October 2012MARkezine    ezineMarketing magazine of School of Inspired Leadership                                         ...
October 2012TEAM MARKezine s DoddleDear Readers,With a long battle won at last, the government has been able to allow FDIi...
October 2012One step in the right direction is followed by more. The news thatCompanies Bill 2011 will make CSR mandatory ...
Contents                                                                                                                  ...
FMCGIN RURAL INDIA     October 2012Sarvesh PingulkarBusiness Leadership ProgramWhat are FMCG goods?               Care, Ma...
October 2012Hence, the rural market,           The important growthpresent at the bottom of the       drivers for Indian F...
October 2012Impact of Rural FMCG             FMCG Industry - India 2012                                 (in Billion Rs.) _...
October 2012  ASSOCHAM, Companies like                                                                                    ...
October 2012total growth rate of about 8%.     recently announced has a cut ofThe Indian rural market with its   4% in exc...
October 2012for small scale industries (SSI).   addition to easy availability ofThere is a continuous growth in     raw ma...
October 2012players. 50% of the market is      HUL is a major establishedcaptured by unorganized            player in rura...
October 2012to buy products and then sell     this initiative, HUL has beenthe products door-to-door and     successful in...
October 2012specific partnerships with theleaders in the respective fields,in addition to ITCs ownexpertise. While the far...
October 2012                                 Creating Buying Power                                 • Access to credit     ...
The Dirty Picture In FMCG                                                          October 2012 Kushagra Jhalini Human Res...
October 2012campaign, which seemed almost      spellbound! Hindustan Unileverubiquitous as the company          certainly ...
The “Butterfly Consumers”                                   of the FMCG sector                                             ...
October 2012Therefore, the focus of most ofthe FMCG companies hasshifted to creating more ofconsumer engagement,involving ...
October 2012would, of course, discuss this       Hundreds of birds will sing,with many of her friends. She is     while, d...
October 2012retaining the existing customer.    bit too far.If one organization is not                                    ...
4P Unleashed Dove Soap:                               Movement of Self Esteem                                             ...
O tbr 02                                          co e 2 1f m i c mp t o sa diasro t o ei r n t l     s      t         o  ...
October 2012Dove at the third position in       convinced the consumers toIndia                               pay for comb...
Dr. Verghese Kurien –                                   an Amulya person Lost                                             ...
October 2012Co-operative mechanism of Dr.     Be it politics, sports, Bollywood,Kurien kept getting better and    the Amul...
October 2012Promotional strategy of           stood for the ‘Taste of India’. HeAMUL                              relentle...
October 2012Prize (1989) and PadmaVibhushan (1999). Dr. Kurienwrites in his life history, Myunfinished dream will only bea...
O tbr 02                       co e 2 1   Wele    ’b     l    bc    a k    sn     o     oWe a to errm y u  w n t ha fo o! ...
SOIL Markezine - Oct 2012
SOIL Markezine - Oct 2012
SOIL Markezine - Oct 2012
SOIL Markezine - Oct 2012
SOIL Markezine - Oct 2012
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SOIL Markezine - Oct 2012

  1. 1. October 2012MARkezine ezineMarketing magazine of School of Inspired Leadership FMCG Industry Moving along with Fast Moving Consuner Goods “With the variety on offer, customers have little to worry about issues like inflation. Lifes not so blissful for the players though, and inflation is just the tip of the iceberg” says Savreen Gadhoke of B&E.
  2. 2. October 2012TEAM MARKezine s DoddleDear Readers,With a long battle won at last, the government has been able to allow FDIin multi and single brand retail. FDI in other sectors like insurance, pensionand aviation are more than welcome in India. By allowing big players toinvade India, it seems like a second revolution after liberalization in 1991which gave the Indian economy a high growth rate irrespective of the factthat even at that time many of the political parties raised seriousobjections. Even today the entire nation has mixed opinions about theimpact of such a decision. The future will tell us, whether the move ismeant to help the poor Indian farmer or the Indian consumer or to fuelmore foreign currency into the economy to offset the petrol price rise or isit just a play of politics.What we need to think about is that are we dependent on such timelyforeign funded revolutions to act as a catalyst to pump up the growth rateof our economy? Well, No! We had an inspiring leader who created the Tasteof India and made the poor villagers proud owners of it. Dr. Verghese Kurien(1921-2012), the founding Chairman of the Gujarat Co-operative MilkMarketing Federation (GCMMF) was behind the success of the Amul Brand ofdairy products. Today, India faces a dearth of such dynamic leaders who cancreate a great impact on lives in the rural sector and build multinationals.We, the students of the School of Inspired Leadership family pay tribute tothe father of the white revolution in India whose contribution to the farmerssociety has transformed millions of farmers’ lives.©SCHOOL of INSPIRED LEADERSHIP 1 | MARKezine
  3. 3. October 2012One step in the right direction is followed by more. The news thatCompanies Bill 2011 will make CSR mandatory for companies is anothersuch step. In a land of diversity, like ours, we also have mixed views aboutwhether it needs to be made mandatory of not.In this edition of Markezine we have an insightful article focusing on theFMCG in rural India. It examines the important growth drivers for IndianFMCG industries, its impact on the Indian economy and growth prospects.We have an interesting article on ambush marketing done by HUL. We havealso focused on how loyal is today’s FMCG customer.As always, we try our best through our efforts to bring in excellence in ourwork with a hope that we will all learn and grow together.Happy Reading!Team MARKezine.........................................................................................................................................................................THE MARKezine TEAMEditorsIshwarya Lakshmi | Sabharish Koruturu | Sandeep Singh | Shivaraj GaneshCreative DesignKaran Chhabra | Nikhil Girhotra | Sheeza Shakeel©SCHOOL of INSPIRED LEADERSHIP 2 | MARKezine
  4. 4. Contents October 2012 ........................................................................................................................................................................................................................................................................................................................................................... .............................................................................................................................................................................. .............................................................................................................................................................................. FEATURED ARTICLES PAGE NO. ............................................................................................................................................................................. FMCG in Rural India 5 Important growth drivers and the growth in the rural sector Sarvesh Pingulkar, School of Inspired Leadership ............................................................................................................................................................................. The Dirty Picture in FMCG 16 Ambush marketing by HUL Kushagra Jhalini, School of Inspired Leadership ............................................................................................................................................................................. “Butterfly Consumers” of the FMCG Sector 19 Loyalty in the FMCG sector Sandeep Singh, School of Inspired Leadership ............................................................................................................................................................................. 4 Ps Unleashed 24 4 Ps for Dove Sarvesh Pingulkar, School of Inspired Leadership ............................................................................................................................................................................. Dr. Verghese Kurien 28 Amulya person Lost Shivraj Ganesh, School of Inspired Leadership ............................................................................................................................................................................. ©SCHOOL of INSPIRED LEADERSHIP 3 | MARKezine
  5. 5. FMCGIN RURAL INDIA October 2012Sarvesh PingulkarBusiness Leadership ProgramWhat are FMCG goods? Care, Marico Industries, NIRMA, Coca-Cola, Pepsi andFMCG is an acronym for Fast others.Moving Consumer Goods (alsonamed as consumer packagedgoods), which refers to goodsthat we buy on daily basis forfrequent consumption andthese goods have high turnover.The goods in this categoryinclude all consumables (otherthan groceries/pulses) liketoilet soaps, detergents, What is rural market?shampoos, toothpaste, shaving The FMCG sector is divided intoproducts, shoe polish, packaged two distinct segments –food, household accessories • The premium segment,and certain electronic goods. which caters mostly to theMajor players in this sector urban upper middle class.include HUL (Hindustan Unilever • The popular segment withLtd.), ITC (Indian Tobacco prices as low as 40% of theCompany), Nestle India, AMUL, premium segment. ThisDabur India, Asian Paints segment is further subdivided(India), Cadbury India, into Mid-priced segmentBritannia, Procter and Gamble (semi-urban) and Low priced(P&G) Hygiene and Health segment (mass rural market).©SCHOOL of INSPIRED LEADERSHIP 5 | MARKezine
  6. 6. October 2012Hence, the rural market, The important growthpresent at the bottom of the drivers for Indian FMCGpyramid, is characterized by industry in near futurepresence of poor population, will be–low median income, poorinfrastructure and agrarian (not • Availability of key rawindustrial) activity. materials, cheaper labor costs & presence across the entire valueBut in recent past, this chain, giving the Indianperception has changed companies a key competitivebecause of the increasing per advantage.capita income of the ruralpopulation. The villages that • Rise in per-capita consumptioncome under the sphere of and disposable incomesdeveloping metros and (specifically in rural area)neighboring cities are enabling the companies to focusresponding to the overall on premium brands.development. Also, growing • Increase in categorysize of educated population, penetration in rural markets withrising per capita disposable strong distribution channels.income, along with the higher Investment in this sector stocksaspirations of people have also attracts investor’s attentiontransformed the rural market because the demand forinto a place with immense an FMCG product is throughoutgrowth possibilities. the year.This change has also impacted • Constant innovation in existingthe growth drivers of FMCG products from customerindustry, which now focus on feedback.©SCHOOL of INSPIRED LEADERSHIP 6 | MARKezine
  7. 7. October 2012Impact of Rural FMCG FMCG Industry - India 2012 (in Billion Rs.) _ AC Nielsonsegment on Indian ReportEconomy – .................................................................................... 2000 ........................................................... ...........................................................The FMCG sector is the fourthlargest sector in Indian .................................................................................... 1500economy (Rs.1830 billion) andRural segment forms 1/3rd of .................................................................................... 1000the total FMCG sales in India.The report by AC Nielson on .................................................................................... 500Indian FMCG industry showsthat FMCG sector will grow at ....................................................................................15-20% per year and reach the 0 2010 2011 2012size of Rs. 6000 billion by Industry Size2020. Urban market SizeAt present, urban India Semi Urban abd Rural Marketaccounts for 66% of total FMCG Sizeconsumption, with rural India The growing spending of ruralaccounting for the remaining and semi-urban segment34%. However, rural India towards FMCG products isaccounts for more than 40% mainly responsible for theconsumption in major FMCG growth in this sector, asking thecategories such as personal manufacturers to deepen theircare, fabric care and hot concentration on high salesbeverages, along with long volumes.term growth categories likefood and dairy. As per the analysis by©SCHOOL of INSPIRED LEADERSHIP 7 | MARKezine
  8. 8. October 2012 ASSOCHAM, Companies like • Slowing consumption rates HUL and Dabur India get 50% in urban markets of their sales from rural India. Currently, in urban India, rising While Colgate Palmolive India disposable income & are leading and Marico constitute nearly to “value vaulting” wherein, 37% respectively, however, after a threshold level of Nestle India Ltd and GSK penetration, consumers move Consumer drive 25% of sales up the value chain, rather from rural India. than increase consumption. Hence, companies are looking FMCG: Urban vs Rural segment growth - 2003 - 2012 towards the rural segment for 18 18 .......................................................................................... higher sales volumes. 20 ......................................... ......................................... 14 16 17 15 .......................................................................................... 10 Also, the urban population is 13 14 10 .......................................................................................... 10 developing a craze for organic 5 products in the FMCG sector and 3 .......................................................................................... 0 since there will not be a large 2003 2005 2007 2009 2011 2012 -5 .......................................................................................... number of FMCG organic -8-10 .......................................................................................... products in the near future, this Urban Rural industry will have to look towards rural markets Why focus on rural (ASSOCHAM report’11). markets? • Rising rural markets With the presence of ~12.2% in the rural and semi-urban of the world’s population in the areas and the FMCG market indian villages the Indian rural penetration is currently about FMCG market is something no 2% in general as against its one can overlook. ©SCHOOL of INSPIRED LEADERSHIP 8 | MARKezine
  9. 9. October 2012total growth rate of about 8%. recently announced has a cut ofThe Indian rural market with its 4% in excise duty to fight withvast size and demand base the slowdown of the Economy.offered a huge opportunity that This announcement has aFMCG companies cannot afford positive impact on the industry.to ignore. With 150 million But the benefit from the 4%households, the rural population reduction in excise duty is notis nearly three times the urban likely to be uniform acrosspopulation. FMCG categories. Due to the recent waiver of loans, national rural employment guarantee scheme and increasing minimum support price, disposable income in rural India has been increasing. • Foreign Direct Investment (FDI) Automatic investment approval• Governmental Policy (including foreign technologyGovernment has enacted agreements within specifiedpolicies aimed at lifting of the norms), up to 100% foreignquantitative restrictions, equity is allowed for most of thereducing excise duties, FDI and food processing sector exceptfood laws resulting in an malted food, alcoholicenvironment that fosters beverages and those reservedgrowth. The government©SCHOOL of INSPIRED LEADERSHIP 9 | MARKezine
  10. 10. October 2012for small scale industries (SSI). addition to easy availability ofThere is a continuous growth in raw materials.net FDI Inflow. • Sectoral Opportunities• Vast Market opportunities Dairy Products - India is theRural India accounts for more largest milk producer in thethan 700 Million consumers or world, yet only around 15% of70% of the Indian population. the milk is processed. TheThe working rural population is organized liquid milk business isapproximately 400 Million. And in its infancy and also has largean average citizen in rural India long-term growth potential.has less than half of the Packaged Food - Only aboutpurchasing power as compare 10-12% of output is processedto his urban counterpart. and consumed in packaged• Export - “Leveraging the form, thus highlighting theCost Advantage” huge potential for expansion ofCheap labor and quality product this industry.& services have helped India Oral Care - The oral careachieve a cost advantage over industry, especially toothpastes,other countries. Even the remains under penetrated ingovernment has offered zero India with penetration ratesimport duty on capital goods around 50%. With rise in perand raw materials for 100% capita incomes and awarenessexport oriented units. Multi- of oral hygiene, the growthnational companies outsource potential is huge.their product requirements fromtheir indian branches. It Beverages - Indian tea marketprovides a cost advantage in is dominated by unorganized©SCHOOL of INSPIRED LEADERSHIP 10 | MARKezine
  11. 11. October 2012players. 50% of the market is HUL is a major establishedcaptured by unorganized player in rural markets. Projectplayers highlighting high Shakti started in 2001 with thepotential for organized players. objective of capturing the media-dark regions by turningRURAL MARKETING BY rural women into direct-toFMCG SECTOR home distributors of HUL’s mass-market products, afterFew of the FMCG companies analyzing the slowinghad understood the importance consumption patterns of urbanof the untapped rural market markets. This project is alsoand explored it with innovative aimed at increasing thetechniques. companys rural distribution1. Hindustan Unilever reach.Limited (HUL) – ProjectShakti The Shakti Entrepreneurs or volunteers (Shakti Amma) invest Rs. 20000 initially©SCHOOL of INSPIRED LEADERSHIP 11 | MARKezine
  12. 12. October 2012to buy products and then sell this initiative, HUL has beenthe products door-to-door and successful in maintaining itsearn 10-15% margin on the distribution reach advantageproducts. This program helped over its competitors.the women increase their 2. ITC Limited - Projectincome from Rs. 25/day to Rs. e-Choupal100-120/day. A support ITC designed the e-Choupalprogram, Shakti Vaani, trains model to tackle the challengespeople in schools and villages posed by fragmented farms,on sanitation and hygiene. weak infrastructure and theThe main advantage of the involvement of numerousShakti program for HUL is intermediaries, among others.having more firm feet on the Appreciating the significance ofground. Shakti Ammas are able intermediaries in the Indianto reach far flung areas, which context, e-Choupal leverageswere economically unviable for Information Technology tothe company to tap on its own, virtually cluster all the valuebesides being a brand chain participants, deliveringambassador for the company. the same benefits as verticalCurrently the Shakti network is integration does in matureof 55,000 Ammas covering agricultural economies like the140,000 villages across 15 USA.states reaching 3 m homes. The e-Choupal ensures world-classlong term aim of the company is quality in delivering all theseto have 100,000 Ammas goods & services throughcovering 500,000 villages and several product / servicereaching 600m people. With©SCHOOL of INSPIRED LEADERSHIP 12 | MARKezine
  13. 13. October 2012specific partnerships with theleaders in the respective fields,in addition to ITCs ownexpertise. While the farmersbenefit through enhanced farmproductivity and higher farmgate prices, ITC benefits fromthe lower net cost ofprocurement (despite offering They have created a characterbetter prices to the farmer) “Sangeeta Bhabhi” to hardsellhaving eliminated costs in the their products in rural India.supply chain that do not add The personality of an educatedvalue. Launched in June 2000, married woman was conceivede-Choupal, has already to push P&Gs leading brands,become the largest initiative Tide and Head & Shoulders as aamong all internet-based dual proposition called kamyabinterventions in rural India. This jodi in rural areas of Uttarinitiative, which has covered Pradesh. The company isover 70,000 hectares, has a planning to roll the initiativemultiplier impact and reaches further to cover nearly 5,000out to over 1.6 million farmers. villages across the state of UP.3. Proctor and Gamble - Growth prospects ofProject SB FMCG in rural India –P&G is trying hard to enter thebattle on rural FMCG market, In the future, planned growth ofwhich will give them a base for rural India will help companiestheir vast product portfolio. leverage their efforts.©SCHOOL of INSPIRED LEADERSHIP 13 | MARKezine
  14. 14. October 2012 Creating Buying Power • Access to credit • Income generation Communication Links Shaping Aspirations • Distribution systems • Consumer education • Communication Links • Sustainable development Tailoring local solutions • Targeted product develpment • Bottom - up innovationIncreased focus on farm sector if the companies are able towill boost Rural income, hence convince the rural consumers toproviding better growth buy branded, new generationprospects to the FMCG products, they would be able tocompanies. generate higher growth in the near future. Surely, the ruralBetter infrastructure facilities income will rise in future,will improve their supply chain. boosting purchasing power inFMCG sector is also likely to the countryside. But it will testbenefit from the growing innovative approach, targeteddemand in the market. Because product development, productof the current low per capita access and robust distributionconsumption of almost all the channels offered by FMCGproducts in the rural areas of companies.India, FMCG companies haveimmense possibilities for References: Google Imagesgrowth. Hence,©SCHOOL of INSPIRED LEADERSHIP 14 | MARKezine
  15. 15. The Dirty Picture In FMCG October 2012 Kushagra Jhalini Human Resources Leadership ProgramTraditionally, Ambush Marketing certainly remember how Nikerefers to a companys attempt attempted to ambush Adidasto capitalize on the goodwill, during 2012 Olympics). Butreputation and popularity of a Indian advertising industry,particular product/event by being a powerhouse of thinkcreating an association with it, tanks who run their imaginationwithout any official authorization beyond traditional boundaries,or consent of the necessary have utilized ambush marketingparties. in the most creative means, including advertising campaignsAmbush marketing has for companies belonging totraditionally been the bread and FMCG as well as aviationbutter for companies craving for industry.that extra attention duringpromotion of major sporting Procter and Gamble began anevents (most of us would aggressive advertising©SCHOOL of INSPIRED LEADERSHIP 16 | MARKezine
  16. 16. October 2012campaign, which seemed almost spellbound! Hindustan Unileverubiquitous as the company certainly proved that apart fromdeployed its billboards at cricket, timing can bemultiple locations (including immensely important in FMCGadvertising space available on industry as well. It was abus panels as well) for about a mind-boggling effort bycouple of weeks or so. Their Hindustan Unilever to grab abillboard advertisement only greater pie of the market share.conveyed: “A mystery shampoo. This campaign spearheaded byEighty percent women say is Hindustan Unilever attractedbetter than anything else”, tremendous attention from thewithout even mentioning that general public, advertisingthe advertisement is about industry and the competitorsProcter and Gamble’s Pantene alike.shampoo. It was, indeed, a watershed inBut just before Procter and the Dove saga. And that’s whatGamble was about to reveal the happened to Procter andmystery, Hindustan Unilever Gamble’s gamble.deployed its billboards adjacent (References: Wikipedia.org,to those deployed by Procter gala-marketlaw.com)and Gamble in most of thecases, which stated: “There’s nomystery. Dove is the numberone shampoo!!” We don’t knowabout Procter and Gamble, butthis campaign certainly left thetarget audience©SCHOOL of INSPIRED LEADERSHIP 17 | MARKezine
  17. 17. The “Butterfly Consumers” of the FMCG sector October 2012Sandeep SinghMarketing Leadership ProgramThe demand created by create, but also and maintainfast-moving consumer goods loyalty among consumers.(FMCG) will never die out. From “Loyalty” means faithfulness. ita simple detergent to clean the means unwavering devotion. Yetfloors to a pain relief spray, the the concept of loyalty, at times,need will always be forever. runs parallel to our ownThe rapidly increasing interests. But this romanticcompetitiveness within the ideology is not feasible in aFMCG market compels an commercial setting. Today, theorganization to not only entice big brands are asking the Indianthe consumers to buy the youth, not only for their devoutorganization’s brand, but loyalty but at a certain level,compel the consumer to commitment as well. And thiscontinue with the same. It is commitment is born when thetherefore essential that an consumer feels they a are partorganization does not merely of the bigger initiative.©SCHOOL of INSPIRED LEADERSHIP 19 | MARKezine
  18. 18. October 2012Therefore, the focus of most ofthe FMCG companies hasshifted to creating more ofconsumer engagement,involving the consumers inpurchase decisions.Instead of a physicalcompany-to-consumer old female, shopping at a poshapproach, big brands are mall in Delhi. Walking past aseeking the help of social cosmetic counter, she wasmedia, blogs and digital stopped by a saleswoman.technologies. Increasingly, Some twenty minutes later, shebrand awareness through social had bought a new brand, at amedia is becoming a key 300% premium to her regularstrategy for any tech savvy brand.FMCG firm. The most recent What happened in these 20initiative by NOMARKS to get a minutes to delight her was thatface from the consumers for a frontline person of the storepackaging itself is a great way engaged her and offered her ato engage consumers, advertise personalized skin analysis tothe brand and build consumer better understand her skin.loyalty. Based on the test, she wasWith growing competitiveness, advised on her diet, fitness andthe companies are directly finally, recommended a specifictargeting the consumer’s skincare product. She walkedpsyche. One of the better away, delighted with thisexamples of this was a 24-year personalized experience. She©SCHOOL of INSPIRED LEADERSHIP 20 | MARKezine
  19. 19. October 2012would, of course, discuss this Hundreds of birds will sing,with many of her friends. She is while, dragonflies & many othernot unique. She represents 50 will join in, flowers and fruitsmillion young Indian consumers will bloom, an odd owl andwho account for over 60% of pussycat will sing along, and thethe new consumption in entire planet will form thediscretionary categories such as chorus and wish him a long life.durables, skincare and apparel. A genuine effort to save the planet and create customerA friend bought a fabulous blue loyalty, isn’t it?shirt from LOUIS PHILIPPE,earlier this year. On his birthday Most FMCG products are lowa month later, to his surprise, involvement products, sohe was greeted with a card incentive and not the productwishing him happy birthday and becomes the primary reward.telling him that the card This becomes more relevant, ifcertified that a tree had been the incentive is exotic & not inplanted in his name at Satkosia proportion to the cost of theGorge Sanctuary, Orissa, in product. But due to its lowassociation with Grow Trees margins, most FMCG productsNGO for him, for us and for cannot afford to do so.mother earth. The company Further, there is low productdrew him in by informing him differentiation that leads to lowthat this year, friends and customer loyalty and highrelatives would not be the only switching. Customer retentionones singing on his birthday. becomes very important asThe sky, clouds and winds will acquiring a new customer isalso join in the celebration. five times more costly than©SCHOOL of INSPIRED LEADERSHIP 21 | MARKezine
  20. 20. October 2012retaining the existing customer. bit too far.If one organization is not Another problem with theproviding customer satisfaction, loyalty program is that theythen its competitor will provide have become so popular thatthe same and drive it out of the there are actually too many ofmarket. This is why most efforts them. We all probably have ain the direction of loyalty reward card for every majorprogram are limited to short supermarket in the country, butterm efforts to boost sales to do any of them actually haveachieve quarterly targets or to our exclusive loyalty? And whenpromote new categories / brand it comes to supermarkets inextensions. Innovation in particular, we are often boundproducts has become an to shop at our nearest and mostimportant aspect which the convenient shop and notcompany needs to address, in according toorder to keep the customer the best loyalty scheme.happy and loyal as there is notone market in India but many. References: www.facebook.comIn this age of instantsatisfaction, the Indian psycheis tuned towards a decreasedlevel of tolerance and greaterexpectations. Thus, we cansatisfy such a customer butlevel of tolerance and increasingexpectation from them to beloyal is stretching the issue a©SCHOOL of INSPIRED LEADERSHIP 22 | MARKezine
  21. 21. 4P Unleashed Dove Soap: Movement of Self Esteem October 2012Sarvesh PingulkarBusiness Leadership Program Product Promotion Place Pricing (Distribution)Introduction – Dove entered India in 1995, as a personal care brand ofDove was introduced to the Hindustan Unilever and soon inworld by Unilever in 1957, not 2000; it was tapped to becomeas soap but as a beauty bar. Masterbrand with long termThis product used the marketing strategy.strategy - “the product wouldnot dry your skin because it has From its introduction, Dove hasone-fourth of cleansing milk”. always been known to beDove then slowly changed its having characteristic marketingstrategy from “cleansing cream” strategies and in 2004, for theto “moisturizing cream”, which first time, Hindustan Unilevermade it America’s one of the won “marketer of the year”most recognizable brand. award for its brand Dove. Product Mix (4 Ps) 1. Product Strategy – The important criterion to decide on product strategy is to differentiate the product©SCHOOL of INSPIRED LEADERSHIP 24 | MARKezine
  22. 22. O tbr 02 co e 2 1f m i c mp t o sa diasro t o ei r n t l s t o •B a dfc s do man rn o u e n iiv le k o n i c mp t ien ov s n wig t o eiv s t c so r e me t f u tme s g n osrn tsa dis hsa o t te gh n n i t b u g “ o - d l wo n– N n Mo e” mec n u r t ain . h o s mes moi t s T e v o b a tu i ter wnwa . e ui ln h i o f yp o u t o io igsrtg i r d c p s inn tae y s t •C n ieigtep o u ti os r d n h r d c le fame t f dab n f ta i doi n e ei h t t c c , o es a i a g o h y l D v o p s t r wt edsig i e teb a df m i n us s h rn r t h o sa eo tec c . tg f h y lec mp t o si tes me o ei r n h a tc tg r a dta i v le b ae o y n h ts au d y 2 P o t n– . r mo i oc n u r. o s mes•Do es a h sdf rnitd v o p a iee t e f atep o u t sab a t b rh rd c a e uy a Mao p o t n l a ag s jr r moi a c mp in owi ma i m mosu i n th xmu i r ig t z fr o eh v b e o D v ae enc ne t a igp v lez r. o tn h vn H au eo •2 0 –Do eS l E te 06 v ef se m -•Do eas u e i g v l s s ma e o c mp in a ag .df rnit nwi ie o iee t i f ao t da f h“ i u i r a d“ o ds iMos r e ” n g o kn t z •2 0 –Do eR a B a t 08 v e l e uyc a s ga e t l n i g n” e n . c mp in T i c mp inp t a ag . hs a ag u©S H O o I S I E L A E S I C O L f N PR D E D R H P 2 |MA K z e 5 R ein
  23. 23. October 2012Dove at the third position in convinced the consumers toIndia pay for combination of good moisturizer and skin nourishing• Currently Dove runs the agent.promotion campaign using“Market Specialization Concept”, • Dove has priced the productwhich promotes the product as such that high levels of“Real Beauty” and good for perceived quality are related topeople of all ages. higher price but just high enough not to be unattainable• Dove’s promotional video on to target consumers.social media (Facebook andYoutube) has been watched by 4. Place and Distributionover 30 Lakh people. channels – • Major distribution channels• Dove also promotes using for Dove have been HUL’sconsumer magazines, regular distribution channels,newspaper. including 2500 distribution3. Price – stockists, 2000 suppliers andDove entered the Indian market 6.3 million retail outlets. Thisin 1995 with price tag of Rs. created a competitive50/-, which made it difficult for advantage for Dove.the consumers to accept it. • General trade comprised ofDove then lowered the price to grocery stores, chemist shops,Rs. 28/-, focusing on broader wholesalers and general shops.Indian consumer market.• Dove India priced the productwith clear promotions, which©SCHOOL of INSPIRED LEADERSHIP 26 | MARKezine
  24. 24. Dr. Verghese Kurien – an Amulya person Lost October 2012Shivaraj BabuMarketing Leadership ProgramAMUL- Brain child of Dr dairy industry offeringKurien opportunities galore toIt all started 60 years back at entrepreneurs worldwide.Anand, an unknown village but White Revolutionas years passed; it became the Mr. Kurien gave a unique nameMilk capital of India due to the to KDCMPUL and it was namedpresence of AMUL dairy. AMUL as Amulya and then modified itwas started in the year 1946 by to AMUL which stands forTribhuvandas Patel as KDCMPUL priceless. The brand AMUL(Kaira District Cooperative Milk (Anand Milk Union Limited)Producer’s Union Limited). The came into existence andphase of KDCMPUL changed became the leading marketwhen a young engineer, Dr. player in Gujarat. AMUL adoptedVerghese Kurien was employed a strategy of forming severalat Anand, later to be known to co-operative societies for athe whole world as "the group of villages. The upstreamMilkman of India". Today, India supply chain was entirelyis The Oyster of the global designed by Dr. Kurien.©SCHOOL of INSPIRED LEADERSHIP 28 | MARKezine
  25. 25. October 2012Co-operative mechanism of Dr. Be it politics, sports, Bollywood,Kurien kept getting better and the Amul girl is everywhere.by the end of 1960, Amul had AMUL is often said to be playingbecome a success story in the role of a “social observerGujarat. Late in 1965 with the with evocative humor”, theircombined efforts of Prime billboards are always veryMinister Lal Bahadur Shastri creative and unique. Theand Dr. Kurien NDDB (National punch-lines by AMUL girl areDairy Development Board) was inimitable and they have wonestablished. the maximum number of awards in India for any ad campaignBuilding the Brand ever! Many other brands triedAMUL copying what Amul has doneThe slogan of AMUL- “Taste of but they have failed miserably.India” was given by Dr. Kurien.The first advertisement of AMULcame in 1966 for AMUL butterwith AMUL girl to competeagainst polson butter girl. TheAMUL girl became a hugesuccess and it is has beencontinued for more than 40years and it is the longestmarketing campaign in India.The Amul girl is still as youngas she was 46 years back; infact she is glowing even more.©SCHOOL of INSPIRED LEADERSHIP 29 | MARKezine
  26. 26. October 2012Promotional strategy of stood for the ‘Taste of India’. HeAMUL relentlessly focused on this; that’s why such a big brand was built on less than one per cent marketing outlay, while other companies spent upwards of seven to 10 per cent as marketing expenses. He was conscious that this was farmers’ money and had to be judiciously spent. Dr. Kurien believed that if the quality of your product is good it sells by itself and that is how with less than one percent of marketing outlay, he was able to built a huge reputation among consumers Conclusion Dr. Kurien is the recipient of more than 150 national and international awards, including the Raman Magsaysay Award for Community Leadership (1963), Padma Shri (1965),In Dr. Kurien’s mind Amul stood Padma Bhushan (1966), Watelerfor an umbrella brand which Peace Prize (1986), World Foodstraddled many categories, and©SCHOOL of INSPIRED LEADERSHIP 30 | MARKezine
  27. 27. October 2012Prize (1989) and PadmaVibhushan (1999). Dr. Kurienwrites in his life history, Myunfinished dream will only beaccomplished when the farmersof India have a level-playingfield to compete with otherforms of businesses. AlthoughDr. Kurien is no more with ushis, his contribution to thecountry is immense.RIP Dr Kurien…!!!©SCHOOL of INSPIRED LEADERSHIP 31| MARKezine
  28. 28. O tbr 02 co e 2 1 Wele ’b l bc a k sn o oWe a to errm y u w n t ha fo o! mak z e ol dan t re i @s in i.e n i

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