CRM for a low involvement product


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  • CRM for a low involvement product

    2. 2. Agenda <ul><li>Introduction </li></ul><ul><ul><ul><li>Battery as a low involvement product </li></ul></ul></ul><ul><ul><ul><li>Company background </li></ul></ul></ul><ul><ul><ul><li>SWOT </li></ul></ul></ul><ul><ul><ul><li>Industry view </li></ul></ul></ul><ul><li>Brand Eveready </li></ul><ul><ul><ul><li>Past campaigns </li></ul></ul></ul><ul><ul><ul><li>Current campaign </li></ul></ul></ul><ul><ul><ul><li>Other initiatives </li></ul></ul></ul><ul><ul><ul><li>Brand performance </li></ul></ul></ul><ul><li>Relationship marketing to help build the brand </li></ul><ul><ul><ul><li>Customer </li></ul></ul></ul><ul><ul><ul><li>Channel </li></ul></ul></ul><ul><ul><ul><li>Partners </li></ul></ul></ul><ul><ul><ul><li>Company </li></ul></ul></ul>
    3. 3. Low Involvement <ul><li>Low stakes and low perceived risk </li></ul><ul><li>Involves fewer decisions & less deliberation </li></ul><ul><li>‘ Mental shortcuts’ – do not invest time in decision making </li></ul><ul><li>Develop routines for avoiding risks </li></ul><ul><li>Prefer national brand names </li></ul><ul><li>Low level of engagement </li></ul><ul><li>Active processing to a marketing stimulus </li></ul><ul><li>Cycle of decision making process is faster </li></ul>
    4. 4. About the Company <ul><li>Eveready Industries India Limited - portfolio comprising dry cell batteries, flashlights (torches) and packet tea. Recently forayed into the mosquito repellant industry under brand name, ‘Poweron’. </li></ul><ul><li>India’s largest selling brand of dry cell batteries & flashlights (torches), dominant market shares of about 46% and 85% resp. </li></ul><ul><li>Eveready is world’s third largest producer of carbon zinc batteries, selling more than a billion units a year. Carbon zinc batteries dominate Indian market with complete range for all equipment types. </li></ul><ul><li>The Eveready brand is synonymous with power </li></ul><ul><li>Eveready is celebrating its centenary year in India in 2005 </li></ul>
    5. 5. <ul><li>Strengths </li></ul><ul><li>Heritage brand – 104 years old </li></ul><ul><li>Extensive distribution network </li></ul><ul><li>Value for money product range </li></ul><ul><li>Pioneer and dominant organized player in rechargeable batteries in India </li></ul><ul><li>The only battery testing laboratory accredited by National Accreditation Board for Testing & Calibration Laboratories </li></ul><ul><li>Dominant market share in every segment. E.g. Dry cell, Carbon Zinc batteries etc </li></ul><ul><li>The Research Centre has Pilot Plant facilities, Analytical testing facilities such as Atomic Absorption Spectrophotometer (AAS) etc. </li></ul><ul><li>AC Nielsen study - enjoys a mindshare of 62.4% in the pencil battery segment and a 73.4% share among D-size battery users primarily in rural areas </li></ul><ul><li>Weakness </li></ul><ul><li>Technology is still being imported from foreign countries </li></ul><ul><li>Increase in operating costs leading to retail price increase </li></ul><ul><li>No significant increase in market share as the overall market pie has shrunk </li></ul><ul><li>Low scope for emotional connect </li></ul><ul><li>Opportunities </li></ul><ul><li>Introduction of newer lifestyle gadgets </li></ul><ul><li>Increase in disposable income </li></ul><ul><li>Increased spends on discretionary items </li></ul><ul><li>Increased demands from rural markets </li></ul><ul><li>New distribution channels </li></ul><ul><li>Threats </li></ul><ul><li>Disruptive innovations like iPod and Mp3 players that do not need conventional batteries </li></ul><ul><li>Unorganized market </li></ul><ul><li>Spurious brands </li></ul><ul><li>Dumping by manufacturers from Bangladesh, China, Japan, and South Korea </li></ul>
    6. 7. Brand <ul><li>EVEREADY </li></ul>
    7. 8. Differentiated brand positioning <ul><li>Stands for the assurance of power to rural consumers </li></ul><ul><li>Promises empowerment to young consumers in urban India </li></ul><ul><li>Rural </li></ul><ul><li>Urban </li></ul>
    8. 9. Urban campaign Launched around mid 2006 Launched in Early 90s
    9. 10. Give me red campaign <ul><li>TG – 15-25 </li></ul><ul><li>Changed the way batteries are perceived in India </li></ul><ul><li>The ad highlighted the color &quot;Red“. Next 16 years &quot; red&quot; was the central point in the brand campaign </li></ul><ul><li>&quot; Give me red&quot; positioned the brand as an energetic and sturdy brand </li></ul><ul><li>Popularity of walkmans and portable music players created a new market </li></ul>
    10. 11. Kuch hai extra - campaign <ul><li>In 2006, the brand faced a new challenge </li></ul><ul><li>Increased competition </li></ul><ul><li>Imminent need to communicate the value-added brand experience in a direct and focused manner. Thus, 'Kuch Hai Extra' was born </li></ul><ul><li>The new campaign aims to look at more features rather than image </li></ul><ul><li>Amitabh Bachan as a brand ambassador reflecting timelessness and reliability </li></ul><ul><li>Campaign designed to dramatize the dynamic power of Eveready batteries, using the technique of comic exaggeration </li></ul>
    11. 12. <ul><li>Spend more on advertising - Bulk TVCs </li></ul><ul><li>Significant revamp in point-of-sale promotions </li></ul><ul><li>Leverage Amitabh Bachchan’s promotions on its 1,000-odd vans that hawk everything from torches to batteries in the hinterland for supply chain </li></ul><ul><li>Wipro will work closely with Eveready’s IT wing to devise new enterprise resource planning (ERP) packages and other cost-reduction means by overhauling the supply chain management </li></ul><ul><li>Organised sales conference attended by over 480 key Eveready personnel, aimed at &quot;charging&quot; the team for a better performance </li></ul><ul><li>A Basic Training Program (BTP) launched for deployment & implementation of TQM practices </li></ul>Other initiatives
    12. 13. Brand performance <ul><li>The Economic Times’ Brand Equity survey of Brands by Sales, April 2004, put Eveready at no. 22 across brands in all categories </li></ul><ul><li>Scores in the CII survey done by the independent brand consultancy Vertebrands, show Eveready scoring a near-perfect 99% total awareness among Target Consumers </li></ul><ul><li>As per Vertebrands’ survey, on a 10-point scale, Eveready scored 8 on popularity and 7.7 on contemporariness. Of all consumers surveyed, 41% called it “The Only Brand for Me” </li></ul><ul><li>In the study done by Market Research Agency, Mode, Eveready enjoys an impressive 73.4 per cent mind share among the large (D size) battery users. In the pencil (AA) segment, the corresponding mind share is 62.4 per cent </li></ul><ul><li>These scores translate into market shares of 85% in torches and 47% in batteries </li></ul>
    13. 14. Recharging <ul><li>RELATIONSHIPS </li></ul>
    14. 15. Holistic Marketing Dimensions Customers Channels Mkgt Dept. Sr.mgt Other dept. Communications Products & Services Channels Ethics Environment Legal Community Company Partners
    15. 16. Scenario building -1 <ul><li>Mrs Jigyasa is a 29 year housewife residing in Ahmedabad. Her husband works is a lecturer at LD college, Ahmedabad. They don’t have any children as of now. </li></ul><ul><li>Her daily routine follows the following pattern:- </li></ul><ul><li>6:30 am – Alarm clock rings wakes up. </li></ul><ul><li>6:30 am to 7:30 am - Get tea ready, wake up husband, prepare breakfast and lunch (packed for husband) </li></ul><ul><li>7:30 am to 8 am – read newspaper </li></ul><ul><li>8 am to 8:30 – have breakfast with husband </li></ul><ul><li>8.30 am to 9:00 – Clean kitchen while listening to Mp3 </li></ul><ul><li>9 am to 10 - clean up house </li></ul><ul><li>10 am to 12 noon – read novel. </li></ul><ul><li>12 noon to 1 pm - Relax, talk to neighbours. </li></ul><ul><li>1.30 pm – prepare lunch </li></ul><ul><li>2 pm to 2.30 – watch tv and have lunch </li></ul><ul><li>3 pm to 4.30 pm – sleep </li></ul><ul><li>4:30 pm to 6 pm – Gym </li></ul><ul><li>6.30 pm to 7 pm : Mr. returns home </li></ul><ul><li>7 pm to 8: 30 pm – Spends time with husband; prepares dinner; watch TV </li></ul><ul><li>8.30pm to 9 – dinner and watch tv till 10:30 </li></ul><ul><li>10.30 to 11pm – go for a walk </li></ul><ul><li>11 – sleep </li></ul>
    16. 17. <ul><li>Mrs VS Shah is a 34 year housewife residing in Bopal, Ahmedabad. Her husband works in a chemical factory. She has two children – both girls - studying in class three and LKG. </li></ul><ul><li>Her daily routine follows the following pattern:- </li></ul><ul><li>5:30 am – Alarm clock wakes her up. </li></ul><ul><li>6 am to 7 am - Get tea ready, wake up husband, prepare breakfast and lunch (packed for husband) </li></ul><ul><li>7 am to 8 am – Wake up kids, bathe them, feed them and get them ready for school </li></ul><ul><li>8 am - Take older daughter to board school bus </li></ul><ul><li>8.30 am – See off husband. </li></ul><ul><li>9 am – Take younger daughter (carrying small toy ) to nearby kindergarten school </li></ul><ul><li>10 am to 12 noon – Wash clothes and tend to household chores, bath and dry hair using hair dryer . </li></ul><ul><li>12 noon to 1 pm - Relax, chat on cordless phone . </li></ul><ul><li>1.30 pm – Pick up younger daughter from kindergarten school </li></ul><ul><li>2 pm to 2.30 pm spend time with the younger daughter </li></ul><ul><li>2.30 pm to 3.30 pm – watch TV( remote ) </li></ul><ul><li>3.45 pm – Go along with younger daughter to receive older daughter at school bus drop off point </li></ul><ul><li>4 pm to 5 pm – Kida watch TV, Mrs Shah prepares snacks for them </li></ul><ul><li>5 pm to 6 pm – Kids play in neighbourhood; Mrs Shah collects dried clothes and tends to other household work </li></ul><ul><li>6.30 pm to 7 pm : Supervise older daughter’s home work </li></ul><ul><li>7 pm – Mr. Shah returns home from work and heads for shaving using personal electric shaver </li></ul><ul><li>7 pm to 8pm – Spends time with husband; prepares dinner; kids watch TV </li></ul><ul><li>8 pm – Kida dinner time </li></ul><ul><li>8.30pm – Puts kids to sleep </li></ul><ul><li>9 pm – has dinner with husband and watches TV till 10.30 pm </li></ul><ul><li>10.30 pm – Off to sleep </li></ul>Scenario building -2
    17. 18. Scope for Consumption
    18. 19. Consumers
    19. 20. Keeping the excitement alive <ul><li>Contests: </li></ul><ul><li>Amateur photographer contests </li></ul><ul><li>Complete the sentence (If Eveready was a person then….) </li></ul><ul><li>Scratch card contest </li></ul><ul><li>B-School case-study competitions </li></ul><ul><li>Events: </li></ul><ul><li>Organise Cross- Country Marathon </li></ul><ul><li>Region-specific activation plans Boat race in Kerala </li></ul><ul><li>Urban- Sponsorship Gaming </li></ul><ul><li>SNS Applications: </li></ul><ul><li>FB- Battery down </li></ul><ul><li>Are you charged up </li></ul><ul><li>Websites </li></ul>
    20. 21. Company website
    21. 22. Brand website
    22. 23. Engaging Users Online
    23. 24. Channel
    24. 25. Eveready ‘Charge’ Sheet <ul><li>Dealer Loyalty </li></ul>Dealer Name Location Region Covered Monthly Volumes Month on Month Growth Response Points Innovation Rewards SKS Batteries Ambala Haryana 100000 2% 120 B Krishna Dealers Chandigarh Chandigarh 170000 1.50% 100 A Singh and Co. Patiala Haryana 40000 -2% 60 Sita-Ram Wholesalers Patiala Haryana 120000 -1% 40 KLM Dealers Chandigarh Chandigarh 130000 0% 50 C Given on New Outlets, New SKUs, Promotions and Placement Eveready Branded Watch Eveready Calendar Gets a Digi Cam
    25. 26. Partners <ul><li>Challenge : Battery as a component is not visible to consumers who buy gadgets </li></ul><ul><li>Convince all organized retail players that their products would have higher perceived value if they distribute Eveready with their product </li></ul><ul><li>Co branding: A mechanism by which different companies come together to form alliances to leverage combined bargaining power </li></ul><ul><ul><ul><li>LG electronics and Eveready batteries </li></ul></ul></ul><ul><ul><ul><li>Tie-up with Toy company Fisher-price </li></ul></ul></ul><ul><ul><ul><li>Tie-up with modern retail formats </li></ul></ul></ul>
    26. 27. Ingredient branding <ul><li>From a competitive standpoint, a battery is a typical commodity. No performance difference </li></ul><ul><li>To give products (Digicam, MP3) manufacturers and their retail customers more reason to identify Eveready in their marketing </li></ul><ul><li>Eveready to convince manufacturers that their products would have higher perceived value if they feature Eveready in their own marketing </li></ul><ul><li>Eveready to start a “Eveready Recharger” campaign to educate both the retail sales associates and the consumers about the value of Eveready and to explain the differences between the batteries </li></ul>
    27. 28. Internal <ul><ul><ul><li>Knowledge sharing and updated information on company and brand </li></ul></ul></ul><ul><ul><ul><li>Motivation & Sales training programmes </li></ul></ul></ul><ul><ul><ul><li>Customer centricity programmes </li></ul></ul></ul><ul><ul><ul><li>Employee performance measures </li></ul></ul></ul><ul><ul><ul><li>Project Responsible company with a social vision </li></ul></ul></ul>