Study on Brand awareness of Mahindra & Mahindra Tractors

19,176
-1

Published on

Study on Brand awareness of Mahindra & Mahindra Tractors

Published in: Business
10 Comments
36 Likes
Statistics
Notes
No Downloads
Views
Total Views
19,176
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
2
Comments
10
Likes
36
Embeds 0
No embeds

No notes for slide

Study on Brand awareness of Mahindra & Mahindra Tractors

  1. 1. CHAPTER – I<br /><ul><li>Introduction
  2. 2. Need for the Study
  3. 3. Objectives of the Study
  4. 4. Methodology
  5. 5. Limitations of the Study
  6. 6. INTRODUCTION</li></ul>India being an agriculture dependent country, farm equipments such as tractors have played a very crucial and significant role due to which where we can find the consistency and efficiency in the economy. <br /> In today’s competitive world, a firm has to attract the interest of the customers and satisfy by providing effective service to them consistently as per their taste and requirements. They have to understand and know customer needs and preferences.<br /> Marketing occupies an important position in the organization with regard to business. Peter Ducker, points out that the purpose of marketing or business is “to create a customer”. Few decades back the seller was the king of the market, the simple reason for this was lack of competition.<br /> Marketing is the human activity directed at satisfying human wants through the exchange of goods and service.<br /> Marketing management occupies the most important position in business management. Marketing management in a firm is critical as it deals with customers and their needs. The major task of marketing management is to adopt firm’s resources to market opportunities<br /> The essence of marketing concept is that the customer and not the product shall be the heart of the entire business system. It emphasizes on customer oriented marketing process, plans. Policies and programs, which are formulated to serve efficiently the customer demand.<br /> “Marketing is so basic that it cannot be considered as a separate function. It is the whole business seen from the point view of its final results i.e., from the customer’s point of view”.<br /> A consumer is the king and has the right to choose from a large variety of offering. He is the central point and all marketing activities revolve around him. Today market is a more consumer oriented in the sense all the business operations revolve around the customer satisfaction and service.<br />Thus, marketing is often dynamic, challenging and rewarding. It can also be frustrating and even disappointing but never dull. The topic “A study on the brand awareness of Mahindra & Mahindra Tractors” is chosen to study the Brand Awareness adopted in Sri Ganesh Agro Tractors, dealers for Mahindra & Mahindra Ltd. This project deals with how Mahindra & Mahindra Ltd. defines its consumer target and uses its marketing tools in the best way to attract and satisfy their needs and wants competitively and profitably. Here marketing functions are limited to the function of buying and selling, but they include all functions necessary to satisfy the customer such as financing, after sales services, etc.<br />Customer oriented marketing approach points out the primary task of business enterprise is to study needs, besides the value of potential customer on the basis of latest and accurate knowledge of marketing demand.<br />Marketing management usually represents all managerial efforts and functions to operate the marketing concept, not only in letters but also in the spirit. Marketing concept demands customer oriented marketing plans, programs and policies so that the merchants can assume perfect correlation between demand and supply.<br />Thus, marketing is a matching process by which a producer provides a marketing mix i.e., product, price, promotion and physical distribution that meet consumer’s demand of a target market within the limits of society.<br /> Finding out “A study on the brand awareness of Mahindra & Mahindra Tractors” is the important statement of the problem in this project.<br /> This will help the firm or company to improve their marketing strategies as well as servicing strategies adopted by them. It also helps them to know their current position in the market.<br />Problem Statement<br />In today’s competitive market, the brand plays an important role in every business, so brand awareness is the important task and makes the loyal customers towards the brand is a great challenge in every company.<br />Based on the above statement I have decided to take up my academic project on the title “A study on the brand awareness of Mahindra & Mahindra Tractors” at Sri Ganesh Agro Tractors in Channarayapatna.<br />Objectives of the Study<br />The study is conducted with reference to study on the brand awareness of Mahindra & Mahindra Tractors. The important objectives of this study are:-<br />To study the brand awareness adopted by the parent company Mahindra & Mahindra Tractors Ltd.<br />To know the marketability of the products, to identify major problems the company/dealer is facing and to suggest measures to overcome such problems.<br />To analysis the product ranges of the company.<br />To give suggestions based on the survey to improve the quality of the products and services.<br />To study advertising and promotional activities of the company.<br /> To measure reasonable time taken for service and delivery.<br />To assess the selling performance of the dealer and services provided by them.<br />To study the attitude of customers towards the facilities provided at the centre.<br />To evaluate the effectiveness of marketing mix strategy adopted by Sri Ganesh Agro Tractors.<br />Scope of the study<br /> This study was conducted with reference to “A study on the brand awareness of Mahindra & Mahindra Tractors” in Sri Ganesh Agro Tractors, an authorized dealer for Mahindra & Mahindra Tractors Ltd., in Channarayapatna.<br /> This study was conducted to evaluate the brand awareness adopted by of Mahindra & Mahindra Tractors hence it studies the marketing activities. It also studies the opinion of the management towards publicity and promotion of products of the company. The study also makes an effort to show the inter-relation between the product and the consumer to know how of Mahindra & Mahindra Tractors would compete with its competitors in recent years in marketing and promotional activities. <br /> The result of the study helps the company to gives better service to their customers, as the feedback is directly got from the customers. It also provides a base for the company to gear up to the customer’s demands and expectations and also has and understanding of customer needs and preferences in the future.<br />Research Methodology<br />The formidable problem that follows the task of designing the research project is known as the " Research Design" . The design of a quantitative research study includes the method for collecting the data. The sample design and construction of the data collection instrument.<br />1. Purpose of enquiry: The scope of the enquiry is to support the data required to make study on “A study on the brand awareness of Mahindra & Mahindra Tractors”.<br /> 2. Scope of data: The scope of enquiry is limited to the study of the topic concerned only.<br />3. Sources of data: The data collected through primary data. <br />A. Nature and type of enquiry: Non-official Non-confidential <br />B. Direct: 100% accurate data.<br />Sampling Design<br />A sample size of 100 respondents was covered. Random sampling procedure of survey was conducted during the collection of primary data. Respondents were classified on the basis of their age etc. Respondents were consulted at the showroom. <br />Sources of Data Collection<br />The task of data collection begins after a research problem has defined & Research design of plan cooked out. There are 2 basis ways of data collection.<br />Primary Data<br />A detailed questionnaire was handed over to a chosen sample. <br />Frequent visitors to the Sri Ganesh Agro Tractors.<br />Interaction with Customer.<br />Discussion with executives of Sri Ganesh Agro Tractors.<br />Secondary Data<br />Product broachers.<br />Previous annual report.<br />Magazines & journals.<br />Internet.<br />Techniques for data analysis<br /> Questionnaire method was used as research instrument for this study. Closed ended questionnaires are used for the customers to answer the questions. <br />Limitations of the Study<br />Time constraint has prohibited from going deep into the subject.<br />The information obtained or the collection of data is limited.<br />The study is purely academic.<br /><ul><li>Due to time constraints the study is restrict to Channarayapatna only.</li></ul>Only the customers of Sri Ganesh Agro Tractors were considered as respondents.<br />The survey was conducted in this urban sector of respondents thus it cannot be generalized.<br /><ul><li>The information provided by respondents could be biased.</li></ul>CHAPTER-II<br /><ul><li>Industrial profile of Farm Equipment Sector
  7. 7. Profile of Mahindra & Mahindra Tractors
  8. 8. Profile of Sri Ganesh Agro Tractors
  9. 9. Organization Structure
  10. 10. Product Profile
  11. 11. SWOT Analysis </li></ul>2 INDUSTRY SCENARIOS<br />The tractor industry in India has developed over the years to become one of the largest tractor markets in the world. From just about 50,000 units in early eighties the size of tractor market in the country has grown up to over 200,000 units. Today industry comprises of 14 players, including 3 MNCs. The opportunities still are huge considering the low farm mechanization levels in the country, when compared to other developed economies across the world. Key concern for the industry is its dependence on agricultural income in hands of farmers and the state of monsoon. The key players are Sonalika, John Deer, Mahindra, New Holland etc. <br />2.1 History of the Tractor<br />The word tractor was derived from the combining parts of the word tractor and motor and was first noted in a patent issued in USA in 1890. A self profiled power unit used to pull 100 to carry and operate till age cultivation harvesting, machinery to provide power take of or other , power out let a drive stationary and down implements, machinery as distinguish from tractor to pro puller steam engine tractors.<br />Tractor was first used during the 1870's this tractors’ called tractors engine were large four wheeled machine driven by steam. They provided enough power to pall as money as 40 plough they were too awkward to be practical. The first tractors in the since of powered traction vehicles, grew out of the stationary and portable steam engine operated on farms in 19 the century and used to hour plows by 1890's.<br />2.2 The Indian Tractor Market<br /> The Indian tractor industry, dominated since time immemorial by a few known brands, is in the process of a change. A look at the average growth rate recorded by the tractor industry point towards a general slowdown. The growth rate for the eight month period April- November 1996 has dropped to 13% from 16% recoded during the previous year. Among the 3 Indian majors, Mahindra & Mahindra Tractor &Farm Equipment (TAFE) & Punjab tractors, only M&M has recorded a marginal drop in market share. Overall all of them have witnessed increased sales in terms of volume. As for the others which include the links of Eicher, HMT, ESCORTS etc., there has been steady erosion in the market share. A begin state policy, which provides the buyer subsidies & soft loans has seen the tractors become a popular substitute for the LCV as utility vehicle in rural areas.<br />Due to the general slowdown in the growth rate of the Economy, the industry expects to slow down. The growth rate in tractor declined from 18.5% in 1994-95 to 17.3% in 1995-96 & 1996-97 (April-Nov).<br />But there is one company which has defined this entire ‘slowdown’ pattern & is growing at a steady pace. The co. is Punjab Tractors Ltd. The market share of Punjab tractors has increased from 11% to 14.9% in 1996-97 (April- December). It overtook Eicher in 93-94& Farm Equipment (TAPE).<br />The future of the tractor industry will see a shakeout of sorts. The small players will either have to survive. According to experts, ten years from now, the market will stagnate. If at all there is a market that will grow, it will be one for replacements. Till then Tractor players will continue to trudge along slowly maintaining a 5-6 percent growth rate.<br /> Hence the performance of the companies, from the automobile industry that have featured in this year's top50 reveals that though the industry is in the grip of recession players with very good fundamentals will always continue to reward the investors.<br />The Indian tractor industry sold approximately 2.2 lakh tractors between, April 1996&March 1997. On an average the tractor market gas grown by 6% to 7% each year since 1993. When the industry was of around 1.4 lakh tractors in all these years some of the companies had limited production capacities & the customer had to wait for most popular models. These problems were more acute in the season & often aggravated by the short supply of premium models.<br /> However, since October 1996, a distinct change has been observed in the tractor market. All tractors models, including the so called premium products, are readily available in the show room. The main reason for this phenomenon is that all tractor manufacturers have been gradually increasing their production volume in the last few years and presently the total production capacity of all the tractor manufacturers has reached approximately 2.7 lakh units. This will ease the supply position of tractors and in times to come the customer will not have any waiting period for a tractor. <br />2.3 Uses of Tractors<br /> Following are the uses of tractor.<br />In the field of agriculture tractor have on important role to play in rising productivity.<br />Tractor is used in the field of transportation. The fertilizers can be carried to the field & the produce to the market with the help of tractors. It is also for the purpose of transportation goods from one place to another.<br />Through the use of tractor farm practices were revolutionized & agriculture crops were increased per hectare. Mechanized farming becomes possible through the use of tractors.<br />In stone crushers before the blasting of rocks drilling machines are used to drill the rocks with the help of tractors.<br />Not only has animal power been displaced & human effort reduced through the use of tractors.<br />2.4 Role of Tractors in Indian Agriculture<br />India has always been heavily dependent on agriculture for its economic growth. It follows that mechanized farming would increase agriculture output in the given the huge trucks of land which cultivated are would assume that tractors are sold in a big way in our country.<br />Indian agriculture is as old as civilization itself & the Indian farmer has the benefit of a vast past experience the yield of crops in India are very low when compared to even some of the south east when compared to even some of the south east Asian countries. Agriculture forms the backbone of the Indian economy & despite concerted industrialization in the last four decades; agriculture occupies a place of pride. Being the largest industry in India, it is the source of livelihood for over 70% of the national income. Its importance in industrial development in the supply of raw-materials to leading industries like jute, textile, sugar etc, is very high.<br />Agriculture increase national income & it helps in industrial development, agriculture helps for the promotion of international trade & the development of agriculture is essential for economic growth, the significance of agriculture in India arises also from the fact that the development in agriculture is an essential for the development of the national economics.<br />Though the experience of Indian farmer the yields crops in India very low when compare to other countries. For this reasons are quite obviously mono cropping & repeated use of land without rest is one problem is the efficient use of good fertilizers expect domestic fertilizers also primitive & traditional, besides the wooden plough, hoe, sickle & other old method of practicing agriculture no any mechanical or other devices are used.<br />By mechanization of agriculture we mean the replacement of animal & human power by machinery & pouching done by tractors. Sowing & putting of fertilizers by the drill & reaping & thrashing by the combined harvester & so on. The tractors will so be used in transporting crops to markets. By using tractors, crops can be easily taken.<br />2.5 Profile of Mahindra & Mahindra Tractors <br />Mahindra and Mahindra Limited were incorporated on October 2, 1945 as a private limited company under the Indian Companies Act of 1913 by two brothers, Mr. J.C. Mahindra and Mr. K.C. Mahindra. It was converted into a public limited company on June 15, 1955. Mahindra & Mahindra Ltd, one of the largest private sector companies in India, is the flagship company of the Mahindra Group. The company commenced operations in 1945 to manufacture General Purpose Utility Vehicles and later on entered into manufacturing of Tractors and Light Commercial Vehicles (LCVs). Over the years, the company has expanded its operations from automobiles and tractors to steel, trading and manufacturing of Ash Handling Plants & Traveling Water Screens. The company is focused to become a world giant in the tractor business. It has already made its presence felt in countries in Europe, Latin America, Africa and United States of America.<br />Mahindra and Mahindra began operations, with assembly of jeeps imported in semi knocked down (SKD) condition form wills, USA Mahindra and Mahindra started manufacturing jeep in collaboration with wily overland corporation and American motor cooperation (now parts of the Chrysler group) in 1954 and LCVs in 1965. Tractor production started in 1965 in a joint venture company with technical collaboration of international harvester company Chicago, USA. This company was merged with M and M in 1977. M and M is originally a principal supplier to the government for defense and other departments. M and M has restructured its operations. While the focus is an automotive and tractor divisions most of the other business including IT, Infrastructure and financial services have been hired off into new ventures.<br />Mr. Anand Mahindra is a member of the class of 1977 Harvard College, Cambridge; mustache sets form where he graduated manger cum laude (high honors). In 1981 he secured on MBA from the Harvard business school in Boston after returning the India he joined Mahindra urine steel company ltd.<br /> In 1989 he was appointed president and deputy-managing director of MUSCO. In April 1997, he moved over to M and M as the deputy- managing director. In April 1997, he was appointed as the managing director by the board of M and M. Mr. Mahindra was also the co promoter and is the chairman of total Mahindra finance ltd. Mr. Mahindra writes frequently on business and general economic subject is leading business and Business magazines.<br />2.6 Mahindra Tractor Histories<br /> From army vehicles to farm tractors to major automobile manufacturing, Mahindra's relationship with American industry goes back quite a few years. American GI's who served in India during World War II recognize our parent company, Mahindra & Mahindra, which in l945 was selected to assemble the famous Willis Jeep.<br />Following Indian independence in 1947, Mahindra & Mahindra charted a course of product expansion and globalization. The philosophy led to the company's entrance into the worldwide tractor.<br />In 1962, M&M formed a joint venture with International Harvester to make tractors carrying the name Mahindra name-plate for the Indian market. Armed with engineering, tooling and manufacturing know-how gained from this relationship, M&M-a major auto maker- developed its first tractor, the B-275. This successor to International Harvester's incredibly popular B-414 is still the basis for some current Mahindra models. Today, Mahindra is the third largest tractor manufacturer in the world with sales of nearly 85,000 units annually in 10 countries. This places them ahead of John Deere & Kubota. In India, Mahindra has been the number one selling brand since 1983.<br />2.7 Overview<br />The Mahindra Group’s Farm Equipment Sector has a significant presence across six continents. It is among the top five tractor brands in the world, with its own state of the art plants in India, USA, China and Australia, and a capacity to produce 1,50,000 tractors a year. The Group has a network of 800 dealers worldwide.<br />In the domestic business, the Farm Equipment Sector has had an unparalleled market leadership for the last 24 years. It is the largest producer of tractors in India. The international operations of the Farm Equipment Sector are spread across six continents. It has state of the art manufacturing plants in India, USA, China and Australia.<br />Mahindra Gujarat Tractor, acquired by Mahindra & Mahindra from the Government of Gujarat in 1999 is the oldest running tractor unit in the country. The Mahindra Group has a 60% stake and the balance 40% is with the Government of Gujarat.<br />Mahindra Agribusiness* integrates the food chain by providing quality inputs and farm solutions to post harvest management of high value farm produce. The Company’s core business is to provide supply chain services to organized retail, to both export and domestic markets for fresh fruits and vegetables as well as to the food processing industry.<br />2.8 Domestic Operations<br />The Mahindra Group’s Farm Equipment Sector is the largest producer of agricultural tractors in India. It has enjoyed an unparalleled market leadership in the domestic market for the last 23 years. With a 30% market share, the Bhoomiputra, Sarpanch and Arjun brands of tractors make the Group’s Farm Equipment Sector present in all the major segments in India. Mahindra & Mahindra recently consolidated it position as the leader of the Indian tractor industry when it acquired 43% stake in Punjab Tractors, the owner of the leading Swaraj brand of tractors.<br />It has a large customer base of 12, 00,000 satisfied customers and the deepest distribution reach. The Sector has four manufacturing facilities in India, located in Mumbai and Nagpur in Maharashtra, Rudrapur in Uttaranchal and Jaipur in Rajasthan. The Farm Equipment Sector has always been a process driven organization with a strong focus on its quality systems. The TQM movement in the Sector has brought accolades like the most coveted Deming Application Prize, making it the first tractor company in the world to win recognition of this stature.<br />2.9 Overseas Operations<br />With headquarters at Tomball (Texas), Mahindra USA is a wholly owned subsidiary of Mahindra & Mahindra. Over the years, Mahindra USA has grown by leaps and bounds and has reinforced its position in the Compact and Utility segment. It works hand in hand with a network of hundreds of leading tractor dealers throughout the country to provide its American customers complete product support and quality After Sales Service. The Company has also enhanced its capabilities with another assembly plant and distribution centre in Calhoun (Georgia) and Red bluff (California).<br />Mahindra Australia, based in Brisbane, is a branch of the global farm equipment manufacturer Mahindra & Mahindra. Mahindra Australia currently offers a complete line of 2WD and 4WD Compact and Utility models with an option to have performance matched attachments like Loaders and Mowers.<br />Mahindra China Tractors, a joint venture between the Jiangling Motors Company Group and Mahindra & Mahindra, started operations in July 2005. It will see Mahindra & Mahindra further expanding the product range and developing more tractors for China as well as other overseas markets.<br />2.10 Mahindra Gujarat Tractor Limited<br />Mahindra Gujarat Tractor is the oldest tractor unit in India. Established in 1954 as Hindustan Tractors, it was nationalized in 1978 and subsequently renamed Gujarat Tractor Corporation Limited, with the Government of Gujarat assuming a 100% ownership.<br />A majority stake was acquired by Mahindra & Mahindra in 1999, and the Company underwent yet another change of name: Mahindra Gujarat Tractor Limited. Currently, the Mahindra Group has a 60% stake and the balance 40% is with the Government of Gujarat. It sells about 3000 tractors p.a. under the brand name Shaktimaan and has a manufacturing plant in Baroda.<br />2.11 Mahindra Agribusiness<br />The Mahindra Group established Mahindra Agribusiness* in 2000, with an equity stake from International Finance Corporation (IFC, Washington). Mahindra Agribusiness integrates the agriculture and food chain from agri inputs right through to agri commodities. The Company’s business is to establish agri centers in various districts of the country either under the Mahindra Krishi Vihar franchisee model or directly as Mahindra Agribusiness.<br />Currently, the Company’s operations cover about 100,000 acres across 8 states. Its primary focus is on crops like basmati, maize, barley, cotton, lentils, soybeans, durum, hyola and other oilseeds such as sunflower and mustard. Steps are also being taken to develop the high value segment of Indian farming: contract farming of crops with organic cultivation, aromatic medicinal crops like geranium, patchouli, etc., and other crops like pomegranates, grapes, gherkins, garlic, onions, potatoes as well as crops destined for Organised Retail and for the Seed Industry. Within the agri inputs area, Mahindra Agribusiness has taken a direct initiative in launching its brand of seed potato, wheat, maize, sunflower, groundnut and a range of vegetable seeds as well as agro chemicals. In addition, the Company has also acquired land in Pune to set up a Research & Development facility for seeds and saplings. The development of biofuels, a top priority for an automotive major like Mahindra & Mahindra is another area Mahindra Agribusiness is looking into. Mahindra Agribusiness is the first Indian corporate to be awarded a EUREPGAP certificate as ‘Primary Marketing Organization’ for grapes. The Company has recently taken an initiative in processing and exporting gherkins grown by its farmer network and expects to strongly focus in the area of Supply Chain Management for Modern Retail and processing of horticultural produce out of India.<br />2.12 Mahindra Tractors is one of India’s most innovative companies<br />Mahindra & Mahindra’s Farm Equipment Sector (FES) has featured in the top 10 list of most innovative Indian companies compiled by the Wall Street Journal as part of its survey to determine Asia’s 200 most-admired and innovative companies.<br />The Asia 200 surveys is the ultimate performance review of Asia’s leading companies. The survey takes into account key criteria including long-term vision, innovation in responding to customer needs, quality of products and services, corporate and financial reputation.<br />Innovation is the cornerstone of business at Mahindra Tractors which has pioneered several innovative products and services in the recent past. The Mahindra Shaan is one such product resulting from this culture of innovation. India’s first multi-utility tractor, the Shaan helps in farming activities and facilitates transportation as well. It has been designed keeping in mind the needs of the young and progressive farmer – increased income and pride of ownership resulting from style, comfort and modernity.<br />The Shaan has led innovation in the tractor market and has initiated the transition from a ‘product feature - price’ led business approach to a ‘value-led innovation’ business approach. The product has positively impacted the lives of several customers across the country, facilitating unique uses, such as mobile flour mills, brick kiln operations, vegetable farming and transportation of farm produce, water tanker haulage, transportation of goods and people. <br />In early 2007, Mahindra Tractors launched India’s first 5% bio-diesel tractor which is the outcome of the sector’s relentless focus on R&D and its commitment to a cleaner environment. The utilization of renewable Biodiesel as a fuel for transportation vehicles is one of the significant technologies being developed for automotive application. The Bio-Diesel programmed is one of Mahindra’s investments in India’s sustainable economic development.<br />FES has been the market leader in the Indian tractor Industry for the last 25 years and is historically known for the superior quality of its products and focus on customer centricity. It is also the only tractor company in the world to win both the Deming Application Prize and the Japan Quality Medal, two of the highest quality accolades which can be won by any company.<br />2.13 About the Mahindra Group<br />The US $6.7 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra is the market leader in multi-utility vehicles in India. It made a milestone entry into the passenger car segment with the Logan. Mahindra & Mahindra is the only Indian company among the top tractor brands in the world.<br />The Group has a leading presence in key sectors of the Indian economy, including the financial services, trade, retail and logistics, automotive components, aftermarket, information technology and infrastructure development.<br />Mahindra’s Farm Equipment Sector has recently won the Japan Quality Medal, the only tractor company worldwide to be bestowed this honor. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. The<br />US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its ‘Global 200: The World’s Best Corporate Reputations’ list.<br />2.14 Organization analysis<br />Mission/Vision<br />Vision: Indians are second to none in the world. The founders of our nation and of our company passionately believed this. We will prove them right by believing in ourselves and by making M&M Ltd. known worldwide for the quality of its product and services.<br />Mission: We don’t have a group-wide mission statement. Our core purpose is what makes all of us want to get up and come to work in the morning”<br />Goals and Objectives<br /><ul><li>To provide highly technological innovative product
  12. 12. By 2015 it wants to enter almost all continents of world
  13. 13. Plan to open 30 outlet pan in India by next 4 year
  14. 14. to make the production system even more efficient
  15. 15. To usher prosperity; for its customers, dealers, employees, society and all other stakeholders.
  16. 16. To be the market leader in all power segments of tractors</li></ul>Mahindra and Mahindra Ltd. have tractor manufacturing plants at Mumbai and Nagour in Maharashtra state where a wide range of tractors are produced. M and M’s tractors manufacturing unit at Kandiv is the single urges tractors manufacturing unit in the world it consist of modern machine shops ascertainable line and engine manufacturing facilities. M and M is one of the top four manufacturing of tractor's in the world value terms the plant in Nagpur. Maharashtra also produces a wide area of agricultural implements to soot every sole type and from operation and O.E components.<br />The M and M tractors division to date as produce over 500000 tractors over 5000 of which has been exported to USA, Africa ,Europe, Srilanka, Bangladesh, Vietnam and other countries. Its marketing network spans the Entire globe with representation in most contents around the world. M and M has widest range of tractors among Indian companies.<br />Different tractors models cover disparate market segment form 25 HP to 50 HP tractors for more than a decade. M and M tractors have been market leaders.<br />But M and M is not content with being just a market leader research engines at machines developed a direct in injection tractors engine this gave for Greater fuel efficiency than even before and provided the advantage of an instant could start recently. M and M has “Increased warranty to India” on all its models to 2000 hours of usage or 2 years of service form 1000 hours or 1 year earlier strong emphasis on from continuous product innovation and improvement has helps to sustain our market leadership in the dynamic Indian tractor market. Strong manufacturing facilities backed by a strong R&D capability and a dynamic and customer oriented marketing function. M&M has secured the top position in the " Domestic Tractor Market" .<br />2.15 Mahindra & Mahindra Tractor Sales Rise By 16%:<br />Mahindra & Mahindra announced that its tractor sales for the month of August 2008 stood at 7,000 units as compared to 6011 units for the same period last year, recording a growth of 16.45%. <br />2.16 Exports<br />They exports during August 2008 were 597 units as against 561 units for the same period last year, recording a growth of 6.42%. Total sales (domestic and exports) for the month were 7,597 units, as compared to 6,572 units for the same period last year, recording growth of 15.59%.<br />Cumulatively, during this fiscal, Mahindra & Mahindra tractors sales in the domestic market were 41,455 units as compared to 37,611 units for the April- August quarter last year, recording a growth of 10.22%.<br />Shares of the company declined Rs 5.2, or 0.9%, to settle at Rs 572.85. The total volume of shares traded was 15,411 at the BSE.<br />2.17 Mahindra & Mahindra in India<br />Mahindra & Mahindra ltd. was established in 1962 at Mumbai. The company is India's first large scale project based on totally indigenously & totally indigenous design, know how & technology was promoted by the International Harvester company of U.K. at present the name of owner of the company is Anand G Mahindra.<br />The Mahindra Factory is located at Akurli Road. Mumbai & their implement division are at Nagpur. The factory is among the first to be set up in this Industrial town. Its main marketing Department is at Worli Road, Mumbai.<br />2.18 Growth of the Organization<br />Mahindra & Mahindra Ltd... Consist of 3 divisions.<br />Mahindra tractor Division.<br />Mahindra Jeep Division.<br />LCV Division FORD-ESCORT- MAHINDRA Collaboration.<br /> Mahindra tractor Division started with annual capacity of 500 tractors & with capacity of Rs 400 crores. It went into commercial production in the year 1962 with 35 HP ranges of tractor. At present the annual capacity of Mahindra Tractor division is 8000 tractors & with capacity of Rs 2000 crores.<br />The company is managed by seven Boards of Directors with Secretary, Deputy Manager, and Chairman. The day to day operations are managed by the Managing directors.<br />Having Mahindra established in the Indian Market. Mahindra Tractor Division made a determined starts in 1995-96 year to establish itself in the international market over the years, a large number of Mahindra tractors & implements are operating in many countries like Australia, Pakistan, Brazil, Sri Lanka, and Algeria. It would be very glad that the pure Indian company with Indian technology export tractors & the implements to other countries or foreign countries.<br />Most of the Mahindra Tractors are sold Foreign countries are 30 HP range of Model. But in Indian market 40 HP ranges of tractors is more demand. Mahindra has 728 dealers in the entire country & it has 30 dealers in Karnataka. <br />2.19 Dynamic growth<br /> During the 35 years of its existence, Mahindra tractors division has not only expanded its tractors manufacturing capacity of tractors per annum but also more product in to manufacturing range Mahindra has emerged as a major industrial complex in India. The Mahindra is only one pure Indian company, without any alliance of collaboration with any multinational countries which manufactured the machine tools. Mahindra name is synonymous with the quality machine tools in the major industrial concerns in India. Mahindra was not only manufactured tractors but also manufactured harvesters, combines, forklifts, trucks, agriculture implements and automobile castings. <br /> High technology, sophisticated tool room equipment and modern R&D facilities, including computer aided designs and computerized testing machines, blending with decade of experience of Indian conditions, has resulted in technology relevant to Indian conditions.<br /> The export performance, Mahindra has always been conscious that the quality if its products lie in it acceptable in the world market, entry in export market means, it has to know what sells abroad and it has to design its product according to network in India, which will serve as a major source of competitive advantage.<br />The Indian tractor market is anxiously awaiting the arrival of global tractor giants like John Deere, New- Holland, Same, the existing players have also enhanced their product volumes, models range and quality. In this highly competitive market- driven scenario, the complete purchase process shall focus around the customer needs. At these crucial juncture, there shall be used to plan a series of multiple activities to gear up all over business processes to face the future market where in we envisage that “the customer will be king” and that “customer satisfaction” shall be the prime consideration for all over systems<br />Mahindra Tractors, also known as Mahindra & Mahindra Limited - an Indian automobile company, is one of the largest tractor manufacturers in the world. Mahindra entered the U.S. tractor market in 1994, and currently has two assembly and distribution centers in the United States.  Mahindra was used at the end of World War II to assemble the Willy’s Jeep for American soldiers in India.  Mahindra then later entered the world wide tractor market in 1947, after India’s independence.<br />Mahindra actually developed its first tractor through the help of International Harvester through a joint venture dating back to 1963.  Some of the Mahindra tractor models are still based upon the IH B-414 successor.  Mahindra has also done a joint venture with Ford Motor Company in 1995.<br />M&M had posted excellent results for the year ended 31st March 2004. Gross sales from operations at Rs 5,914 crores was up by 31.5%, while profit after tax (PAT) at Rs 348.5 crore was up by 139%, from that posted in 2002-03.<br />A total of 41,135 tractors were sold in July 2008 to March 2009 as compared to 37,096 units in the same period of last fiscal year. <br />2.20 M&M Ltd. Tractors record 19% growth in Sales in June 2009<br />Mumbai Tuesday July 1, 2009.<br />Mahindra & Mahindra’s Farm Equipment Sector (FES), a part of the U.S. $6.7 billion Mahindra Group, significantly consolidated its leadership position in the tractor industry in June 2008. <br />For the month of June 2008, domestic sales of tractors of Mahindra & Mahindra Ltd. were 11054 nos., a growth of 16% and exports during the month were 954 nos., a growth of 69% over the corresponding month last year. Total sales for the month were 12008 nos., a growth of 19% over the corresponding month last year. <br />M&M is the third largest tractor company in the world. It is also the largest manufacturer of tractors in India with sustained market leadership of around 25 years. It designs, develops, manufactures and markets tractors as well as farm implements. <br />Mahindra & Mahindra grew from being a maker of army vehicles to a major automobile and tractor manufacturer. It has acquired plants in Chinaand the United Kingdomand has three assembly plants in the USA. M&M has partnerships with international companies like Renault SA, France and International Truck and Engine Corporation, USA.<br />2.21 Distribution Network<br />The company has not only contributed by supplying a large number of tractors to the Indian farmers but has also ensured proper backup services to help them operate. Mahindra has a large network of sales, service, first aid centers &space parts dealers spread throughout the length & a breadth of the country.<br />Mahindra has 728 dealers in the entire country. It has main dealers in Karnataka. It is because of these well spread out facilities. That ensures minimum downing time of the tractors. The dealership have well equipped workshops having special tools and equipment, field service motor- cycles to ensure prompt service is rendered at the door steps of the farmer.<br />The demand of tractors in Indian market is generally as below<br />ModelsPercentage of Demand.475-DI40275-DI20B-275-DI30OTHERS10TOTAL100<br /> The above table shows in the below diagram.<br />2.22 Mahindra USA, Inc.<br />In 2002, Mahindra USA completed a major expansion of its Tomball (Houston Area), Texas headquarters. They tripled the size of the parts warehouse and the production assembly lines. In 2003, a second assembly and distribution center was established in Calhoun, Georgia.<br />In 2004, a separate, much larger parts warehouse was put into operation outside of Houston, Texas, to keep up with the huge growth of Mahindra tractor sales in the U.S.A...Final assembly takes place here in the U.S.A. where we conduct a 51-point pre-delivery inspection, including dynamometer and road test<br />Comparison with Competitive Companies<br />Comparison of stock market performance of different brands:-<br />COMPANY NAMEPRICEN/PCASH PROFITEicher16.583.31183.4M&M91183.04236.78Ford117.5180.7522.2Escort245.07541.33157.77<br /> The above comparison shows in the following diagram.<br />2.23 Profile of Sri Ganesh Agro Tractors<br />Brief History of Dealer<br />Sri Ganesh Agro Tractors is started in the year 2009 and registered under partnership Act of 1932. Mr. Sathish Gowda, Mr. Darmegowda is the partners of Sri Ganesh Agro Tractors. <br />The showroom of M&M tractors is situated in B.M. Road, Opp: Govt. First Grade College, Channarayapatna-573116. The showroom sports a uniform look and the service station is situated behind the show room. The service station area however upgraded as per company specification.<br />Mr. Sathish Gowda and Mr. Darmegowda are very good dealers in Hassan area. They are also having a skill of marketing. Mr. Naveen S. Kaggere the manager of the company, who is looking after all sales and services of the firm. He has very good tractor mechanic in Hassan area. He is also having a skill of marketing of tractors. <br />In the beginning the firm initial capital was 62 lakh rupees and sale of the tractor is 15 per month. The firm started to deal with Mahindra tractors & implements and spare parts of the Mahindra tractors in the range 25 hp,30hp,33hp 36hp,40 hp.50 hp ,with regard to 225-DI,265-DI,365-DI,275-DI,B-275, 475-DI,585-DI respectively. There is a large demand for the 295,275,475,575 tractors as other range of tractors.<br /> 2.24 Infrastructure Facilities<br />Land and building:<br /> The firm is having its own building. The office covers an area of 4125.0 square feet, East- west 75" feet, North-south 55 feet.<br /><ul><li>Power:
  17. 17. The electric power requirement of the firm is of 150 to 250 unit’s pm. The electric power consumer by the firm’s showroom is about 100 units and service attain like water washing of vehicles etc., take the power consumption of 100 to 150 units. </li></ul>Machinery: <br />The firm is well equipped machines and tools are used in services facilities to vehicle the value of tools is the firm more than Rs. 1, 50,000.<br /><ul><li>Recruited staff of the firm:
  18. 18. General Manager.
  19. 19. Sales manager.
  20. 20. Workshop manager.
  21. 21. Spares manager.
  22. 22. Accounts staff.</li></ul>Man power:<br />The firm has sufficient staff. There are 22 members working in the showroom. There are 16 foremen working in the service station.<br /><ul><li>Advertisement:
  23. 23. Advertisement is the main aims for create demand for the product in the mind of the customer and improve the competitive strength. The dealer is advertisement its vehicles through various media such as local news paper and states news papers, magazines etc.</li></ul>2.25 Organization Structure<br />ProprietorOrganization Structure of Sri Ganesh Agro Tractors with Special Regard to Sales<br />Manager<br />HelperAccountantSpare SupervisorsClerkJr. MechanicForemanOffice In chargeSales ExecutiveSupervisor<br />Helper<br />The service station is situated at the back side of the show room so that they can provide timely repairs, and other service like wash services, wheel alignment, oil change etc to the customers within time. They also provide after sales services like free services up to one year of purchase and demonstrations...etc. The place of purchase and place of service are situated at the same place and it would be economical to the customers as well as the service providers.<br />2.26 Demands for the Product<br /> Generally the market is a medium to secure certain volume of sales. It is mainly interested in the demand side of the market. Market consists of individuals and group of people institution and corporate bodies, their needs, their resources, their buying habits and their preferences. The success of the marketing is also depends on the ability to forecast the strength and character of demand as it is the basis for allocation of resources in business.<br /> There are three variable factors that relate to tractors in market demand, that is demographic variables (population pattern) to ascertain size of demand, effective demand (purchasing power) to ascertain potential demand life style pattern of the customers.<br />2.27 Company Demand<br />Company demand is volume of sales expected under given environmental conditions for a specific time. It is function of firm strategies marketing effort and specific the amount of sales turnover which would be realized by a company under different levels of company’s selling efforts. It is the market share of a company.<br /> Mahindra tractors are one of the main products of Mahindra and Mahindra ltd., this company is having collaboration with many foreign companies. But now it is indigenous in manufacturing Mahindra.<br />2.28 Following points affect increased demand for Mahindra tractors<br />Manufacturing tractors by incorporating the best technology available.<br />Superior quality of raw material used in production.<br /> Tractors having good specification when compared to other tractors.<br /> Good service given by the agency to customers after sale tractors.<br />2.29 Marketing Mix<br />Marketing of Mahindra tractors by Sri Ganesh Agro Tractors<br />Sri Ganesh Agro Tractors are one of the leading dealers of Mahindra & Mahindra tractors. The firm has commenced marketing of Mahindra tractors since 2009. The firm has to face many difficulties in the beginning to create primary demand for tractors. Today it is very popular through the salesman and advertisement. The salesman travels through the several villages in Channaraypatna taluk.<br /> Modern Marketing refers to all those activities involved identifying the present and potential requirement of the consumers for goods and services and in securing the distribution of those goods and services form the centers of production to place where these are wanted and at a time they are wanted. Therefore modern marketing is failed to be consumer oriented and it begins before production and also succeeds production.<br />2.30 Product Profile<br />Ranges of tractors are, <br />Mahindra -265-DI of 30 HP.<br />Mahindra -295-DI of 35 HP.<br />Mahindra - 275-DI of 36 HP.<br />Mahindra - 475-DI of 40 HP.<br />Mahindra - 475-DI of 42 HP.<br />Mahindra - 575-DI of 45 HP.<br />Mahindra - 595-DI of 52 HP.<br /> Mahindra -605 Arjun 56HP.<br />TRACTOR SPARE PARTS:-<br />There are so many parts of tractors, they are;-<br />Intake manifold winter related parts.<br />Oil pump and oil pan.<br />Oil fitter and related parts.<br />Manifold as export system.<br />Crank shaft fly wheel and related parts.<br />Dual range and speed transmission gear.<br />Powers take of an assembly.<br />Clutch control.<br />Clutch assembly.<br />Radio and related parts.<br />Water pumps parts.<br />Fuel system<br />Injection assembly.<br />Air cleaner assembly.<br />Throttle controls.<br />Fuel Injection pump.<br />Injection pumps governor. <br />Fuel filters assembly.<br />8-Speed transmission gearshift leaver and related parts.<br />Hydraulic lift cover.<br />Hydraulic cylinder.<br />Hydraulic shaft.<br />Hydraulic system<br />Hydraulic linkage and related parts.<br />Hydraulic pump assembly.<br />Flow control value and related parts.<br />Center housing and related parts.<br />Differential locks linkage parts.<br />Rare and differential related parts.<br />Steering gear assembly.<br />Electrical system of R.H and L.H.<br />Gear right and wringing. Battery and Battery support.<br />Storing motor drive and relay assembly.<br />Deluxe seal assembly.<br />Front wheel assembly.<br />Standard rear wheels.<br />Break and break controller.<br />Front oxlestreeing and related parts.<br />2.30.1 MAHINDRA SARPANCH 265DI: 30 HP<br />ENGINE:<br />Type:MDI 1895<br />Horse Power:30 HP<br />No. of Cylinders:3<br />Displacement:1892 CC<br />Rated RPM:2300 RPM<br />Air Cleaner:3 stage oil bath with Pre-cleaner<br />Cooling System:Water cooled<br />TRANSMISSION:<br />Type:Sliding Mesh<br />No. of Gears:8F + 2R<br />CAPACITY:<br />Fuel Tank:55 Ltrs.<br />Engine oil sump:6 Ltrs.<br />Cooling System:7.95 Ltrs.<br />Transmission case:23 Ltrs.<br />Hydraulics:11.5 Ltrs.<br />DIMENSION:<br />Max. Length:3200 M.M<br />Max. Height:2195 M.M<br />Wheel Base:1836 M.M<br />Weight:1820 K.G. (With full of Fuel, Oil and Water)<br />2.30.2 MAHINDRA SARPANCH 575DI: 45 HP<br />ENGINE:<br />Type:MDI 2500<br />Horse Power:45 HP<br />No. of Cylinders:4<br />Displacement:2523 CC<br />Rated RPM:2300 RPM<br />Air Cleaner:3 stage oil bath with Pre-cleaner<br />Cooling System:Water cooled<br />TRANSMISSION:<br />Type:Partial Constant Mesh<br />No. of Gears:8F + 2R<br />CAPACITY:<br />Fuel Tank:55 Ltrs.<br />Engine oil sump:7.8 Ltrs.<br />Cooling System:7.95 Ltrs.<br />Transmission case:23 Ltrs.<br />Hydraulics:11.5 Ltrs.<br />DIMENSION:<br />Max. Length:3190 M.M<br />Max. Height:2195 M.M<br />Wheel Base:1910 M.M<br />Weight:1860 K.G. (With full of Fuel, Oil and Water)<br />2.30.3 MAHINDRA SARPANCH 475DI: 42 HP<br />ENGINE:<br />Type:MDI 2385<br />Horse Power:42 HP<br />No. of Cylinders:4<br />Displacement:2523 CC<br />Rated RPM:2300 RPM<br />Air Cleaner:3 stage oil bath with Pre-cleaner<br />Cooling System:Water cooled<br />TRANSMISSION:<br />Type:Partial Constant Mesh<br />No. of Gears:8F + 2R<br />CAPACITY:<br />Fuel Tank:55 Ltrs.<br />Engine oil sump:7.8 Ltrs.<br />Cooling System:7.95 Ltrs.<br />Transmission case:23 Ltrs.<br />Hydraulics:11.5 Ltrs.<br />DIMENSION:<br />Max. Length:3190 M.M<br />Max. Height:2195 M.M<br />Wheel Base:1910 M.M<br />Weight:1820 K.G. (With full of Fuel, Oil and Water)<br />2.30.4 MAHINDRA BHOOMIPUTHRA 265 DI<br />ENGINE:<br />Type:MDI 1895<br />Horse Power:30 HP<br />No. of Cylinders:3<br />Displacement:1892 CC<br />Rated RPM:2300 RPM<br />Air Cleaner:3 stage oil bath with Pre-cleaner<br />Cooling System:Water cooled<br />TRANSMISSION:<br />Type:Sliding Mesh<br />Max. Speed- Front:29.25 KMPH<br />Max. Speed- Back:12.2 KMPH<br />CAPACITY:<br />Fuel Tank:45 Ltrs.<br />HYDRAULICS:<br />Max. Weight Carried:1000 KG<br />Lower Link:External Check Chen with Cat II<br />Steering:Mechanical <br />2.30.5 MAHINDRA BHOOMIPUTHRA 475 DI<br />ENGINE:<br />Type:MDI 2500<br />Horse Power:42 HP<br />No. of Cylinders:4<br />Displacement:2523 CC<br />Rated RPM:2300 RPM<br />Air Cleaner:3 stage oil bath with Pre-cleaner<br />Cooling System:Water cooled<br />TRANSMISSION:<br />Type:Sliding Mesh<br />Max. Speed- Front:30.48 KMPH<br />Max. Speed- Back:12.72 KMPH<br />CAPACITY:<br />Fuel Tank:45 Ltrs.<br />HYDRAULICS:<br />Max. Weight Carried:1000 KG<br />Lower Link:External Check Chen with Cat II<br />Steering:Mechanical <br />2.30.6 MAHINDRA BHOOMIPUTHRA 575 DI<br />ENGINE:<br />Type:MDI 2500<br />Horse Power:45 HP<br />No. of Cylinders:4<br />Displacement:2523 CC<br />Rated RPM:2300 RPM<br />Air Cleaner:3 stage oil bath with Pre-cleaner<br />Cooling System:Water cooled<br />TRANSMISSION:<br />Type:Sliding Mesh<br />Max. Speed- Front:29.76 KMPH<br />Max. Speed- Back:12.42 KMPH<br />CAPACITY:<br />Fuel Tank:45 Ltrs.<br />HYDRAULICS:<br />Max. Weight Carried:1640 KG<br />Lower Link:External Check Chen with Cat II<br />Steering:Mechanical <br />2.30.7 MAHINDRA SARPANCH 595 DI SUPER TURBO: 52 HP<br />ENGINE:<br />Type:MDI 3000 TC<br />Horse Power:52 HP<br />No. of Cylinders:4<br />Displacement:2523 CC<br />Rated RPM:2100 RPM<br />Air Cleaner:Dry air cleaner with Pre-cleaner<br />Cooling System:Water cooled<br />TRANSMISSION:<br />Type:Concentrate Mesh<br />No. of Gears:8F + 2R<br />CAPACITY:<br />Fuel Tank:55 Ltrs.<br />Engine oil sump:9.4 Ltrs.<br />Cooling System:7.95 Ltrs.<br />Transmission case:25 Ltrs.<br />Hydraulics:11.5 Ltrs.<br />DIMENSION:<br />Max. Length:3650 M.M<br />Max. Height:2180 M.M<br />Wheel Base:1970 M.M<br />Weight:2160 K.G. (With full of Fuel, Oil and Water)<br />2.30.8 MAHINDRA ARJUN 605 <br />ENGINE:<br />Model:NE 457<br />Horse Power:56 HP<br />No. of Cylinders:4<br />Displacement:3193 CC<br />Rated RPM:2100 RPM<br />Air Cleaner:Dry air cleaner with Clog Indicator<br />TRANSMISSION:<br />Type:Full constant mesh with Neutral safety switch<br />No. of Gears:8F + 2R<br />CAPACITY:<br />Fuel Tank:65 Ltrs.<br />Max. Weight carried:1800 KG<br />Lower link:CAT II size<br />DIMENSION:<br />Max. Length:3531 M.M<br />Max. Width:1996 M.M<br />Wheel Base:2120 M.M<br />2.30.9 MAHINDRA ARJUN 555 <br />ENGINE:<br />Model:NE 452<br />Horse Power:52 HP<br />No. of Cylinders:4<br />Displacement:3054 CC<br />Rated RPM:2100 RPM<br />Air Cleaner:Dry air cleaner with Clog Indicator<br />TRANSMISSION:<br />Type:Full constant mesh with Neutral safety switch<br />No. of Gears:8F + 2R<br />CAPACITY:<br />Fuel Tank:65 Ltrs.<br />Max. Weight carried:1800 KG<br />Lower link:CAT II size<br />DIMENSION:<br />Max. Length:3480 M.M<br />Max. Width:1940 M.M<br />Wheel Base:2120 M.M<br />2.31 SWOT analysis<br />Strengths:   <br /><ul><li>Market leader in terms of market share is its biggest strength.
  24. 24. It has large and effective distribution channel.
  25. 25. M&M has sufficient financial resources. </li></ul>Over the years the company has emerged as one of the top players in the world in terms of number of tractors sold. This gives a clear indication that the company's market share is one of its biggest strengths.<br />The company's ability to introduce new products in the market and to generate sales from those new products is a major strength. The reason being that this is very essential for any company, for its survival in the long run.<br />Brand name and brand image.<br />The company has established its brand name in other countries of the world as well. It has a wide market spreading over the five continents. This is evident from the 40% market share that it holds in the 30-40 HP tractors market in the US.<br />Weaknesses:             <br />The company is highly dependent on the rural sector.<br />Less technological ability as compared to foreign players.<br />Low labor productivity.<br />Opportunities:<br />The government has been trying to strengthen the exports of agricultural products. As a result, the quality of agricultural products necessarily has to be very high. For this, they need better rural and agricultural infrastructure. This might result in an increase in demand for tractors.<br />In India, the penetration of tractors is 10 tractors per 1000 hectares of cropped area, which is much below the world average of 19 tractors for the same. Thus there is scope for the demand to increase. <br />Threats:<br />                      <br />The company has a history of having invested in unrelated diversifications such as telecom, holiday and resort inns, financial services, etc. which it has hived off as subsidiaries from time to time when these turned unmanageable. This is a cause for concern as such diversifications could divert the company's attention from its core business. It is a dangerous tendency as it leads to destruction of shareholders value.<br />The entry of foreign players in the tractors segment could pose a threat to the company as these foreign players are technically more competitive than Mahindra & Mahindra.<br />CHAPTER - III<br />Review of Literature<br />3. Brand<br />A brand is a name used to identify and distinguish a specific product, service, or business. A legally protected brand name is called a proprietary name.<br />3.1 History<br />The word " brand" is derived from the Old Norse brandr, meaning " to burn." It refers to the practice of producers burning their mark (or brand) onto their products.<br />Although connected with the history of trademarks and including earlier examples which could be deemed " proto brands" (such as the marketing puns of the " Vesuvinum" wine jars found at Pompeii), brands in the field of mass-marketing originated in the 19th century with the advent of packaged goods. Industrialization moved the production of many household items, such as soap, from local communities to centralized factories. When shipping their items, the factories would literally brand their logo or insignia on the barrels used, extending the meaning of " brand" to that of trademark.<br />Bass & Company, the British brewery, claims their red triangle brand was the world's first trademark. Lyle’s Golden Syrup makes a similar claim, having been named as Britain's oldest brand, with its green and gold packaging having remained almost unchanged since 1885.<br />Cattle were branded long before this; the term " maverick" , originally meaning an unbranded calf, comes from Texas rancher Samuel Augustus Maverick who, following the American Civil War, decided that since all other cattle were branded, his would be identified by having no markings at all. Even the signatures on paintings of famous artists like Leonardo Da Vinci can be viewed as an early branding tool.<br />Factories established during the Industrial Revolution introduced mass-produced goods and needed to sell their products to a wider market, to customers previously familiar only with locally-produced goods. It quickly became apparent that a generic package of soap had difficulty competing with familiar, local products. The packaged goods manufacturers needed to convince the market that the public could place just as much trust in the non-local product. Campbell soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker Oats were among the first products to be 'branded', in an effort to increase the consumer's familiarity with their products. Many brands of that era, such as Uncle Ben's rice and Kellogg's breakfast cereal furnish illustrations of the problem.<br />Around 1900, James Walter Thompson published a house ad explaining trademark advertising. This was an early commercial explanation of what we now know as branding. Companies soon adopted slogans, mascots, and jingles that began to appear on radio and early television. By the 1940s, manufacturers began to recognize the way in which consumers were developing relationships with their brands in a social/psychological/anthropological sense.<br />From there, manufacturers quickly learned to build their brand's identity and personality (see brand identity and brand personality), such as youthfulness, fun or luxury. This began the practice we now know as " branding" today, where the consumers buy " the brand" instead of the product. This trend continued to the 1980s, and is now quantified in concepts such as brand value and brand equity. Naomi Klein has described this development as " brand equity mania" . In 1988, for example, Philip Morris purchased Kraft for six times what the company was worth on paper; it was felt that what they really purchased was its brand name.<br />Marlboro Friday: April 2, 1993 - marked by some as the death of the brand - the day Philip Morris declared that they were to cut the price of Marlboro cigarettes by 20%, in order to compete with bargain cigarettes. Marlboro cigarettes were notorious at the time for their heavy advertising campaigns, and well-nuanced brand image. In response to the announcement Wall street stocks nose-dived for a large number of 'branded' companies: Heinz, Coca Cola, Quaker Oats, PepsiCo. Many thought the event signaled the beginning of a trend towards " brand blindness" (Klein 13), questioning the power of " brand value" .<br />3.2 Concepts<br />Brand is the image of the product in the market. Some people distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service.<br />People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called integrated marketing.<br />Careful brand management seeks to make the product or services relevant to the targeted audience. Therefore cleverly crafted advertising campaigns, can be highly successful in convincing consumers to pay remarkably high prices for products which are inherently extremely cheap to make. This concept, known as creating value, essentially consists of manipulating the projected image of the product so that the consumer sees the product as being worth the amount that the advertiser wants him/her to see, rather than a more logical valuation that comprises an aggregate of the cost of raw materials, plus the cost of manufacture, plus the cost of distribution. Modern value-creation branding-and-advertising campaigns are highly successful at inducing consumers to pay, for example, 50 dollars for a T-shirt that cost a mere 50 cents to make, or 5 dollars for a box of breakfast cereal that contains a few cents' worth of wheat.<br />Brands should be seen as more than the difference between the actual cost of a product and its selling price - they represent the sum of all valuable qualities of a product to the consumer. There are many intangibles involved in business, intangibles left wholly from the income statement and balance sheet which determine how a business is perceived. The learned skill of a knowledge worker, the type of metal working, the type of stitch: all may be without an 'accounting cost' but for those who truly know the product, for it is these people the company should wish to find and keep, the difference is incomparable. Failing to recognize these assets that a business, any business, can create and maintain will set an enterprise at a serious disadvantage.<br />A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. One goal in brand recognition is the identification of a brand without the name of the company present. For example, Disney has been successful at branding with their particular script font (originally created for Walt Disney's " signature" logo), which it used in the logo for go.com.<br />Consumers may look on branding as an important value added aspect of products or services, as it often serves to denote a certain attractive quality or characteristic (see also brand promise). From the perspective of brand owners, branded products or services also command higher prices. Where two products resemble each other, but one of the products has no associated branding (such as a generic, store-branded product), people may often select the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner.<br />3.3 Brand building tools<br />There are various tools used by the marketers to build their brands. In early days, TV advertisement was the most effective brand building tool. There were very few TV channels and people watched movies and ads with equal interest. Nowadays, most of the viewers are ignoring the ads. In fact, many more are simply not watching TV or switched to internet and other recreational activities. So the major challenge to the marketers is to use effective tools, in order to attract the attention of the consumers to their brands.<br />Some of the important brands building tools are: <br />Public relations 2. Press releases 3. Sponsorships <br />4. Corporate websites 5. Exhibitions 6. Event marketing <br />7. Public facilities 8. Online advertisements 9. Broadcast media<br />3.4 Brand Awareness<br />Brand awareness is a marketing concept that measures consumers' knowledge of a brand's existence. At the aggregate (brand) level, it refers to the proportion of consumers who know of the brand. <br />The likelihood, that consumers recognize the existence and availability of a company's product or service. Creating brand awareness is one of the key steps in promoting a product. <br />3.5 Investopedia explains<br />Brand awareness is an important way of promoting commodity-related products. This is because for these products, there are very few factors that differentiate one product from its competitors. Therefore, the product that maintains the highest brand awareness compared to its competitors will usually get the most sales. For example, in the soft drink industry, very little separates a generic soda from a brand-name soda, in terms of taste. However, consumers are very aware of the brands Pepsi and Coca Cola, in terms of their images and names. This higher rate of brand awareness equates to higher sales and also serves as an economic moat that prevents competitors from gaining more market share. <br />Brand awareness refers to customers' ability to recall and recognize the brand under different conditions and link to the brand name, logo and jingles and so on to certain associations in memory. It helps the customers to understand to which product or service category the particular brand belongs to and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products.<br />3.6 How do customers remember?<br />The tendency of a brand to be thought of in a buying situation is known as “brand salience”. Brand salience is “the propensity for a brand to be noticed and/or thought of in buying situations” and the higher the brand salience the higher it’s markets penetration and therefore its market share. Salience refers not to what customers think about brands but to which ones they think about.<br />Brands which come to mind on an unaided basis are likely to be the brands in a customer’s consideration set and thus have a higher probability of being purchased. Advertising weight and brand salience are cues to customers indicating which brands are popular, and customers have a tendency to buy popular brands. Also, an increase in the salience of one brand can actually inhibit recall of other brands, including brands that otherwise would be candidates for purchase.<br />It is widely acknowledged that buyer’s do not see their brand as being any different from other brands that are available. They buy a particular brand because they are more aware of it, not because it is more distinctive, or has a point of difference. We now know that all decisions made by humans involve memory processes to a greater or lesser extent. Incoming information from the external environment travels by the sensory memory into the short-term (or working) memory (STM) but if it is not acted upon in a very short time the brain simply discards it.<br />But salient information that is important and received on a regular basis through different channels is passed to the long-term memory (LTM) where it can be stored for many years. Memories are stored or filed via connections between new and existing memories in the different parts of the memory. They are laid down in a framework making some memories easier to access than others. Recall is the process by which an individual reconstructs the stimulus itself from memory, removed from the physicality’s of that reality.<br />3.7 Seven Ways to Build Brand Awareness<br />To some, branding might not feel like a tangible aspect of running a business. It can’t be seen like a product on the shelf, or counted like a cash drawer at the end of the night. But, branding is the reason people pay three times more for a product at one store over another.<br />Good branding is the product of a clear vision, and nobody knows more about vision than small business owners. But, with limited resources, creating a brand identity can be tricky. Fortunately, building brand awareness on the Internet doesn’t need to take a lot of money or resources.<br />Here are seven strategies to build business brand:<br />1. Define the vision. Before moving ahead with the web site, create a brand positioning statement. “This isn’t just, ‘What kind of web site do we want to be?’ This is ‘Who are we?’” says Harley Manning, vice president at Forrester Research in Cambridge, Mass., a technology and market research firm that advises on the effects technology has on consumers and businesses. Good brand statements typically include the company’s mission, vision and values. “It’s succinct. It’s typically something that will fit on a page easily,” he says.<br />2. Build a brand worth believing in. “Do you so believe in what you’re creating that you would trademark it?” says Andrea Fitch, president and CEO of Red Carpet Creations, Inc., and national president of the Society for Marketing Professional Services, both based out of Alexandria, Va. Really consider what kind of brand could represent the business through the next decade. “Don’t have a logo that in five years you’re going to be tired of and discard for another,” she says. <br />3. Remember, the web site is the brand. “A web site is not just a communication medium,” Manning says. “It is actually a channel that must deliver on the promise.” Essentially, a web site should embody the promise that it makes to customers. If, for instance, a business claims to be innovative, the web site should look fresh and modern. <br />4. Create a cohesive experience between all mediums. Before she launched her company’s new web site, Fitch made sure it would be an event that her potential clients would never forget. Red Carpet Creations mailed 4,000 silver tubes containing scrolls that looked like rolled-up carpet. Inside the scrolls was an announcement about the web site’s launch. Once online, the web site was an extension of the invitations because it followed through on the themes of red carpet imagery and references to visitors being treated like a VIP. Customers should easily be able to recognize the company’s brand, whether it is print, online or some other form of media, Manning says.<br />5. Don’t sacrifice creativity. Once the brand’s guidelines are established, creative choices must bring those attributes to life, Manning says. Don’t let the company’s brand become so dominating that there is no room for new thoughts and ideas. Brand should be the jumping-off point for interesting ideas, not the place where every new idea dead-ends. Fitch stresses that a sense of fun and whimsy will only enhance the likelihood that people will take an interest in the web site.<br />6. Don’t communicate brand at the expense of delivering. While a web site can be a significant tool for building brand awareness, clarity and functionality are paramount. “Just be careful not to let the communication about your brand get in the way of delivering your message,” Manning says. People should be able to understand how to navigate the site without knowing a thing about the company’s catch phrases. “You can’t frustrate and annoy people into liking your brand,” he says.<br />7. Listen to the customers: They determine a brand’s true value. Pay attention to customer feedback about the site because, ultimately, it’s the customers’ opinion that counts. When it comes to building a brand, a company can incorporate everything from signature colors to catch phrases, but at the end of the day, it’s the consumer who decides what a brand is really worth. <br />3.8 Creating Brand Awareness<br />Awareness is a critical asset when building up market brand equity – one which, by itself, can offer exceptional short-term value. Unfortunately, awareness alone does not build brand equity. Conversely, brand equity cannot exist without awareness. <br />Defined as the level at which your customers and prospects are familiar with your brand, awareness is the most tangible and easily measured of the five brand assets. It is also the brand asset most commonly used as a standard by which to determine the effectiveness of marketing efforts. Unfortunately, building awareness today has become increasingly more challenging due to extensive media and market fragmentation. <br />Peter Sealy, an adjunct professor at UC Berkley, contrasts the more accessible media markets of nearly 40 years ago with the intensely fragmented media markets of the 21st century: In 1965, Proctor & Gamble could successfully reach 80 percent of their primary target audience (18 to 49 year-old women) with three 60-second commercials aired during primetime on the three major networks. <br />In contrast, today’s cluttered and fragmented media would require 97 primetime commercials to attain the same outcome. Since the primetime scenario of the 21st century is out of the financial reach of all but the largest brands, successfully building awareness for up market brands requires both insight and innovation. <br />There are numerous examples of brands that have been successful at building awareness using unusual media strategies, such as Ketel One Vodka (buzz marketing), Amazon.com (public relations), America Online (direct mail), E-Trade (internet marketing), as well as many other notable names. <br />It is important, however, to remind ourselves that awareness alone does not lead to brand equity. There are many short-lived awareness success stories (Fruitopia, Pets.com, Avia, Zima and American Ski Company, to name a few) that have illustrated that it is indeed possible to achieve a high level of awareness for a product or service, while in turn establishing only a low level of brand equity and thus killing the brand. <br />Clearly, before investing substantial financial resources to build a brand’s awareness, careful consideration of the influence exerted by the other brand assets (quality, identity, preference and loyalty) is critical. A carefully orchestrated asset-driven branding program can assure that today’s awareness helps to build tomorrow’s equity. <br />3.9 Measurement driven conceptualization<br />Brand awareness can be measured by showing a consumer the brand and asking whether or not they knew of it beforehand. However, in common market research practice a variety of recognition and recall measures of brand awareness are employed all of which test the brand name's association to a product category cue, this came about because most market research in the 20th Century was conducted by post or telephone, actually showing the brand to consumers usually required more expensive face-to-face interviews (until web-based interviews became possible). This has led many textbooks to conceptualize brand awareness simply as its measures, that is, knowledge that the brand is a member of a particular product category, e.g. soft-drinks. Examples of such measures include:<br />Brand recognition - Either the brand name or both the brand name and category name are presented to respondents. <br />Brand recall - the product category name is given to respondents who are asked to recall as many brands as possible that are members of the category. <br />Top of mind awareness - as above, but only the first brand recalled is recorded (also known as spontaneous brand recall). <br />3.10 Research on metrics<br />There has been discussion in industry and practice about the meaning and value of various brand awareness metrics. Recently, an empirical study appeared to put this debate to rest by suggested that all awareness metrics were systematically related, simply reflecting their difficulty, in the same way that certain questions are more difficult in academic exams.<br />3.11 Brand recall<br />Brand Recall is the extent to which a brand name is recalled as a member of a brand, product or service class, as distinct from brand recognition.<br />Common market research usage is that pure brand recall requires " unaided recall" . For example a respondent may be asked to recall the names of any cars he may know, or any whisky brands he may know.<br />Some researchers divide recall into both " unaided" and " aided" recall. " Aided recall" measures the extent to which a brand name is remembered when the actual brand name is prompted. An example of such a question is " Do you know of the " Honda" brand?" <br />In terms of brand exposure, companies want to look for high levels of unaided recall in relation to their competitors. The first recalled brand name (often called " top of mind" ) has a distinct competitive advantage in brand space, as it has the first chance of evaluation for purchase.<br />3.12 Brand Recognition<br />Brand Recognition is the extent to which a brand is recognized for stated brand attributes or communications<br />In some cases brand recognition is defined as aided recall - and as a subset of brand recall. In the case, brand recognition is the extent to which a brand name is recognized when prompted with the actual name.<br />A broader view of brand recognition is the extent to which a brand is recognized within a product class for certain attributes. Logo and tagline testing can be seen as a form of brand recognition testing. For example, if a product name can be associated with a certain tagline, logo or attribute (safety and Volvo; " Just do it" - Nike) a certain level of brand recognition is present.<br />3.13 Brand rejection:<br />If someone associates your brand with something negative, they will purposely avoid your product. Have you ever experienced bad service somewhere and swore you'd never return to that chain? Have any of your customers said that about your business? Create a logo and slogan that is filled with great benefits to your customer and put that on everything. If public opinion is turning against you or your product, launch a campaign to alter it. This is where your customers simply don't recognize your brand, probably because it is not clearly differentiated from competitors. Boldly state your product or service's benefits. Always include the full trademark name whenever you refer to your product. Be willing to create brand names for your products or services, just like you've done for your own business. Find the differences in value between your product and your competitors and highlight that difference mercilessly.<br />3.14 Brand recognition:<br />This is a good stage to aim for if you don't have any recognition at all. Brand recognition will help people lean toward your product when given the choice between your product and one they have never heard of. At the same time, though remember that your competitors are also working on brand recognition, which means their brand could be more recognizable. Continue to differentiate yourself and be sure to add value to your product in order to get to the next stage.<br />3.15 Brand preference:<br />This is where customers - given a choice between two brands - will choose yours over someone else's. It often is the result of a sense of differentiation and that your product or service uniquely serves their needs. As well, you can be sure that any value-added products or services you include help them to choose yours over your competitors. Even though this is a great stage to be in, it's not the final stage. The stage you absolutely want to be in with your brand is!<br />3.16 Brand loyalty:<br />This is where customers will choose your brand time and time again, even if they experience the occasional poor service or if another product comes along that seems to be better suited to their needs. To achieve brand loyalty, you need to provide a product that is highly differentiated, with plenty of value added, but also you need to offer them remarkable service at a level they will not get anywhere else. Providing this level of service will ensure that they will never switch.<br />3.17 Stability of responses<br />While brand awareness scores tend to be quite stable at aggregate (level) level, individual consumers show considerable propensity to change their responses to recall based brand awareness measures. For top of mind recall measures, consumers give the same answer in two interviews typically only 50% the time. Similar low levels of consistency in response have been recorded for other cues to elicit brand name responses.<br />3.18 Global Brand<br />A global brand is one which is perceived to reflect the same set of values around the world. A global brand is one that transcends their origins and creates strong, enduring relationships with consumers across countries and cultures.<br />Global Brands are brands which sold to international markets. They are sold in many different countries. Examples of Global Brands are Coca-Cola, McDonald's, Marlboro Levi's etc. Global brands such as Coca-Cola, MTV, Nike, McDonald's, Marlboro, and Levis etc are all successful global brands. All these products are targeted at similar groups globally.<br />3.19 Benefits of Global Branding<br />In addition to taking advantage of the outstanding growth opportunities, the following drives the increasing interest in taking brands global:<br />• Economies of scale (production and distribution)<br />• Lower marketing costs<br />• Laying the groundwork for future extensions worldwide<br />• Maintaining consistent brand name.<br />• Quicker identification and integration of innovations (discovered worldwide)<br />• Preempting international competitors from entering domestic markets or locking you out of other geographic markets<br />• Increasing international media reach (especially with the explosion of the Internet) is an enabler<br />• Increases in international business and tourism are also enablers<br />3.20 Global Brand Variables<br />The following elements may differ from country to country: <br />• Corporate slogan<br />• Products and services<br />• Product names<br />• Product features<br />• Positioning<br />• Marketing mixes (including pricing, distribution, media and advertising execution)<br />These differences will depend upon:<br />• Language differences<br />• Different styles of communication<br />• Culture barrier.<br />• Differences in category and brand development<br />• Different consumption patterns<br />• Different competitive sets and marketplace conditions<br />• Different legal and regulatory environments<br />• Different national approaches to marketing (media, pricing, distribution, etc.)<br />3.21 Local Brand<br />A brand is sold and marketed (distributed and promoted) in the relatively small and restricted geographical area. A local brand is a brand that can be found in only one country or region. It may be called a regional brand if the area encompasses more than one metropolitan market. It may also be a brand that is developed for a specific national market.<br /> <br />3.22 Brand name<br />The brand name is quite often used interchangeably within " brand" , although it is more correctly used to specifically denote written or spoken linguistic elements of any product. In this context a " brand name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services. A brand owner may seek to protect proprietary rights in relation to a brand name through trademark registration. <br />3.23 Types of brand names<br />Brand names come in many styles.<br />Acronym: A name made of initials such as UPS or IBMDescriptive: Names that describe a product benefit or function like Whole Foods or AirbusAlliteration and rhyme: Names that are fun to say and stick in the mind like Reese's Pieces or Dunkin' DonutsEvocative: Names that evoke a relevant vivid image like Amazon or CrestNeologisms: Completely made-up words like KodakForeign word: Adoption of a word from another language like Volvo or SamsungFounders' names: Using the names of real people like Hewlett-Packard or DisneyGeography: Many brands are named for regions and landmarks like Cisco and Fuji FilmPersonification: Many brands take their names from myth like Nike or from the minds of ad execs like Betty Crocker.<br />The act of associating a product or service with a brand has become part of pop culture. Most products have some kind of brand identity, from common table salt to designer jeans. A brand name is as important as a product itself because it has colloquially become a generic term for a product or service, such as Band-Aid or Kleenex, which are often used to describe any kind of adhesive bandage or any kind of facial tissue respectively.<br />3.24 Brand Identity<br />A product identity, or brand image are typically the attributes one associates with a brand, how the brand owner wants the consumer to perceive the brand - and by extension the branded company, organization, product or service. The brand owner will seek to bridge the gap between the brand image and the brand identity. Effective brand names build a connection between the brand personalities as it is perceived by the target audience and the actual product/service. The brand name should be conceptually on target with the product/service (what the company stands for). Furthermore, the brand name should be on target with the brand demographic. Typically, sustainable brand names are easy to remember, transcend trends and have positive connotations. Brand identity is fundamental to consumer recognition and symbolizes the brand's differentiation from competitors.<br />Brand identity is what the owner wants to communicate to its potential consumers. However, over time, a products brand identity may acquire (evolve), gaining new attributes from consumer perspective but not necessarily from the marketing communications an owner percolates to targeted consumers. Therefore, brand associations become handy to check the consumer's perception of the brand. <br />Brand identity needs to focus on authentic qualities - real characteristics of the value and brand promise being provided and sustained by organizational and/or production characteristics.<br />3.25 Visual Brand Identity<br />The visual brand identity manual for Mobil Oil (developed by Chermayeff & Geismar), one of the first visual identities to integrate logotype, icon, alphabet, color palette, and station architecture to create a comprehensive consumer brand experience.<br />The recognition and perception of a brand is highly influenced by its visual presentation. A brand’s visual identity is the overall look of its communications. Effective visual brand identity is achieved by the consistent use of particular visual elements to create distinction, such as specific fonts, colors, and graphic elements. At the core of every brand identity is a brand mark, or logo. In the United States, brand identity and logo design naturally grew out of the Modernist movement in the 1950’s and greatly drew on the principals of that movement – simplicity (Mies Vander Rohe’s principle of " Less is more" ) and geometric abstraction. These principles can be observed in the work of the pioneers of the practice of visual brand identity design, such as Paul Rand, Chermayeff & Geismar and Saul Bass.<br />3.26 Branding approaches:<br />3.26.1 Company name<br />Often, especially in the industrial sector, it is just the company's name which is promoted (leading to one of the most powerful statements of " branding" ; the saying, before the company's downgrading, " No one ever got fired for buying IBM" ).<br />In this case a very strong brand name (or company name) is made the vehicle for a range of products (for example, Mercedes-Benz or Black & Decker) or even a range of subsidiary brands (such as Cadbury Dairy Milk, Cadbury Flake or Cadbury Fingers in the United States).<br />3.26.2 Individual branding<br />Each brand has a separate name (such as Seven-Up, Kool-Aid or Nivea Sun (Beiersdorf)), which may even compete against other brands from the same company (for example, Persil, Omo, Surf and Lynx are all owned by Unilever).<br />3.27 Attitude branding and Iconic brands<br />Attitude branding is the choice to represent a larger feeling, which is not necessarily connected with the product or consumption of the product at all. Marketing labeled as attitude branding include that of Nike, Starbucks, The Body Shop, Safeway, and Apple Inc.. <br />" A great brand raises the bar -- it adds a greater sense of purpose to the experience, whether it's the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you're drinking really matters." - Howard Schultz (president, CEO, and chairman of Starbucks)<br />The color, letter font and style of the Coca-Cola and Diet Coca-Cola logos in English were copied into matching Hebrew logos to maintain brand identity in Israel.<br />Iconic brands are defined as having aspects that contribute to consumer's self-expression and personal identity. Brands whose value to consumers comes primarily from having identity value comes are said to be " identity brands" . Some of these brands have such a strong identity that they become more or less " cultural icons" which makes them iconic brands. Examples of iconic brands are: Apple Inc., Nike and Harley Davidson. Many iconic brands include almost ritual-like behavior when buying and consuming the products.<br />There are four key elements to creating iconic brands (Holt 2004):<br />" Necessary conditions" - The performance of the product must at least be ok preferably with a reputation of having good quality. <br />" Myth-making" - A meaningful story-telling fabricated by cultural " insiders" . These must be seen as legitimate and respected by consumers for stories to be accepted. <br />" Cultural contradictions" - Some kind of mismatch between prevailing ideology and emergent undercurrents in society. In other words a difference with the way consumers are and how they sometimes wish they were. <br />" The cultural brand management process" - Actively engaging in the myth-making process making sure the brand maintains its position as an icon. <br />3.28 " No-brand" branding<br />Recently a number of companies have successfully pursued " No-Brand" strategies by creating packaging that imitates generic brand simplicity. Examples include the Japanese company Muji, which means " No label" in English, and the Florida Company No-Ad Sunscreen. Although there is a distinct Muji brand, Muji products are not branded. This no-brand strategy means that little is spent on advertisement or classical marketing and Muji's success is attributed to the word-of-mouth, a simple shopping experience and the anti-brand movement. " No brand" branding may be construed as a type of branding as the product is made conspicuous through the absence of a brand name.<br />3.29 Derived brands<br />In this case the supplier of a key component, used by a number of suppliers of the end-product, may wish to guarantee its own position by promoting that component as a brand in its own right. The most frequently quoted example is Intel, which secures its position in the PC market with the slogan " Intel Inside" .<br />3.30 Brand extension<br />The existing strong brand name can be used as a vehicle for new or modified products; for example, many fashion and designer companies extended brands into fragrances, shoes and accessories, home textile, home decor, luggage, (sun-) glasses, furniture, hotels, etc.<br />Mars extended its brand to ice cream, Caterpillar to shoes and watches, Michelin to a restaurant guide, Adidas and Puma to personal hygiene. Dunlop extended its brand from tires to other rubber products such as shoes, golf balls, tennis racquets and adhesives.<br />There is a difference between brand extension and line extension. A line extension is when a current brand name is used to enter a new market segment in the existing product class, with new varieties or flavors or sizes. When Coca-Cola launched " Diet Coke" and " Cherry Coke" they stayed within the originating product category: non-alcoholic carbonated beverages. Procter & Gamble (P&G) did likewise extending its strong lines (such as Fairy Soap) into neighboring products (Fairy Liquid and Fairy Automatic) within the same category, dish washing detergents.<br />3.31 Multi-brands<br />Alternatively, in a market that is fragmented amongst a number of brands a supplier can choose deliberately to launch totally new brands in apparent competition with its own existing strong brand (and often with identical product characteristics); simply to soak up some of the share of the market which will in any case go to minor brands. The rationale is that having 3 out of 12 brands in such a market will give a greater overall share than having 1 out of 10 (even if much of the share of these new brands is taken from the existing one). In its most extreme manifestation, a supplier pioneering a new market which it believes will be particularly attractive may choose immediately to launch a second brand in competition with its first, in order to pre-empt others entering the market.<br />Individual brand names naturally allow greater flexibility by permitting a variety of different products, of differing quality, to be sold without confusing the consumer's perception of what business the company is in or diluting higher quality products.<br />Once again, Procter & Gamble is a leading exponent of this philosophy, running as many as ten detergent brands in the US market. This also increases the total number of " facings" it receives on supermarket shelves. Sara Lee, on the other hand, uses it to keep the very different parts of the business separate — from Sara Lee cakes through Kiwi polishes to L'Eggs pantyhose. In the hotel business, Marriott uses the name Fairfield Inns for its budget chain (and Ramada uses Rodeway for its own cheaper hotels).<br />Cannibalization is a particular problem of a " multi brand" approach, in which the new brand takes business away from an established one which the organization also owns. This may be acceptable (indeed to be expected) if there is a net gain overall. Alternatively, it may be the price the organization is willing to pay for shifting its position in the market; the new product being one stage in this process.<br />3.32 Private labels<br />With the emergence of strong retailers, private label brands, also called own brands, or store brands, also emerged as a major factor in the marketplace. Where the retailer has a particularly strong identity (such as Marks & Spencer in the UK clothing sector) this " own brand" may be able to compete against even the strongest brand leaders, and may outperform those products that are not otherwise strongly branded.<br />3.33 Individual and Organizational Brands<br />There are kinds of branding that treat individuals and organizations as the " products" to be branded. Personal branding treats persons and their careers as brands. The term is thought to have been first used in a 1997 article by Tom Peters. Faith branding treats religious figures and organizations as brands. Religious media expert Phil Cooke has written that faith branding handles the question of how to express faith in a media-dominated culture. Nation branding works with the perception and reputation of countries as brands.<br />CHAPTER-IV<br />Methodology<br /><ul><li>4. Type of Research:</li></ul>Descriptive method has been used in this research for the collection of data. As the res

×