case study of vardaan bidi

1. positioning
A battle for minds

2. products are created in the factory but the brands are created in minds
Positioning starts with a product a piece of merchandise a service a
company an institution or even a person……. But positioning is not
what you do to a product .positioning is what you do to the mind of
the prospect
The word “positioning” was popularized by two advertising executive
AL RIES and Jack Trout

3. Maruti suzuki 800 Maruti omni Marutu SX 4
Change your life Fits all Men are back

4. It is dangerous and ridiculous to
allow
customers to develop their own
perception
it is the responsibility of the
company to
manage its customer perception

5. • Every fact and act of the company shapes customer perceptions
directly or indirectly
• A company should evaluate its every activity in terms of its role in
creating positive customer perception

6. Elements of positioning
A company has to select the target market in which it will offer its
products
Its very tempting to select the largest or most profitable segment

7. Undifferentiated targeting
• A company using an undifferentiated targeting strategy essentially
adopts a mass market philosophy
• It views the market as a single unified big market with no segments
Who uses this technique ?

8. The first company in an industry normally uses an undifferentiated
targeting strategy
There is no competition at this stage because there is no alternative
available
Ford’s model T is a classical example

9. • The Model T was introduced on October 1, 1908 and so technically
may be considered a 1909 model in line with the industry's practice
of dating cars by model year. Over the next 18 years, the Model T
would dominate US car sales, with half the industry's total output in
1918-1919 and 1921-1925. In 1911-15, 1918, and 1921, Ford earned
more than all other automakers combined.

10. Ford’s model T

11. Concentrated targeting
Concentrated targeting
Companies selects one segment to serve Starbucks became successful
by focusing exclusively on customer who wanted gourmet coffee
products

12. first Starbucks opened in 1971, and it’s
just as true today
share great coffee with our friends
and help make the world a little
better
Seattle’s historic
Pike Place Market

13. Companies following concentrated targeting
strategies are obviously putting all their eggs in one
basket

14. • If their chosen segments become unprofitable or shrink in size the
companies will be in problem the idea is to avoid being labeled as the
company which exclusively serves a particular segment
• Vaseline talcum lack of differentiation
leads to failure of
brand
• Fair and lovely -company decided not to launch after test launching
it in Andhra Pradesh

15. Multi segment targeting
A company following multi segment targeting strategy serves two or
more well defined segments and develops a distinct marketing mix
for each one of them
But the strategy involves greater product design, promotion , inventory

16. • Another potential cost is cannibalization which
occurs when sales of a new product cut into sales of a firms existing
products
If you don’t cannibalize yourself someone else will ---- STEVE
JOBS

21. Differential Advantage
Why would a customer of the target market want to buy my products and not those of
competitors ?
A company which is able to furnish an unambiguous answer has a clear positioning strategy

22. Case of a Vardaan bidi
The tobacco smoking market in India is divided among two products
1 cigarettes 2 Bidis
Roughly 1.5 crore bidis are smoked every hour in the country

23. • Dalmia consumer care launched a tobacco less bidi
“ VARDAAN“
Tobacco less bidi is a completely new concept
Vardaan basic positioning is that it is meant to deliver the safer
alternative to the current bidi smoker

24. People smoke bidi because they get some level of satisfaction and
pleasure out of smoking
This satisfaction and pleasure can be broken into three elements
1 physical experience-shape of the bidis mouthfeel,how long does it take
to finish
2 psychological part of smoking-if someone smokes a cigratte in the dark
room he doesn’t enjoy it because he likes to see the smoke
3 The physiological elements- which is what the tobaco does when it
enters the body it causes cancer

25. Philosophy behind Vardaan
• The philosophy of vardaan was that it can deliver the same level of
satisfaction and pleasure that a person gets from a normal bidi but
without the ill effect of tobacco therefore the tagline of Vardaan was
Dam wahi par dosh nahi

26. The existing tobacco bidi in the market is
Pataka 501,502

27. The idea behind choosing the name
Vardaan was that brand should carry the personality and the
character of the brand
Also the company wanted a name that means the same in all the 9
languages of the regional markets the company was going to enter
and it wanted to get away from the number game 501,502

28. The promotional activity
Promotional activity is broken into two parts
1 there was an element of brand building the kind of model was very
simple ,rugged down to earth character the kind of person a bidi
user aspire to be
2 The co always talked about the core character of the brand that is it
did not contain tobacco and was a safer alternative to bidi smoking

29. clever
• It informed the person first about the ills of the tobacco smoking and
seconed that there was an alternative called
vardaan

31. • The company decided that print will also be its most important
medium, that too vernacular press rather than the mainstream eng
language
• When vardaan was launched in west bengal durgapur it was involved
with the cancer camps .thereby conveying to the audience
Tobacco kills but vardaan
saves

32. Differentiation and marketing mix
• A company’s positioning is a result of whatever the company does
,marketing mix(what is marketing mix)
Image of the co is so strong that if it sells poison in the name of the
sweet customer will buy
• Marketing mix is the most tangible and most flexible tool to create
the desired positioning companies

33. Differentiation strategies
• Product differentiation
• Personnel Differentiation
• Channel differentiation

34. Tata
Annapurna Captain cook,nature fresh,dandi and
catch

35. HUL
Indo brine
industries
DS group Dharampal
satya pal

36. Tata salt continues to be the market leader(brand name and co image)
Other significant significant branded player include Maricos Saffola
possitioned as a niche low sodium brand and Nirma Shudh

37. differentiators
• Free flowing influences brand purchases
• Iodized even though salt is a low value
• Granular low involvement product with
• Vacuum evaporation with few differentiators
of significance

38. Table salt
• Table salt has remained the strong hold of the DS group
( table salt has less than 1% impurity compared to 30-40 in kitchen
salt)