Delaware India's skincare brand Taru is losing brand loyalty and market share as it fails to offer new product categories or a clear brand proposition. Customers are shifting to other brands that meet their changing needs. While the commercial head wants to replace Taru with a new premium brand from Germany called Lara, the profit center head believes Taru can regain loyalty by satisfying customer demands and offering incentive programs. The company plans to introduce Lara alongside Taru and capture more of the market through varied products, clear benefits, and promotions targeting all age groups. Understanding evolving consumer behavior is seen as key to increasing and retaining the brand.
2. Delaware India – Personal Care
• Delaware has a skincare brand Taru-all
purpose cream with Brand Equity.
• Now Taru is losing its Brand Association in the
skincare market.
• Delaware has tied up with Progg of Germany
to launch premium Lara range products.
• Varun Krishnan – Commercial Head of
Personal Care Division.
• Joydeep Rudra – Profit center head of
Delaware Skincare Division.
3. Taru’s Critical Issues
• Taru fails to retain its loyalty among consumers.
• Taru fails to offer new categories of product like
rivalry companies, to fulfill the need of wide
range of consumers.
• Taru has no clear proposition.
• Taru started to get stale, not only young
consumers, old consumers also shifting to other
new brands.
• Delaware lacks in investment in marketing on
behalf of Taru.
4. Company’s Belief on Brand
• Brand will create loyal beliefs about the
product.
• Branding wont increase the cost of sales.
• Routine consumers will be 100% loyal to
the brand.
• People will fall in love with brands.
• Brand will carry on from generation to
generation.
5. Customer’s Expectation from Brand
• Customers are trying to find what they really
want and they’ll be satisfied if product is from
their favorite brand.
• Customers will be satisfied if their brand bring
the products with all sort of category.
• By experience customers feel that particular
brand can give assured quality product.
• Customers expect hygienic, traditional, instant
and complacent products with aesthetic
package exclusively from their favorite brand.
6. Rudra’s View
• Rudra wanted Taru to be replaced by Lara to launch
variety of skincare products.
• It takes long time for consumers to become loyal to
the brand, e.g., premium products Coty, Oriflame
and Revlon.
• It is necessary to focus on changing needs of the
customer. The brand loses its customers, if it fails to
satisfy the unfulfilled need, e.g., Colgate and Taru.
• Colgate and Taru failed to meet the new market. Its
competitors Close Up and Coty captured the new
market.
7. Contd.
• Rewarding customers to retain loyalty and attract
new customers to buy the brand, e.g., ‘collect five
wrappers of Cadbury Dairy Milk and get cricket cap
free’.
• Reward schemes increase the consumption of a
brand and penetrates the market, e.g., ‘Coca-cola
and Pepsi’.
• 100% loyal customers always prefer to continue their
brand. It depends whether the customer is loyal to
brand or its category, e.g., ‘Marlboro Gold and
Benson and Hedges Cigarette’.
• Rudra’s view is to ensure brand loyalty to retain the
solus consumers.
8. Krishnan’s View
• Krishnan feels that the tie up with Lara will
decrease the brand loyalty of Taru.
• Loyalty is followed by inception and growth:-
– Consumers are keen to have a good incentive
schemes for the brand, e.g., Pepsi and Coca-
Cola
– Consumers are loyal to certain packaging of
brand, e.g., Flora and Sunflower Oil
– Krishnan’s question is how to promote the
brand after losing its loyalty
9. Company’s Strategy
• Variety is good for business, e.g., Moov
• Difference in purpose of product, e.g., Johnson &
Johnson
• Change to current technology and economic
level, e.g., Bajaj
• Create good promotion and showing the real
intention of the product, e.g., NDTV 24x7
• Clear definition of benefits. It will incorporate the
product in the customer’s usage pattern, e.g., Apple
Computer
• Company should attract consumer’s from all age
groups, e.g., Horlicks Foodles
10. Contd.
• Should be suitable for the old culture and
to modern lifestyle of the people, to
whom they are selling the
products, e.g., Meera
• Winning competitors
customers, e.g., Surf and Ariel (increased
volume)
• Company should go for POP and POD
strategies. Taru should show POP in its
category level and POD in quantity
11. Contd.
• Company should retain its old customers
and at the same time they have to attract
non-users. Company can change the
purpose but not its quality.
• Company has to increase the quantum sole
users and motivate the non-users to buy
their products, e.g., sachet shampoos
• According to the consumer needs, modify
the marketing and producing volumes
12. Conclusion
• Taru has to follow all strategies mentioned.
• Introduce the Lara range of products into the
market and try to capture the market share
targeting all kinds of consumers.
• Understanding consumers, requires use of
sophistication in terms of both theories
applied and methods used in the company.
• Understanding consumer behavior is a vital
aspect of marketing.
• Analyses in these areas will help to increase
and retain the brand.