Magazines and journals
Libraries
...
Retailers
2
...

In order to address the above questions an exploratory study was conducted
...
In order to address above mentioned objectives (i)
study of secondary sources was carried out, 10(ii) in-depth interview of six retailers was
undertaken and 11(iii) structured questionnaire was designed to seek consumer responses
...
Six retailers
ranging from small kirana store to supermarket were approached
...
The respondents for consumer study were postgraduate students in
the age group of 19-24 belonging to middle and upper middle and upper class
...
They were residing in hostel or as PG hence sole decisionmakers for this category
...


Scope and Limitations:
The geographical scope of the study was restricted to the MEERUT city due to time and
resource constraints
...
Focus being mainly on in-depth probing, the
generalizations drawn are only indicative and not conclusive
...


After the survey (250 samples) the population understands the soap by its brands
regarded with quality
...


II 45% known by the quality of the soap
...


IV 15% known by the types of the soaps
...
Mostly consumer uses
...


Page- 80-

3
...


All the individuals preferred to change new brand of the soap
...


The factors which make the consumer to purchase the soap as rated
...


Parent suggestion 35%

II
...
V
...
V
...


After the survey of 250 samples I analyse that large family uses-
...


HUL 45%

II
...


In the premium segmentation of the soap the rich people uses-

I
...


Dove 55%

III

Camey 10%

IV

Doy 5%

60%
50%
40%

Pears
Dove
Camey
Doy

30%
20%
10%
0%
1

In the premium segmentation of soap the rich people uses Pears 30%, Dove 55%, Camey
10% and Doy 5 %
...
RECOMMENDATIONS AND SUGGESTIONS
II
...
RECOMMENDATIONS
The word "Recommendation" is self-explanatory
...

For e
...
If it is asked to suggest on what the company should do to improve it frcfm its
present position? We find lots of suggestions floating
...

1
...

2: Effective advertising is necessary to confirm the public about the product at the right time
through the right medium
...
4
...
It should not mislead
the consumers
...
What it promises must be there in the

4
...
It should also be
creative and focus on 1 or 2 points
...


Page- 87-

Importance of Claim:
The most important factor determining the effectiveness of an advertisement is the
importance / of claim made in it, Many advertisements make important claims
...
If a buyer gives importance for quality,
there is no point in speaking about the cheap price, similarly if cheap price is important the
advertisement should highlight only that
...
e
...

Each advertisement must make a strong factual claim to pull the consumer into the store to
buy
...
This can be incorporated in many ways
...
to quote facts and figures about tests proving your claim
...
S0Q1etimes advertisement
given in prestigious magazines is believed by-the readers
...

Uniqueness draws attention
...
It is a 74

Page- 88-

mistake to depend entirely on uniqueness
...
Typically advertisements whose major objective is to gain brand recognition
and acceptance rather than gaining conviction or buying action rely on uniqueness
...
It is better to have a long series of
small advertisement than one extremely long advertisement
...
Naturally, the more times an advertisement is Iun, the more likely it is that any
person has seen one of the advertisements recently
...
In fact, an advertisement is better read
upon repeating, certainly repetition lowers advertisement costs
...
Product superiority married with a favorable pricevalue equation will form the basis of winning initiatives in the coming years
...

Consistently supporting those facing highest competitive pressure with above the line
spends while sustaining momentum on stable brands with tactical activities in key markets
to get incremental sales
...
From the sample size of 100 samples it is found that the Brand is well positioned in the
minds of customers because 77% of the respondent’s preference is Big Bazaar for their
shopping
...
Among 100 respondents, 23% of people told that 1st they came to know through T
V advertisement and 34% of people told that through hoardings 31% of them told
that through news paper and finally 12% of them highly agree that through bus
painting
...
Among the 100 respondents, 87% of them told that they are aware of promotional
activities of big bazaar
...

V
...


Among 100 respondent 43% of them agree that offers is the most emerging factor
influencing purchase decision and only 11% of them told that service 21% of told
that quality and finally 25% of them told that effective advertisement is responsible
for the purchase decision
...
Among 100 respondent 77% of them told that promotional activities of big bazaar
gives clear message and 23% of them told that they did not understood
...
Among 100 respondent 98% of people interest to advise others in future shopping
and only 2% of them not interest to advice
...
When the
claims of an advertisement correspond with the features of a product purchased as a
consequence of such advertisement, the advertisement is bound to create a positive attitude
among the Consumers in the long run
...
It is therefore essentials that an
advertisement aims to create faith and goodwill in the minds of consumer about the product
featured by conforming to the core principles of believability, uniqueness, reputation and
reasonable claims
...
Repetition, therefore, is
a solution for many of the problems that marketers face while trying to generate sales and
favorable response
...
Innovation
and creativity are pillars of great advertising strategies, but equally important are the content
and delivery of the advertisement
...
The general awareness of the consumers is on
the increase, because of many factors like urbanization, better transportation, developments
in information technology, media, etc and the average consumer today is more concerned
about the value of his money and time
...
We can say that the advertisers use these different
means of advertising in order to lure the customers to buy their products
...
Instead, multiple aspects of
advertising are being used to make sure that the consumers buy the respective company's
product
...


Every advertisement has some multiplier effect which gives a greater benefit with respect
to/ the amount spent
...

An attempt is made to identify the level of awareness among the respondents towards TV
advertising
...
The celebrity
endorsement is also considered to be an important part of advertisements to make them
more creative and innovative in their reach to the consumers and their attempt to capture
their attention
...

This highlights the role the TV commercials play in moulding the buyer behavior
...


2) Almost half of the segment of respondents likes to watch ads regularly
...
It is capable of
attracting attention immediately
...
This is because of “evocation of experience" i
...
:

4) Brand preference is considered to be one of the prerequisite for brand :
salience-to create the Top of the Mind Brand Awareness
...
;
Advertising works by reinforcing Brand preference for mature brands
...
All the rest of them think that they are either sometimes deceptive or mostly
deceptive
...
They feel models are familiar and their presence is reassuring
...
Celebrity endorsement is generally preferred for such products as soft drinks, cars,
suitings, premium range products and luxurious items
...
This is because the people are not able to conform the
exaggeration shown in the respect of product benefits with their own picture of reality
...
They could also immediately relate the celebrities they have seen in the
respective ads
...
This helps TV commercials to gain advantage over other
medias
...
This is to make the consumer more conscious and attract towards the product
...
Product
differentiation should be strong enough to create a wide gap between two brands
...
This is what is
happening in FMGC sector especially in soap industry, where the customer is not able to
differentiate between two soaps
...
As the product differentiation technique does not create a wider gap between one
brand and the other, customer loyalty is getting eroded
...
This `bridge positioning’ can
lead to long-term relationship with the customer
...
Companies should change the
USP to stay contemporary and relevant
...

UCP is a culmination of a multitude of information that the consumer receives from various
channels
...

UCP is also a result of the ‘product experience’
...

A company can determine its UCP using simple tools like Questionnaire Technique, Focus
Group Discussion, Free Association Technique and Value Association Technique
...

How using a particular product solves a problem or improves an outcome
...

These benefits are also a strong part of the process that leads to formation of the UCP
...
Therefore the question arises
regarding matching the USP with the UCP
...
But what are the options
available for the brand manager if there are indeed gaps between the USP and the UCP?
Since UCP is formed over the years and has its roots in factors beyond the immediate
control of the company, the company should try and align the USP with the existing UCP
...
Under which age group do you fall?
Below 15 ( ) 15 - 25 ( ) 25 – 35( ) 3 5 - 4 5 ( ) Above 45 ( )
2
...
Which cola drink ad did u see recently and when?
4
...
What do u find interesting in' an ad?
6
...
On a scale of 1 to 5, Rate the quality of advertisement of the following cola drinks: Pepsi
 Coca cola
 Thums up

Page- 100-

QUESTIONNAIRE FOR CHOCOLATES
Sample of questionnaire for market research:
Name:
------------------------Address:
Occupation: _________ Sex
Male ( ) Female ( )
1
...
When you think of chocolates which Brand comes to your mind?

3
...
Does an advertisement influence your purchase decision?


Yes ( )



No ( )

5
...
Whose advertisements/campaigns do you like the most?

...
)
7
...
Under which age group do you fall?
Below 15 ( ) 15 - 25 ( ) 25 – 35() , 35 - 45 ( ),Above 45 ( )
2
...
Which Ketchup ad did u see recently and when?
4
...
What do u find interesting in an ad?
6
...
On a scale of 1 to 5 , rate the quality of advertisement of the following ketchups: Maggi
 Heinz
 Kissan

Page- 102-

QUESTIONNAIRE FOR FAIRNESS CREAMS
Sample of questionnaire for market research:
Name:
Address: _______________________
Occupation: __________ Sex
Male ( ) Female ( )
1
...
When you think of Fairness Creams which Brand comes to your mind?
3
...
Does an advertisement influence your purchase decision?


Yes ( )



No ( )

5
...

6
...
On a scale of 1 to 5 , rate the quality of advertisement of the following FAirness creams
 Fair and lovely
 FAirever
 FAirone
 Others

Page- 103-

QUESTIONNAIRE FOR DETERGENTS
Sample of questionnaire for market research:
Name: _________________________
Address: _______________________
Occupation: _________ Sex
Male ( ) Female ( )
1
...
When you think of Detergents, which Brand comes to your mind?

5
...
Does an advertisement influen~e~Nour purchase decision?


Yes ( )



No ( )

5
...
Whose advertisements/campaigns do you like the most?
Ariel ( ) Surf Excel ( ) Tide ( ) Wheel ( ) others ( ) please Specify______)
7
...


Market Management

Philip Kotler
...


Consumer Behavior

Schiff man & Kaunuk

3
...
R
...
linkinghub
...
com
www
...
com

Page- 105-



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