Application Exercise – Group -2



                      APPLICATION EXERCISE ON

                  PERCEPTUAL ORGANIZATIO...
Application Exercise – Group -2


                                                              Table of Contents
Introduc...
Application Exercise – Group -2

Major Segments..............................................................................
Application Exercise – Group -2

Introduction
  In this paper we have analyzed the concept of perceptual Organization and ...
Application Exercise – Group -2

In summary, watches the high and low even in the face of seeming schizophrenic diversity ...
Application Exercise – Group -2

2. How Ambiguous Cropped objects in Ad photos can affect product evaluations

  Summary o...
Application Exercise – Group -2

   When viewers lack sufficient motivation to complete the cropped object, the product ev...
Application Exercise – Group -2


called factors. Suppose we have a set of p observable random variables               wit...
Application Exercise – Group -2

   7. Examine the fit between:
            o   The position of your product
            o...
Application Exercise – Group -2

The loading matrix is
Variable                   PC1 PC2
Price                      0.123...
Application Exercise – Group -2

4. Evaluating alternate product positioning strategies

   Summary of the article
   Posi...
Application Exercise – Group -2



Similar all methodologies, the experimental group is exposed to the advertising campaig...
Application Exercise – Group -2



  It helps the marketer to specify the desired position of the new brand in the competi...
Application Exercise – Group -2

Application of the learning
       At this point of time, we have tried to observe the be...
Application Exercise – Group -2

Position Map of Various brands and sub brands in the Indian context



                  ...
Application Exercise – Group -2

        gift” giving a watch a cultural meaning in the society. Early advertisements of T...
Application Exercise – Group -2

 have encouraged customers to close these cropped images as a “Bride”, “Bride Groom” and ...
Application Exercise – Group -2

                                                     Rani Mukherjee Ad has a clear settin...
Application Exercise – Group -2

            Nirma                                          21.2     21.17     18.99     1...
Application Exercise – Group -2

                                                     without worrying about
             ...
Application Exercise – Group -2

                                                            Lower & medium-price segment....
Application Exercise – Group -2

    In order to make the radical shift, we believe the brand has to undergo changes in te...
Application Exercise – Group -2



 Conclusion
 On basis of various tradeoffs, we recommend that Henko should come up with...
Application Exercise – Group -2

Tag heuer




Longines




                             Page 24 of 37
Application Exercise – Group -2




 Appendix-B
OFFERINGS

Surf-Excel                                  Qty.          Price...
Application Exercise – Group -2

Henko

                  Henko Stain Champion                     1000           109     ...
Application Exercise – Group -2

                                                                                         ...
Application Exercise – Group -2



CLAIMED
BENEFITS

                                                           #
RIN     ...
Application Exercise – Group -2



 CLAIMED
 BENEFITS

                                                                   ...
Application Exercise – Group -2


Survey Questions
Readymade Garments Preferences
 Perception Facets                      ...
Application Exercise – Group -2

Readymade Wear Brand Surveys
Perception of the preferred brand               Associate – ...
Application Exercise – Group -2

Key   findings

         The most important perceptive elements for choosing a brand are ...
Application Exercise – Group -2

         flexibility for pricing the features

         Feature based descriptions, Value...
Application Exercise – Group -2

Watch Category Surveys
Perception of the preferred brand                                 ...
Application Exercise – Group -2

        Visual appeal of the watch is noticed the most and is the single most important c...
Application Exercise – Group -2

Key   findings

         Ad Recall is very strong in the watch segment.

         One of ...
Application Exercise – Group -2

Key Points

       Titan Nebula is disproportionately highlighted in 35 – 45 years segmen...
Upcoming SlideShare
Loading in …5
×

Consumerbehaviourproject

3,592 views

Published on

consumer behaviour project

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
3,592
On SlideShare
0
From Embeds
0
Number of Embeds
15
Actions
Shares
0
Downloads
204
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Consumerbehaviourproject

  1. 1. Application Exercise – Group -2 APPLICATION EXERCISE ON PERCEPTUAL ORGANIZATION AND REPOSITIONING (Watch and Detergent Industry Perspective along with Surveys on Watches, Credit card Industry and Readymade Garments) As part of elective course on Consumer Behaviour Quarter – 1 (2009-2010) Submitted to: Prof. S Ramesh Kumar Indian Institute of Management, Bangalore on July 18th, 2009 Submitted By: (Group 2) Adarsh Natarajan - 2008003 Alok Shukla - 2008005 Dharmesh Gandhi - 2008019 Narendran Subbaiah - 2008038 Ramanathan G A - 2008XXX Saurabh Jain - 2008105 Page 1 of 37
  2. 2. Application Exercise – Group -2 Table of Contents Introduction ................................................................................................................................................4 Literature Survey ........................................................................................................................................4 1. Watch as a Cultural Icon .......................................................................................................................4 Summary of the article ....................................................................................................................................................... 4 Learning from the article.................................................................................................................................................... 5 Application of the learning................................................................................................................................................. 5 2. How Ambiguous Cropped objects in Ad photos can affect product evaluations..................................6 Summary of the article ....................................................................................................................................................... 6 Learning from the article.................................................................................................................................................... 7 Application of the learning................................................................................................................................................. 7 3. Consistency of Information in Positioning Studies...............................................................................7 Summary of the article ....................................................................................................................................................... 7 Learning from the article.................................................................................................................................................... 8 Application of the learning................................................................................................................................................. 9 4. Evaluating alternate product positioning strategies............................................................................ 11 Summary of the article..................................................................................................................................................... 11 Learning from the article.................................................................................................................................................. 12 Application of the learning............................................................................................................................................... 12 5. Cohort Perception of Luxury Goods and Services............................................................................. 13 Summary of the article ..................................................................................................................................................... 13 Learning from the article.................................................................................................................................................. 13 Application of the learning............................................................................................................................................... 14 Industry Information................................................................................................................................ 14 Indian Watch industry ............................................................................................................................. 14 Major Players........................................................................................................................................... 14 Page 2 of 37
  3. 3. Application Exercise – Group -2 Major Segments....................................................................................................................................... 14 Major Price Points ................................................................................................................................... 14 Relevance and application of journals collected...................................................................................... 15 Usage of Perceptual organization in watch advertisements..................................................................... 17 Indian Detergent Industry ........................................................................................................................ 18 Major Players........................................................................................................................................... 19 Imagery from the advertisements ............................................................................................................ 19 Recommendations ................................................................................................................................... 21 Conclusion ............................................................................................................................................... 23 References ............................................................................................................................................... 23 Appendix ................................................................................................................................................. 23 Appendix –A ........................................................................................................................................... 23 Appendix-B ............................................................................................................................................. 25 Appendix-C ............................................................................................................................................. 26 Survey Questions ..................................................................................................................................... 26 Readymade Garments Preferences ...................................................................................................... 26 Readymade Wear Brand Surveys ........................................................................................................ 26 Perception of the preferred brand ....................................................................................................... 26 Perception of the preferred brand ....................................................................................................... 26 Credit Card Category Surveys ............................................................................................................. 26 Credit Card Brand Surveys.................................................................................................................. 26 Watch Category Surveys....................................................................................................................... 26 Perception of the preferred brand ....................................................................................................... 26 Watch Brands Surveys.......................................................................................................................... 26 Perception of the preferred brand ....................................................................................................... 26 Cohorts Perceptions of Luxury - .......................................................................................................... 26 Page 3 of 37
  4. 4. Application Exercise – Group -2 Introduction In this paper we have analyzed the concept of perceptual Organization and repositioning, keeping in mind the Watch and Detergent Industry. Blah Blah Blah. Literature Survey 1. Watch as a Cultural Icon Summary of the article This article explores the evolution and function of watch as a contemporary cultural icon. Back in time only the wealthy and powerful owned clocks, which were instruments of power and it, signalled the authority of the individual. It also had an ornamental value. When wealth bled into the middling class, ornament gave way to Craftsmanship of Grandfather clock. Post World War II, invention of watches commoditized time. Then the concept of “spending time”, “Time is money” etc became part of the culture. While clocks signal control on others, watches signal control on self. Watch depicted the independence of an innovator, a corporate leader. The Timex brought a dramatic change in the market. The cost of these reliable quartz movements plunged to remarkable and nearly threatened the “Fine watches” segment. As electronically driven quartz technology democratized the watch’s works, the trade beginning in 1980s aggressively fought back within the signal economy. The advertisements of the expensive watches signalled this transformation. On the utility function, both the quartz and the fine watches didn’t differ drastically. Given the ever-diminishing role of utility in watch ownership, expensive watches started positioning itself as an “expression and extension of wearer’s personality”. Watch now has become less about time and more about itself as a cluster of cultural signs. Watches now have a special appeal lending themselves to rituals and express in a non-verbal way something that cannot be expressed in the controlling conventions of words. A Watch does this work by transforming this relatively comfortable concrete reality into a resonate image. Many watches are nearly impossible to read but the utility of telling time is not the point. It is only an alibi for other cultural interests. The entrepreneur does not consult his watch, rather wears his watch in a signal display just as an eighteenth century gentlemen wore a sword or a nineteenth century gentlemen carried a stick. A watch remains one of the few jewellery options available for men. Women as they move from the managerial to the entrepreneurial ranks are opting for these expensive watches. Until recently watches at the high end for women were swallowed in the category of jewellery, marking the subordinate status of women to whom men gifted these. But now watches extend the feminization of men and masculinisation of women extends gender complexity and confusion. Page 4 of 37
  5. 5. Application Exercise – Group -2 In summary, watches the high and low even in the face of seeming schizophrenic diversity maintain a fundamental sameness. Watch as a cultural icon now signals both power and authority. Learning from the article Major takeaway from this article is how a marketer through fine research and insights of the changing culture of the society can keep repositioning the same product category and make it stand the test of times. Even though the product category’s value as a utilitarian object is diminishing, it can be positioned to address the cultural and emotional aspects of the consumer. There have been many product categories which have become obsolete in the market but watches even though commoditized with the invention of quartz have stood the test of time and still able to command a premium by being a cultural icon. The challenge in this is that the cultural values of the society can keep on changing and it’s the marketer responsibility to look for these and make sure that the product category evolves and addresses these changing values. Application of the learning The concepts addressed in the article clearly give an insight into evolution of the Indian watch industry. The Indian watch industry started with the era of HMTs when watches were purely viewed from a utilitarian perspective. Titan instead of taking the central route used the peripheral route and addressed the emotional and cultural aspects of the Indian society by using the campaign “Gift for all occasions”. Its advertisements in the early days used varied cultural occasions like Deepavali, marriage and positioned itself as a gift for these occasions. When the industry evolved, Titan wanted to increase repeat purchase and didn’t want customers to own only one watch. Thus, the campaign using Aamir Khan and the perplexed assistant. One watch for each dress. More campaigns clearly addressed the aspects of being individualistic, extension of oneself etc. Titan Raga ranges were positioned in the jewellery segment targeted at women and made them view watches as a jewel for occasions. With the growing women executives in India and liberal views of the society towards women, Unisex watches are in the fray. Men wear gold and diamond studded watches and flaunt them as jewellery rather than just a watch. This evolution in the industry is a clear proof point for the statement “Masculinisation of women and feminization of men” mentioned in the article. Page 5 of 37
  6. 6. Application Exercise – Group -2 2. How Ambiguous Cropped objects in Ad photos can affect product evaluations Summary of the article Visual Ambiguity: the visual depiction of either the consumption object or the product is severely cropped or ambiguous. The articles talks about the effects that visual/verbal ambiguity in ads, can have on the perception of the viewer. This article suggests that product evaluations by motivated viewers of such ads can in fact generate a lot of positive affect amongst the viewers. However, this positive affect will only come when the object that is cropped is not directly relevant to the ad while the object that is relevant to the ad remains largely uncropped and unambiguous. The explanation given for the positive outcome noted earlier is, that the outcomes are dependent on the subjects processing motivation, and under high motivation, are mediated by the composite effect of two processes. The first process is determined by whether an ambiguous object appears in an ad photo. If it does, this object fosters extensive and affect-intensifying ad processing as well as intensive positive affect as the ad recipients should attempt to mentally complete the object and thus resolve the ambiguity. The second process concerns whether the ad photo contains a cropped object that obstructs the subjects’ attempts to substantiate the verbal ad claims. It seems that the ambiguity of a cropped object is likely to prompt ad viewers to engage in heightened processing and complete the cropped object provided they possess sufficient motivational resources. This process of resolving the ambiguity evokes intense positive affect that greatly heightens these viewers’ product evaluations so long as the cropping of the object does not impair the viewers’ efforts to substantiate or amplify the ad claims. See the figure given below which explains this phenomenon of two processes. Page 6 of 37
  7. 7. Application Exercise – Group -2 When viewers lack sufficient motivation to complete the cropped object, the product evaluation will be based on some easily applied heuristic. They might end up simply transferring the affect they associated with the product category to the advertised brand, thereby resulting in an absence of treatment effects on their product evaluations. The article notes that the same pattern of outcomes emerged for both function-oriented and image-oriented ads that contained the same basic pictorial components. The article also suggests that both visual and verbal ambiguity may operate in similar ways. Learning from the article The concept of Closure can bring about intense and enhanced positive product evaluations, when a low relevant object in the ad is severely cropped and the viewers are sufficiently motivated to indulge in processing of this ad. This brings about an enhanced processing of the ad, which in turn leads to an extremely positive product evaluation. However, care has to be taken to ensure that the cropped object should be of a low relevance to the product being advertised. If the cropped object happens to be of high relevance, then this could invoke negative reactions as detailed in the summary of the article. Application of the learning The watch ads targeted at youth, while showing cropped images of youngsters can ensure that the watch itself is seen prominently can evoke positive product evaluation. This can be applied to any of the segments that the product is focused on. The Titan ad where Aamir Khan keeps throwing one watch after another watch to match his entire wardrobe and hums only the last ending part of the popular Titan jingle. This can act as a cropped verbal cue requiring the ad viewer to bring about the closure technique to relate to the brand. This, in turn can bring about an extremely positive product evaluation even in the lifestyle premium segment. 3. Consistency of Information in Positioning Studies Summary of the article The article talks about how positioning parameters can be important in providing a clear direction as to how consumers compare brands within a product category. The positioning map describes the position of each brand in the consumer’s mind. The article presents a method to evaluate the reliability of positioning parameters. The analytical tool used here is principal components of factor analysis which is a statistical method used to describe the variability among observed variables in terms of fewer unobserved variables Page 7 of 37
  8. 8. Application Exercise – Group -2 called factors. Suppose we have a set of p observable random variables with means Suppose for some unknown constants lij and k unobserved random variables Fj , . The approach used is to test the consistency of perceptual mapping. 2 waves of surveys were done on the same population in consecutive months. Consistency of the information between the two surveys was evaluated by performing exploratory principal component analysis for each dataset. Correlation table is created from both the surveys and the degree of correlation between the tables itself is checked. with the following assumptions Find the factor loadings L from the survey results .2 basic comparison statistics are used, root mean square and the correlation coefficient. Use them to find the consistency of survey results. Draw the positioning map. Learning from the article Generally, the product positioning process involves: 1. Defining the market in which the product or brand will compete (who the relevant buyers are) 2. Identifying the attributes (also called dimensions) that define the product 'space' 3. Collecting information from a sample of customers about their perceptions of each product on the relevant attributes 4. Determine each product's share of mind 5. Determine each product's current location in the product space 6. Determine the target market's preferred combination of attributes (referred to as an ideal vector) Page 8 of 37
  9. 9. Application Exercise – Group -2 7. Examine the fit between: o The position of your product o The position of the ideal vector 8. Position The learning is the importance of the choice of attributes in the design of a positioning map based on which a marketer takes his decision. Equally important is the validity of the factor analysis done. Good thing is both objective and subjective attributes can be used. There is flexibility in naming and using the dimensions. Application of the learning We take a total of 7 brand attributes including price and rate them according to our perceptions based on the advertisements, packaging, brand recall, etc. The attributes are Price, Number of benefits claimed, ad attractiveness, brand recall, humour, celebrity and package attractiveness. We then run a principal component factor analysis and get a correlation matrix Correlation Matrix No of Pkg benefits Ad Brand Attractiv Attributes Considered Price claimed attractiveness Recall Humor Celebrity ness Price 1 Number of benefits claimed 0.162 1 Ad attractiveness 0.21 -0.329 1 Brand Recall 0.267 -0.464 0.227 1 Humor 0.321 -0.442 0.803 0.515 1 - Celebrity -0.043 0.795 -0.241 0.238 -0.49 1 Package attractiveness 0.153 -0.657 0.811 0.579 0.857 -0.588 1 Mostly the coefficients are sufficiently high to suggest a factorable solution, with a few exceptions of course. Eigen value analysis suggests 73.5% of the original information is explained by the components. Page 9 of 37
  10. 10. Application Exercise – Group -2 The loading matrix is Variable PC1 PC2 Price 0.123 0.648 Number of benefits claimed -0.383 0.504 Ad attractiveness 0.387 0.283 Brand Recall 0.325 0.106 Humor 0.460 0.232 Celebrity -0.357 0.423 Packaging Attractiveness 0.493 0.026 From these loading matrices we try to name the perceptual map components. Based on these loading factors we observe that PC1 i.e. the x-axis corresponds mostly to packaging attractiveness, humour, ad attractiveness which can be combined to term as Brand Communication. PC2 corresponds mostly to Price and Number of benefits claimed (0.648, 0.504).Hence we would term the y- axis as the extent of Premium-ness of the brand. Limitations: Usefulness depends on our ability to develop a complete and accurate set of product attributes. Naming of the factors can be difficult. Page 10 of 37
  11. 11. Application Exercise – Group -2 4. Evaluating alternate product positioning strategies Summary of the article Positioning (repositioning) strategies can be characterized as attempts to move a brand to a particular location within a perceptual product space. Advertising typically serves as the major vehicle for positioning a brand on a perceptual dimension. For assessing the impact of advertising in a brand positioning/repositioning context, four steps are generally suggested: (1) Obtain a perceptual joint space for the set of existing brands which identifies the perceptual position of the referent brand (2) Initiate repositioning advertising campaign on the basis of the dimensions underlying the competitive nature of the space and the desired position of the referent brand (3) Obtain a new perceptual joint space after exposure to the advertising campaign and (4) Evaluate the efficacy of the advertising campaign by the position of the referent brand in relation to its desired position. A variety of methodologies are available for constructing perceptual maps (e.g., multidimensional scaling, factor analysis, discriminant analysis, etc.). In all techniques a group of objects (e.g., brands) is jointly portrayed in a perceptual space along with the characteristics upon which the objects were rated. When the objects are brands and the characteristics rated are salient attributes of the brands, the resulting perceptual map provides the marketer with the perceptual position of the referent brand with respect to the other brands and the salient attributes of the product class. Use of standard perceptual joint-space methods produces a post-exposure perceptual map in which all of the brands are displaced. This is because, given a change in ones bran position, the distance among the other brands will most likely have to change in order to maintain a satisfactory goodness-of-fit. Large displacements in the post-exposure position of non referent brands, a simple artefact of the joint space methodology used, complicate the assessment of the impact of the advertisement campaign. In cases where the advertising campaign is directed toward changing the perception of the referent brand along an attribute that defined a prominent perceptual dimension in the initial pre-exposure product joint space, then the relative positions of the non referent brands in the post-exposure perceptual map should remain invariant. This paper evaluates this methodology using ASCID (Advertising Strategy and Copy Information Development), a user-friendly decision support program which can be used in pre-testing or in a post-evaluation of message effectiveness. Page 11 of 37
  12. 12. Application Exercise – Group -2 Similar all methodologies, the experimental group is exposed to the advertising campaign, while a control group is not. Any changes in the referent brand's position in perceptual space following exposure to the advertising campaign is determined by comparing the movements in the postexposure configuration of brands in the experimental group to the "postexposure" configuration of brands in the control group. In ASCID method since the positions of the other brands in the perceptual map are constrained to be invariant, the post-exposure map is identical to the pre-exposure map except for the new position of the referent brand. The reasoning is that if we have not altered the salience of the product attributes, there is no reason to expect the positions of the nonreferent brands to change with respect to each other. Advantages of ASCID: (1) The ASCID decision support program allows the advertiser to specify a desired position in a particular competitive market, design an advertising campaign to achieve that position, and then test individual pool- outs to determine the direction and distance of movement that occurs within the perceptual space. (2) It can also be used in tracking movement of brand positions over time as new positioning strategies are initiated by competitors. (3) The ASCID program also allows for the evaluation of different strategies on a test group before the strategy is actually implemented. Learning from the article In cases where the repositioning advertising campaign is directed toward changing the perception of the referent brand along a prominent perceptual attribute in the initial pre-exposure product joint space, using ASCID method of plotting perceptual joint space, we can expect configural invariance of nonreferant brands. Hence, the post-exposure map is identical to the pre-exposure map except for the new position of the referent brand. Hence ASCID is an effective methodology for evaluating the efficacy of positioning / repositioning campaigns in situations where configural invariance of the non-referent brands is assumed to hold. Application of the learning ASCID methodology can be used to create the perceptual map of all the detergent brands in the competitive space. ASCID methodology gives clear insights to the effectiveness of the repositioning advertisement campaign along a salient dimension. Page 12 of 37
  13. 13. Application Exercise – Group -2 It helps the marketer to specify the desired position of the new brand in the competitive market along each attributes and helps to test the effectiveness of the proposed advertisement messages one by one. 5. Cohort Perception of Luxury Goods and Services Summary of the article The article aims to investigate the perception of luxury between cohorts and perceptions of luxury goods and services. As per the article “Cohorts are defined as groups of individuals who are born during the same time period and who experience similar external events during their late adolescent and early adulthood years (Meredith and Schewe, 1994; Ryder, 1965). “Defining moments”, such as changes in the economy, wars, politics, technological innovations, and sociological unrest, tend to shape their world view and influence their values, preferences, attitudes, and buying behaviour that spans their lifetime (Meredith and Schewe, 1994; Ryder, 1965). As the article states that the entire research is based on the premises that individual are highly influences by events that have occurred in their coming of age years. It also states “They concluded that different cohorts recall different events or changes and that these memories come especially from adolescence and early adulthood” The cohorts are also important topic to study because as and when the cohorts age and enter new life stages, they take along them their :- Coming-of-age cohort value systems Wants and needs Cohort analysis can aid in tracking and forecasting changes that will take place. Cohorts will impose their values and preferences on the way they carry out with their lives The article also talks about the concept of luxury as it has evolved from “being applied to items that were both rare and scarce and available only to the elite few” to the post 1900’s definition “things you have that I think you shouldn’t have” Learning from the article The most important learning for the article is that it is important to understand the elasticity of luxury goods and services because it sets the upper bounds of price for such goods and services. If a good is perceived as luxury the marketers have less flexibility in setting prices Page 13 of 37
  14. 14. Application Exercise – Group -2 Application of the learning At this point of time, we have tried to observe the behaviour of cohorts in two specific products brands – wrist watch brands and ready made clothes brands. As credit cards have not been in India since long, it was not used for cohort behavior understanding. For watches and readymade garments, each of the respondents was asked himself/herself to identify themselves with a specific generational identification by pointing out some cultural aspects of a particular time period. Additionally, they have also been asked to identify the brands that they consider luxurious for that segment. The inference hence ascertained has been noted after the end of each article. Industry Information Indian Watch industry The Indian watch industry began in the year 1961 with the commissioning of the watch division of HMT.HMT was the leader in the watch market till the Tatas formed Titan watches. They took a major strategy decision, which changed the face of the Indian watch market, which is to market only quartz watches. Liberalization in 1992 and the removal of quantitative restrictions due to WTO opened the doors for many foreign brands. Major Players Titan Timex HMT Tag Heuer Longines Omega Rolex Major Segments Mens watches Women’s watches Youth watches Kids Watches Sports watches Omega Major Price Points Economy (350-600) Popular (600-900) Premium (900-1500) Super Premium Luxury (8000 and (1500-8000) above) Page 14 of 37
  15. 15. Application Exercise – Group -2 Position Map of Various brands and sub brands in the Indian context Premiu Nebul Raga Omega Tag Longine Regali Xylys Edge Position Map of Various brands based on Price and Variety Traditional Trend Timex Fastrack Sonat Econom Rolex Longines Tag Heur Xylys Price Titan Raga Titan Classique Fastrack Sonata Variety Relevance and application of journals collected Watch as a cultural Icon: The Indian Watch industry has evolved over past four decades. As explained in Journal 1, leading brands in the market have played a major role in transforming watches from having just a utility value to having a cultural value. During the HMT days , watches were just remembered as those sturdy mechanical things which help in knowing the time. Titan pioneered the concept of “watches as a Page 15 of 37
  16. 16. Application Exercise – Group -2 gift” giving a watch a cultural meaning in the society. Early advertisements of Titan clearly communicated the idea of looking at watches as a gift for various occassions like ‘Diwali’, “Home Coming”, “Marriage”. This is a key inflection point in the Indian watch industry when watches suddenly carried a cultural meaning. The sale of watches increased leaps and bounds and everyone started having a Titan watch. Next inflection point came when Titan realised that customers must be encouraged to own more than one watch. Another challenge was that everyone owned a Titan and everyone resembled each other. There was individualization and there was a risk of watches being commoditized. This made Titan to come up with the “Aamir Campaign” encouraging consumers to buy watches to match their dress and brought in individualization. Then the “Be more” campaign conveyed the message of owning watches to reflect your personality and gave watch a meaning of “extension of yourself”, expression of success and power etc. Titan also unvieled the “Raga” range for women which took watches into the ethnic and jewelery category giving it a more cultural meaning. Jewels have always been close to Indian culture and this range encourage women to look at watches as jewels. Then came the plethora of foreign brands most of them in the luxury segment catering to the emotional values of consumers. The watches one own reflects the association and status of the individual and the advertisements campaigns like “What are you made of”, “I do things my way” etc indicates the transformation of watches as a cultural icon in the indian industry. Price Rolex Tag Heur Omega Longines Xylys Titan Raga Titan Classique Fastrack Timex Sonata Utility Value Cultural Value Journal 2: How Ambiguous cropped objects in Ad photos can affect product evaluations. Advertisements of Titan has successfully used this concept to enhance the evaluation of their brands. The “Marriage Ad” of Titan has distinctively cropped visual images and the faces of the models are not shown completely. Lacking motivation, consumer might use heuristics to complete these images. But Titan with its famous jingle has motivated customers to get emotionally engaged to the advertisments and Page 16 of 37
  17. 17. Application Exercise – Group -2 have encouraged customers to close these cropped images as a “Bride”, “Bride Groom” and “Father” respectively. This has made consumers get highly involved with the Titan ads and have closed these images using their cognitive resources and have made Titan in their consideration set when they think of gifts for such occassions. Aamirs Campaign of matching watches for the dress has crossed audio of the Titan jingle. The jingle which has already become iconic even though cropped encouraged customers to fill in the missing parts and relate the ad to the brand. These two aspects are excellent examples how using cropped/ambiguous images/audio can enhance product evaluations when consumers have the motivation to do the closure. Usage of Perceptual organization in watch advertisements Concept Brand Sub Brand Advertisement Ad Medium The Print ad of Fastrack and has a clear contrast of the Brand name and the background. The Object is the Brand name itself and the background is slightly out of focus mountain and outdoors. This gives a Figure and very clear projection to the brand name in Ground Titan Fastrack ad Print The Print ad of Xylys has the watch in the foreground at the brackdrop of new york skyline. With the contrasting colour and image the watch is projected well and allows the consumer to make an association of the watch with the elite and corporate. The choice of colour indicates the poistion of the brand in Xylys the luxury segment Print The print ad has Celebrity (Aishwarya Rai) on one side and the watch on the other. This signals an association of the watch Longines Longines with success, prestige, Beauty etc Print The Marriage ad of Titan shows the bride, groom and father and allows the consumer to group them and form an perception of emotion, love , value and responsibility. These early ads signalled the positioning of Grouping Titan Classic Watch as gift for any occasion TV "Be More" Campaign of Aamir made the consumer to group all the images of the ad and form a perception of individualism, rebellious, care free, adventure TV Page 17 of 37
  18. 18. Application Exercise – Group -2 Rani Mukherjee Ad has a clear setting of an ethnic Indian house with the jingle remixed with an Indian touch. The Ad shows the model removing her jewels and at the end wearing Titan Raga. Consumers group this with ethnicity, Jewellery and creates a perception of watch as Raga replacement for jewellery TV Move On ad has a girl and boy exchanging the gifts and finally wearing the fastrack watch. The whole setting creates a Fastrack perception of care free , rebellious attitude. TV Whenver consumers hear the Titan Jingle , they fill it up with images of the ad whichever appeals to them. This is closure. Titan is one of the few brands who have successfully used the Jingle to its Closure Titan Classique/Raga advantage TV/Audio "Yes Sir" ads does not explicitly convey the message of the ad . Consumers fill in the details and form a perception of trendy, cool , youth etc towards to the fastrack Fastrack brand TV Indian Detergent Industry The Indian detergent products market is a highly fragmented one. There is a sizeable unorganized sector. In this study of Indian detergent market, we focus only on the fabric wash synthetic detergent sector and exclude scourers (surface/floor cleaning) and other products. In 2004, of the 23 lakh ton fabric wash market, laundry soaps and bars made from vegetable oils accounted for around seven lakh tons with synthetic detergents making up the rest 16 lakh tons. Fabric detergent products are categorized into three segments – Premium Brands, Medium Priced/Regular Brands, and Economic/Janta Brand. The premium and medium priced segments together accounted for 20% of the volume share and 35% of the value share. The economy segment made up the remaining lion's share of the market. The fabric wash industry in India was characterized by low per capita consumption, especially in rural markets. The major players in the Indian detergent market are HLL, P&G, Nirma and Henkel (through its joint venture with SPIC, a leading petrochemical company based in the south Indian city of Chennai). Market share (in terms of sales revenue) for various players is depicted in table below (Note: This is only an indicative chart since the data is for Synthetic Detergents & Scourers). 2002– 2003– 2004– 2005– 2006– 2007– Company wise % market share per year 03 04 05 06 07 08 Hindustan Unilever 42.32 40.01 33.97 35.54 32.93 33.65 Page 18 of 37
  19. 19. Application Exercise – Group -2 Nirma 21.2 21.17 18.99 17.83 16.05 15.68 Procter & Gamble Home Products 7.09 7.26 Procter & Gamble Hygiene & Health Care 2.65 2.81 4.15 5.44 1.45 Henkel India 0.53 0.42 1.47 2.45 2.26 2.42 Henkel Spic India [Merged] 4.51 4.65 3.89 Source: Economic Intelligent Services – Industry: Market Share & Size (Synthetic Detergents & Scourers) Centre for Monitoring Indian Economy P&G and HLL were not the only major players in the Indian fabric detergent market. Henkel and Nirma were also becoming very aggressive in terms of marketing their products. When Nirma, a small insignificant player, began challenging Surf's dominance in the detergent market in early 1980s, HLL launched various counter measures. The entry of P&G in early 1990s on to the scene further intensified the competition, creating a new market segment - the compacts (compact technology premium detergent brands). HLL has taken retaliatory steps to keep P&G in check and retain its leadership position. In 2004, P&G India had drastically slashed the prices of its detergents - Ariel and Tide. P&G had reduced the price of a 500 gram pack of Ariel from Rs 70 to Rs 50 - a drop of 28 % and the price of a 500 gram pack of Tide from Rs 43 to Rs 23 - a fall of 45 %. P&G's detergents were expected to reach customers across India within a week of announcement of the price cuts. Within two days, in swift retaliation, HLL slashed the price of its premium brand Surf Excel from Rs 70 to Rs 50 and the price of Surf Excel Blue from Rs 50 to Rs 38 for 500 grams. HLL tried to ensure that the products reached the retail shelves within a day or two of HLL's announcement, thus countering P&G's first mover advantage. In 2009, the major brands in the detergent (Powder & Bar) markets are SURF EXCEL, WHEEL, RIN from Hindustan Liver, WHEEL and TIDE from Proctor & Gamble, HENKO, Mr. WHITE & CHEK from Henkel and NIRMA SUPREME from Nirma. Major Players Surf Ariel Tide Rin Nirma Henko Imagery from the advertisements S.No Brand Name Proposition/Positioning Advertising Imagery* Stain Removal, Less Water, Special Specific emphasis on 1 Surf Excel offering for Washing Machine, school kids .Mothers now Extra Bright Clothes. have the freedom to let their kids experience life Page 19 of 37
  20. 20. Application Exercise – Group -2 without worrying about stains. Middle and premium segment. An association with colour BLUE to imply a whitening characteristic, though the new offerings have white color detergent. "Best clean with less effort", For Middle class woman heavty duty laundry. Mass market going to a bank to send consumers. money order to his old 2 Wheel father. Clear focus on savings. Economy brand. Lower & medium-price segment. Empowerment of women. Typical rainy season problems associated with wearing white clothes. Humorous ad. Whiteness, Value proposition when offering some smaller packs at Rs. "White ho to Tide ho” 11/- motivating intention to buy is a nice way to rhyme aspect, reaching both lower & upper the word and make it 3 Tide class segment consumers through these introductory packings. easy to recall. Trying to create transaction utility by For mid-priced segment crossing out 43 and promoting the price as Rs. 23/- . Significantly above the JND. Celebrity(Juhi Chawla) is used along with a person in a doctor's apprin - Stain Removal, Oxygen power, shining WHITE (expert Kills germs. washing machine power?).Use of oxygen 4 Henko baloon to attract attention. Trying to portay country Middle and premium segment. of origin (Germany) to highlight quality, but not stated that explicitly. Boring informational ad. Whiteness benefit. Lime and indigo Shows college going guy 5 Mr White ingredient. Mass market consumers. and a housewife emphasizing on whiteness of clothes (School/College Page 20 of 37
  21. 21. Application Exercise – Group -2 Lower & medium-price segment. formal dress is white, house-wife gives emphasize to whiteness). Monotonous, Boring ad with not much audio video for quick recall. The flash of light is synonymous with the brand Rin Whiteness, Superior cleaning. The characters used in a 6 Rin Lower price segment regular day to day environment so that people can relate with them, middle class environment Technology focus.Use sportsmen like Yuvraj Stain removal, fragrance, washing Singh.Packaging has 7 Ariel machine. medium and premium Zaheer khan, so celebrity segment. oxygen-oxyblue, oxyrich advertising used.No audio video repetition ,jingle etc. "Washing powder Nirma" a popular jingle etched in consumer's mind- nostalgia.Audio and visual identity unchanged for Whiteness.Lower price segment.No many years.Dancing girl 8 Nirma special benefits of the powder imagery. Indian women mentioned. dancing showing their perfectly clean sarees. Good brand recall. "sabki pasand nirma"- mass market appeal. *Imagery as perceived by authors from the advertisements From the perceptual map and the imagery perceived through advertisement, we feel that for Henko the brand recall value is very weak. Their advertisements lack the association elements which reduces the consumer’s intention to buy even at the point of sale. Recommendations Brand to be repositioned: Henko Stain Champion -> from now on referred to as Henko As seen in the perceptual map earlier it suffers from poor brand communication (i.e.) unattractive advertisements and packaging. On the basis of claimed benefits by the brands and the current positioning of the brand in perceptual map, we feel there is low to medium degree of Anchored perception and low intention to buy. Page 21 of 37
  22. 22. Application Exercise – Group -2 In order to make the radical shift, we believe the brand has to undergo changes in terms of New Mix SCP High Anchored Perception Repackage New Imagery Low Low High Intention to Buy • Re-packaging – To have new brand associations change the existing brand associations. A new brand image (maybe a sub-brand to lend vitality to existing brand) is required. More attractive colours with better material should be used to convey the image of a revamped brand.(E.g.: Surf Excel uses metallised polyster film to provide that glossy finish) • Benefit based repositioning – The number of brand benefits as claimed by Henko is significantly higher than its competitors. Maybe to get the message across it needs to be more focussed. • Country of Origin – Since Henko is of German origin, we can explicitly highlight the functional benefits being brought from Germany. Page 22 of 37
  23. 23. Application Exercise – Group -2 Conclusion On basis of various tradeoffs, we recommend that Henko should come up with new packaging and advertisements that will connect more with the end-users. References 1. Watch as a cultural Icon 2. Advertisement 3. Consistency of Information in positioning study 4. Re-positioning Article 5. Cohort Perception Appendix Appendix –A Print Ads for various brands Titan Xylys Page 23 of 37
  24. 24. Application Exercise – Group -2 Tag heuer Longines Page 24 of 37
  25. 25. Application Exercise – Group -2 Appendix-B OFFERINGS Surf-Excel Qty. Price Piece/kg Surf Excel BLUE 750 93 124 Surf Excel Quick Wash 1000 152 152 Surf Excel Quick Wash 200 36 180 Surf Excel Quick Wash 500 78 156 Surf Excel Matic Top Load 500 90 180 Surf Excel Matic Front Load 1000 199 199 Surf Excel Matic Top Load 1000 175 175 Ariel Ariel 24 Fresh Fragrance (2 diff fragrance) 500 84 168 Ariel Oxy Blue 1000 199 199 Ariel Oxy Blue spring clean 1000 146 146 Ariel Matic Front load 1000 199 199 Ariel Oxy Blue top load ultra matic 1000 216 216 Ariel Oxy Rich anti-stain 200 34 170 Page 25 of 37
  26. 26. Application Exercise – Group -2 Henko Henko Stain Champion 1000 109 109 Henko Stain Champion Matic 1000 165 165 No. of Variants Avg. Price / offered Kg. Variety Surf-Excel 167 4 Ariel 180 6 Henko 137 2 CLAIMED BENEFITS # Surf-Excel Avg. Price/kg. Benefits Claimed Benefits Surf Excel BLUE 124 1 stain removal Surf Excel Quick Wash 152 2 stain removal,water stain removal,washing Surf Excel Matic Top Load 175 2 machine stain removal,washing Surf Excel Matic Front Load 199 2 machine Ariel Ariel 24 Fresh Fragrance (2 diff fragrance) 168 2 stain removal,fragrance stain removal with Ariel Oxy Blue 199 2 oxyblue Ariel Oxy Blue spring clean 146 1 normal stain removal stain removal,washing Ariel Matic Front load 199 2 machine stain removal,washing Ariel Oxy Blue top load machine, ultra matic 216 3 oxyblue Ariel Oxy Rich anti-stain 170 2 stain removal, oxyrich Henko Henko Stain Champion 109 3 stain Page 26 of 37
  27. 27. Application Exercise – Group -2 removal,oxygen,germs stain removal,oxygen,germs, Henko Stain Champion Matic 165 4 washing machine OFFERINGS - Different Packs Qty. Price Piece/kg RIN Rin 1000 70 70.00 Rin 750 50 66.67 Rin Matic 1000 85 85.00 Rin Matic 500 42 84.00 Rin jasmine 1000 70 70.00 Tide Tide Jasmine & Rose 425 32 75.29 Tide Jasmine & Rose 170 15 88.24 Tide Jasmine & Rose 750 62 82.67 Wheel Wheel Active Gold 300 15 50.00 Henko Mr. White 450 30 66.67 Mr. White 800 52 65.00 No. of Variants Avg. Price / offered Kg. Variety RIN 77 3 Tide 80 1 Wheel 40 1 Henko 65 1 Page 27 of 37
  28. 28. Application Exercise – Group -2 CLAIMED BENEFITS # RIN Avg. Price/kg. Benefits Claimed Benefits Rin 70 1 whiteness Rin Matic 85 2 whiteness,washing machine Rin jasmine 70 2 whiteness,fragrance Tide Tide Jasmine & Rose 82 2 whiteness,fragrance Wheel Wheel Active Gold 50 2 extra whiteness Henko Mr. White 65 1 whiteness OFFERINGS Qty. Price Piece/kg Wheel Wheel Active 600 20 33.33 Wheel Active 560 20 35.71 Wheel Active 275 10 36.36 Nirma NIRMA Powder 300 10 33.33 NIRMA Powder 600 20 33.33 No. of Variants offered Avg. Price / Kg. Variety Wheel 35 1 Nirma 33 1 Page 28 of 37
  29. 29. Application Exercise – Group -2 CLAIMED BENEFITS # Wheel Avg. Price/kg. Benefits Claimed Benefits Wheel Active 33 1 whiteness Nirma NIRMA Powder 33 1 whiteness Appendix-C Perception Data for the detergent industry : as perceived by the authors Number of benefits Ad Brand Packaging Brand Price claimed attractiveness Recall Humor Celebrity Attractiveness Surf Excel BLUE 124 1 3 5 3 2 4 Surf Excel Quick Wash 152 2 4 3 4 2 4 Surf Excel Matic Top Load 175 2 4 5 4 3 4 Surf Excel Matic Front Load 199 2 4 5 4 3 4 Ariel fragrance 168 2 3 3 2 3 3 Ariel Oxy Blue 199 2 2 5 3 2 3 Ariel OxyBlue springclean 146 1 3 4 3 2 3 Ariel Matic Front load 199 2 3 4 3 3 3 Ariel OxyBlue ultramatic 216 3 3 4 3 3 3 Ariel Oxy Rich anti-stain 170 2 3 2 3 2 3 Henko Stain Champion 109 3 2 3 2 4 2 Henko Stain Champion Matic 165 4 2.5 2.5 2 4 2 Page 29 of 37
  30. 30. Application Exercise – Group -2 Survey Questions Readymade Garments Preferences Perception Facets Scores (1 - Important, 5 - Not Important) Cuts and Styles 1.86 Fitting and Size Availability 1.21 Quality of the Fabric 1.71 Perception Facets Scores (1 – Agree, 5 - Disagree) I buy from specific stores! 3.07 I buy a particular set of brands! 3.25 I look out for discount offers for buying clothes! 2.11 Key findings The most important perceptive elements in readymade garments category are Cuts and Styles, Fitting and size availability and the quality of fabric. People tend to notice adverts more in the formal and casual wear sub category. People generaly have a low association with brands in this category Page 30 of 37
  31. 31. Application Exercise – Group -2 Readymade Wear Brand Surveys Perception of the preferred brand Associate – 1, Do Not Associate - 5 Visual Appeal 1.67 Style and Glamour 1.96 Quality of the Fabric, Fittings 1.78 Celebrity Endorsements 3.22 Perception of the preferred brand Agree – 1, Disagree - 5 It is a part of my complete self 2.15 It is a part of memories of my youthful years 3.52 Page 31 of 37
  32. 32. Application Exercise – Group -2 Key findings The most important perceptive elements for choosing a brand are still the basics – quality of the fabric, cuts and style and size and fittings Most of the people have associated their brand image with Entertainment and movies. Credit Card Category Surveys Questions Agree – 1, Disagree - 5 Do you consider credit card as an important lifestyle accessory? 2.64 Is credit card a luxury or a necessity? (1 – Luxury, 5 – Necessity) 3.94 How important is the look and feel of the card design? 3.45 Do you actively seek information with regards to a credit card? 3.21 Would you recommend your credit card service provider to a friend of yours? 2.20 Who is more important for you? Banks or the Providers (Banks – 1, Providers – 5) 2.45 Key findings Credit cards have clearly have moved from luxury items to a necessity item providing Page 32 of 37
  33. 33. Application Exercise – Group -2 flexibility for pricing the features Feature based descriptions, Values based offerings and Safety and Security seems to be primary associations related advertisements of the credit card Credit Card Brand Surveys Key findings Interesting Visa is most used credit card brand can also be related to the value of keeping good credit ratings with the bank As the need has been established, it is being clearly being associated as a utility tool. Page 33 of 37
  34. 34. Application Exercise – Group -2 Watch Category Surveys Perception of the preferred brand Important – 1, Do Not Important - 5 What is importance of owning a wrist watch for you? 2.37 How much the store ambience and after sales service 2.7 influences your watch purchases? Key findings Watch category has strong associations with Spectacles/Goggles and the value of feature set in terms of shape variety is huge Page 34 of 37
  35. 35. Application Exercise – Group -2 Visual appeal of the watch is noticed the most and is the single most important criteria for watch purchase Watch Brands Surveys Perception of the preferred brand How would you rate the designs of your preferred brand? 1.88 (Extremely Attractive – Completely Unattractive) (1-5) How would you rate the quality of shopping experience of 2.2 your preferred brand? (Extremely Appealing – Completely Unappealing) (1-5) How would you rate the quality of after sales service of your 2.12 preferred brand? (Extremely Satisfied – Completely Unsatisfied) (1-5) Page 35 of 37
  36. 36. Application Exercise – Group -2 Key findings Ad Recall is very strong in the watch segment. One of the strongest association is with the medium of Print Ads and Television The most sold brands are sold essentially on the basis of attractive designs along with reasonable pricing Cohorts Perceptions of Luxury - Page 36 of 37
  37. 37. Application Exercise – Group -2 Key Points Titan Nebula is disproportionately highlighted in 35 – 45 years segment. Titan has a recall in 45 and above category as luxury brand. Citizen, Tag Heuer, Tissot appear luxury to the recent generations Key Points Provogue, Park Avenue are not considered luxury be the youngest generation. Nike is a classic example; there is a stark difference of perception of luxury for 35 – 45 years to who are under 45. Same thing applies to Versace Citizen, Tag Heuer, Tissot appeal to the later generation in a major cultural shift which is particular to a generation. Page 37 of 37

×