Vicco Turmeric cream and Vajradanti toothpaste were once very successful Ayurvedic brands, but lost market share due to failing to evolve with changing customer needs and preferences. Vicco's flagship Turmeric cream was initially targeted at women seeking fairness for marriage, but as women became more independent since the 1990s, competitors repositioned to appeal to new aspirations while Vicco relied on outdated marketing. Vicco also did not anticipate changing packaging and product preferences, continuing with the same promotions and positioning. This failure to understand and respond to its target audience led to lost market share to competitors.
Aqualisa Quartz - Simply A Better Shower (HBR Case Study)Arjun Parekh
Probable Solution to HBR Case on Aqualisa Quartz. The Presentation consists of info about Channel Distribution, Development of Quartz Shower Valve, UK Shower Market, Initial Sales Results, 4Ps of Marketing for Aqualisa, A shift in Marketing Strategy.
Mortein Vaporizer: What lies beneath Brand Positioning?
Debasis Pradhan and Divya Agrawal
Hari Panda, the brand manager of Mortein Vaporizer, could not keep his
Aqualisa Quartz - Simply A Better Shower (HBR Case Study)Arjun Parekh
Probable Solution to HBR Case on Aqualisa Quartz. The Presentation consists of info about Channel Distribution, Development of Quartz Shower Valve, UK Shower Market, Initial Sales Results, 4Ps of Marketing for Aqualisa, A shift in Marketing Strategy.
Mortein Vaporizer: What lies beneath Brand Positioning?
Debasis Pradhan and Divya Agrawal
Hari Panda, the brand manager of Mortein Vaporizer, could not keep his
Fair & lovely - A case study on marketing strategies of fairness cream brands.Ahtezaz Parways
This PowerPoint Presentation is about the marketing strategies of various fairness cream brands categorized under : Market leader, Market Challenger, Market Follower and Market Nicher. It is made by referencing the Hard Copy of a Case study named : Fair & Lovely : Creating Demand.
Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka Cita
Winona China market strategy report by daxue consultingDaxue Consulting
China has become the world’s second largest beauty market since 2019 and more Chinese beauty brands start to rise in the market. In order to study the 2021 C-beauty trends that brands don't want to miss, daxue consulting investigated the market strategies of four of the top C-beauty brands, 1) Perfect Diary 2) Florasis 3) HomeFacial Pro 4) Winona.
Fair & lovely - A case study on marketing strategies of fairness cream brands.Ahtezaz Parways
This PowerPoint Presentation is about the marketing strategies of various fairness cream brands categorized under : Market leader, Market Challenger, Market Follower and Market Nicher. It is made by referencing the Hard Copy of a Case study named : Fair & Lovely : Creating Demand.
Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka Cita
Winona China market strategy report by daxue consultingDaxue Consulting
China has become the world’s second largest beauty market since 2019 and more Chinese beauty brands start to rise in the market. In order to study the 2021 C-beauty trends that brands don't want to miss, daxue consulting investigated the market strategies of four of the top C-beauty brands, 1) Perfect Diary 2) Florasis 3) HomeFacial Pro 4) Winona.
Olay global competitiveness
On October 4, 2017, Procter & Gamble (P&G) North America Skin Care General Manager Chris Heiert received an email from a senior leader.
Any perspective on Jul/Aug/Sep Olay sales? The sales report shows sales are -12%, a significant miss on a low estimate. My guess is there must be some special causes in the quarter and wanted to get your thoughts on whether the plan will return Olay sales to grow in Oct/Nov/Dec and whether you still plan to deliver your sales growth promised for the fiscal year.
Heiert had seen good and bad quarters at Olay, a P&G-owned brand, over the course of his career. When he first joined as an Assistant Brand Manager in 2000, Olay was just establishing itself as the leading skincare brand in the world.
By the time Heiert rejoined the brand in 2015, however, Olay’s sales had been declining consistently for several years. Each year, Olay lost 5% to 10% of its consumer base for the past five years. Every valiant attempt to fix the situation failed. From its peak at over $2 billion in retail sales in 2009, sales had fallen to just over $1 billion in retail sales by fiscal year 2017. (See Exhibit 1a for Olay’s global sales growth year-over-year since 2000 and Exhibit 1b for U.S. sales from 2010-2016.)
Heiert needed to act fast to revive Olay. But how? There was no shortage of ideas on the table—he and his team debated everything from brand equity, new consumer groups, kickstarting innovation, altering their marketing and distribution models, and what categories the brand should play in.
The brand needed an immediate turnaround. If Olay could not reverse course, P&G might consider divesting the brand. In a deal in 2015, P&G had already sold off 43 beauty brands to Coty Inc.
Marketing presentation on FIAMA Di Wills Gel Bar By ITCDinker Vaid
The Case study of this Soap Gel Bar explains how ITC deeper Penetration of Distribution Channel helped this FMCG product grow and reach in market so easily.
Positioning Imperial leather as the Best Selling LuxurySoapAsher Wilson
Marketing strategies for market dominance and improved visibility of the Imperial leather brand on the Ghanaian market.
Did this as part of the Graduate Trainee recruitment process at PZ Cussons Ghana.
Exploring the Top Digital Marketing Company in CanadaSolomo Media
Choosing Solomo Media as your digital marketing company in Canada can propel your business to new heights. With their expertise, innovative solutions, and client-centric approach, they are well-equipped to help you achieve your digital marketing goals. By focusing on strategic planning, leveraging cutting-edge tools, and delivering measurable results, Solomo Media proves to be a valuable partner in navigating the complex world of digital marketing.
As 2023 proved, the next few years may be shaped by market volatility and artificial intelligence services such as OpenAI's ChatGPT and Perplexity.ai. Your brand will increasingly compete for attention with Google, Apple, OpenAI, and Amazon, and customers will expect a hyper-relevant and individualized experience from every business at any moment. New state-legislated data privacy laws and several FTC rules may challenge marketers to deliver contextually relevant customer experiences, much less reach unknown prospective buyers. Are you ready?Let's discuss the critical need for data governance and applied AI for your business rather than relying on public AI models. As AI permeates society and all industries, learn how to be future-ready, compliant, and confidentlyscaling growth.
Key Takeaways:
Primary Learning Objective
1: Grasp when artificial general intelligence (""AGI"") will arrive, and how your brand can navigate the consequences. Primary Learning Objective
2: Gain an accurate analysis of the continuously developing customer journey and business intelligence. Primary Learning Objective
3: Grow revenue at lower costs with more efficient marketing and business operations.
Google Ads Vs Social Media Ads-A comparative analysisakashrawdot
Explore the differences, advantages, and strategies of using Google Ads vs Social Media Ads for online advertising. This presentation will provide insights into how each platform operates, their unique features, and how they can be leveraged to achieve marketing goals.
The Secret to Engaging Modern Consumers: Journey Mapping and Personalization
In today's digital landscape, understanding the customer's journey and delivering personalized experiences are paramount. This masterclass delves into the art of consumer journey mapping, a powerful technique that visualizes the entire customer experience across touchpoints. Attendees will learn how to create detailed journey maps, identify pain points, and uncover opportunities for optimization. The presentation also explores personalization strategies that leverage data and technology to tailor content, products, and experiences to individual customers. From real-time personalization to predictive analytics, attendees will gain insights into cutting-edge approaches that drive engagement and loyalty.
Key Takeaways:
Current consumer landscape; Steps to mapping an effective consumer journey; Understanding the value of personalization; Integrating mapping and personalization for success; Brands that are getting It right!; Best Practices; Future Trends
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
The session includes a brief history of the evolution of search before diving into the roles technology, content, and links play in developing a powerful SEO strategy in a world of Generative AI and social search. Discover how to optimize for TikTok searches, Google's Gemini, and Search Generative Experience while developing a powerful arsenal of tools and templates to help maximize the effectiveness of your SEO initiatives.
Key Takeaways:
Understand how search engines work
Be able to find out where your users search
Know what is required for each discipline of SEO
Feel confident creating an SEO Plan
Confidently measure SEO performance
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Mastering Dynamic Web Designing A Comprehensive Guide.pdfIbrandizer
Dynamic Web Designing involves creating interactive and adaptable web pages that respond to user input and change dynamically, enhancing user experience with real-time data, animations, and personalized content tailored to individual preferences.
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
In today's digital world, customers are just a click away. "Grow Your Business Online: Introduction to Digital Marketing" dives into the exciting world of digital marketing, equipping you with the tools and strategies to reach new audiences, expand your reach, and ultimately grow your business.
website = https://digitaldiscovery.institute/
address = C 210 A Industrial Area, Phase 8B, Sahibzada Ajit Singh Nagar, Punjab 140308
First Things First: Building and Effective Marketing Strategy
Too many companies (and marketers) jump straight into activation planning without formalizing a marketing strategy. It may seem tedious, but analyzing the mindset of your targeted audiences and identifying the messaging points most likely to resonate with them is time well spent. That process is also a great opportunity for marketers to collaborate with sales leaders and account managers on a galvanized go-to-market approach. I’ll walk you through the methods and tools we use with our clients to ensure campaign success.
Key Takeaways:
-Recognize the critical role of strategy in marketing
-Learn our approach for building an actionable, effective marketing strategy
-Receive templates and guides for developing a marketing strategy
The Forgotten Secret Weapon of Digital Marketing: Email
Digital marketing is a rapidly changing, ever evolving industry--Influencers, Threads, X, AI, etc. But one of the most effective digital marketing tools is also one of the oldest: Email. Find out from two Houston-based digital experts how to maximize your results from email.
Key Takeaways:
Email has the best ROI of any digital tactic
It can be used at any stage of the customer journey
It is increasingly important as the cookie-less future gets closer and closer
Short video marketing has sweeped the nation and is the fastest way to build an online brand on social media in 2024. In this session you will learn:- What is short video marketing- Which platforms work best for your business- Content strategies that are on brand for your business- How to sell organically without paying for ads.
QuickBooks Sync Manager Repair Tool- What You Need to Knowmarkmargaret23
Occurrence of technical errors on QuickBooks is common but it can be resolved with the use of QuickBooks Sync Manager Tool . With the help of this too, users can sync the QuickBooks Desktop company file with the Intuit online server. It is compatible with versions QuickBooks Pro, Premier, or Enterprise. In case a user faces sync-related errors then they simply need this repair tool.
Dive deep into the cutting-edge strategies we're employing to revolutionize our web presence in the age of AI-driven search. As Gen Z reshapes the digital realm, discover how we can bridge the generational divide. Unlock the synergistic power of PPC, social media, and SEO, driving unparalleled revenues for our projects.
1. Analyse the reasons for failure of the brand (5)
Design a revival strategy with respect to the following
1. SWOT analysis of the company (10)
2. Brand re-positioning (5)
3. Customer segmentation (5)
4. Marketing mix strategy – product, pricing, promotion, distribution (8)
5. Market expansion / Growth strategy – intensive / integrative / diversification (7)
.
Evaluation
This assignment carries 40 marks
It should be in the form of a report, TNR 12, 1.5 spacing.
Time duration is two weeks
Vicco turmeric and vajradanti
Reasons for failure of the brand
Founded in 1952 by late K V Pendharkar, Vicco group had carved its niche as a maker of distinct
ayurvedic products, with Vicco Vajradanti powder and paste and Vicco Turmeric skin cream.
Today, the group's annual turnover is estimated at about Rs 400 crore and Vicco products account
for only 4% of the country's toothpaste market.
It could not capture new consumers and remained static
At a point of time were one of the most renowned Ayurvedic product manufacturers over the
world. Their most famous products included Vicco Turmeric cream and Vicco Vajradanti. The
flagship product, Vicco Turmeric, was targeted towards the young woman, who was about to get
married. During the late 80s and early 90s, marriage was the most important and the most
celebrated occassion of a woman’s life. Vicco appealed to that particular segment of the market,
with its product, which was also not earmarked as a cosmetic, but as a natural alternative. Most of
Vicco’s competitors also had taken and exploited the path by ‘marriage aspiration’ route but they
changed the course with the evolution of the modern woman whereas Vicco stuck to the same and
lost market share. Vicco did not anticipate the change in the stance of the target audience. Not
acknowledging the fact the modern woman was becoming self independent and confident, thus
2. making marriage one of the many other reasons to celebrate, primarily caused its downfall.
The product was a huge hit among the women consumers who preferred natural treatment in place
of chemical cosmetics for their skin. The pioneers of the fairness cream were quite successful in
building the brand image on the minds of consumers as ayurvedic cream.
By 1990’s the aspirations of Vicco’s target audience was changing. During the later 90’s Indian
women was transforming to be more independent and self reliable. Vicco’s target group was not
only celebrating marriage but also many other occasions. Vicco’s competitors, Fair n Lovely and
Cavin Kare realized the changing value of the customers and started re-positioning their product to
appeal the new aspirations of their target consumers whereas Vicco stayed where they began.
Vicco continued with the same packaging and same jingles for their brand. They continued to
emphasize marriage as the only occasion woman celebrate while the consumers were changing on
other side. This can be said as a perfect example of Marketing Myopia where Vicco failed to gain
an insight on the needs of consumers. This approach saw Vicco losing its market share to HUL’s
Fair n lovely.
Parent Company
Vicco
Category
Personal care- Skin care
Sector
FMCG
Tagline/ Slogan
Twacha ki raksha kare vicco turmeric Ayurvedic cream
USP
Combined goodness of Turmeric which protects from UV rays and sandalwood oil which provides
coolness
STP
3. Segment
Herbal skin cream
Target Group
Entire middle class family
Positioning
Being pure and natural, with all the wonderful attributes of turmeric and sandalwood oil, Vicco
Turmeric Cream gives the skin a radiance that mere cosmetics can't hold a light to
SWOT Analysis
Strength
1. Strong brand recall- it being amongst the first to advertise, sonic branding has been very
successful, people still remember it by its jingle
2. Totally Ayurvedic enriched with natural do-good ingredients
3. A multipurpose cream that not only protects skin from damage through pimples etc but also
revitalizes the skin
4. Good availability and distribution due to strong parent brand
5. Strong legacy of the brand makes it very popular amongst the consumers
Weakness
1. No new advertisements for the product, the effect of old ads have faded away by now
2. It is comparatively high priced and not many SKUs at different price points are available
3.The antiseptic proposition is alone not sufficient to compete in mass market skin care category
Opportunity
1. Introduce brand extensions to occupy more shelf spaces and increased visibility
2. Start fresh advertisements with the same jingle to establish its position back into consumer
minds
3. Making it available in smaller SKUs and at varied price points will help increasing the
4. consumer base
Threats
1. Intense competition leading to frequent value for money deals & discounts
2. Distribution problems due to the cluttered segment & scattered market
3. Spurious look-alike brands
Vicco Vajradanti Paste
Parent Company
Vicco
Category
FMCG
Sector
Oral care
Tagline/ Slogan
Ayurvedic jadibootiyo se bana sampoorna swadeshi
USP
Contains the pure extracts of 20 herbs and barks, tested over generations, that have been blended
into a potent combination that not only cleans teeth, but also protects and strengthens them
STP
5. Segment
Medicated toothpaste
Target Group
Lower and middle class in rural areas
Positioning
Gives strong gums, which makes the bite mighty, which no cosmetic toothpaste can ever give.
SWOT Analysis
Strength
1. A heritage brand with the trust of Vicco associated to it.
2. Natural ingredients
3. Strong brand recall- it being amongst the first to advertise, sonic branding has been very
successful, people still remember it by its jingle
4. Good availability in the rural and semi-urban areas
Weakness
1. Vicco is not advertising and promoting the product aggressively now
2. Less brand awareness in urban and semi-urban areas, which is also potential target group
Opportunity
1. Can target urban population with rising consciousness for natural chemical free products.
2. Re-enter the consumer mindspace by starting advertisements again keeping the same jingles.
Threats
1. Not much awareness in the market regarding the effectiveness of the product.
2. Lot of competition in the market from regular toothpaste brands.
6. 3. With rising incomes, people have started migrating from inexpensive local brands and prefer
international brands
Competition
Competitors
1. Dabur Lal Toothpaste
2. Colgate
3. Meswak
Product
Vicco was in the ‘naturals’ segment of the beauty industry. Vicco Turmeric, the flagship product, is
still recognized by many in the industry as one of the best products till date. Not only in the
country, Vicco Turmeric was successfully exported to many countries. Vicco Turmeric contained
16% turmeric and 0.5%sandalwood. The process of manufacturing was clearly defined on the
packs which depicted Vicco’s confidence. The product had a strong aroma of sandalwood oil
which became synonymous with the brand. Though, at the early stages the yellow color of the
cream was a deterrent (other beauty cream were white), but due to its effectiveness and Word of
Mouth publicity, Vicco became a rage in the country.
All in all, at this juncture one can conclude that Vicco Turmeric was an excellent and
revolutionary product.
Packaging
Vicco was one of the first brands to promise ayurvedic beauty care in a tube. At that point, its
competitors were HUL’s Fair and Lovely, CavinKare’s Fairever and Emami’s various skin
products. Vicco had an advantage of a superior natural product over them but when it came to
packaging, it scored very low. All the competitors had evolving packaging to lure their target
group whereas Vicco stuck to the reddish orange tube. It understood the value of packaging very
late and hastily brought in two-three variations but that ended up confusing the TG and hurt them
severely
The three new introductions were brought out in a very little time. In fact that was the primary
reason for generating all the confusion. The packaging killed its distinctness and slowly it moved
towards a packaging which was similar to ‘Fair and Lovely’. The Vicco loyalists had just wanted a
good packaging which was misinterpreted as ‘similar to competitor packaging’.
Promotions
7. Most of the population who are in the 20+ age group distinctly remember the Vicco Turmeric
Cream and this can be primarily attributed to its super famous jingle’ “Vicco turmeric, nahi
cosmetic, Vicco turmeric ayurvedic cream…”. Vicco used 3 different advertisements, one of which
starred famous actress Sangeeta Bijlani and another starring Mrunal Kulkarni. Both of them
registered and instant connect with the audience which was supported by Vicco’s inherent theme
of marriage being the biggest occasion in a woman’s life. In the initial years, the brand thus
captured heavy market share. They also successfully bought TV ad spots during Chitrahaar,
Rangoli to reach a wider population base. Moreover, Vicco was among the first brands to start the
mystery buyer program which was eventually not leveraged.
But the ads were not revived and same ads were relayed year after year though consumer
preferences were changing. Not using consumer insights for their executional idea and relying
heavily on their blockbuster product was a costly mistake and they lost all market share.
Eventually the ads were also faded off.
Understanding Consumer
As already discussed above, Vicco serves as a classic example of Marketing Myopia. In the early
90s, the woman in the country was evolving. She was becoming self confident and independent
and had started progressing. But the Vicco advertisements emphasized on marriage being the
single biggest achievement/occasion in her life. This mismatch was due to their lack of customer
insights. If they had proper access to what their target group actually wanted, they might have
implemented the insights in the copy strategy. The competition thus started overtaking Vicco, in
terms of advertising and positioning, and the conservative approach of Vicco saw it lose to HUL
Fair and Lovely.
We can conclude by saying that Vicco excelled when it came to the product and promotions(at that
particular time) but their lack of the understanding of their evolving customer base, continuation
with the same theme in their ads and highly ordinary packaging cost them their market share
SWOT :
Brand experts say Vicco may not command a high valuation as it failed to keep pace with
consumer trends though it continues to hold brand recall and strong equity.
Vicco was one of the earliest brands which promised, and advertised, beauty care in a tube. They
used the medium of cinema extensively and had long-standing appeal.
Brand Repositioning
Repositioning refers to the major changes in positioning for the brand/product. To successfully
reposition a product, the firm has to change the target market’s understanding of the product.
Firms may consider repositioning a product due to declining performance or due to major shifts in
the environment. Many firms choose to launch a new product (or brand) instead of repositioning
because of the effort and cost required to successfully implement the change
The segments it plays in are majorly driven by the population under 30 years of age, and the brand
8. fails to connect with this major segment. The brand has stuck to its age-old branding ways and has
failed to pay sufficient attention to its packaging, branding, advertisements, etc. For a market that
is getting more and more thinly sliced in terms of product differentiation and the benefits offered
by the products, Vicco offers highly generalized products with no significant differentiation,
ending up becoming a simple ‘me-too’ brand that is mostly ignored while making purchase
decisions. In a market that is promoting separate creams for day use and night use, separate
fairness creams for different skin types and for different skin problems as well as for different
seasons and age-groups and sexes; Vicco Turmeric and Vicco Fairness Cream appear as very
generalized offerings with a one-size-fits-all being declared as suitable for all seasons, all sexes,
all age groups, all purposes and all needs. At the same time, when toothpastes are being
differentiated for sensitive teeth, whitening, gum care, family use, fresh breath, youth, etc. Vicco
Toothpaste is a general offering for whoever wants strong teeth – Indians, foreigners, kids, elders
all included in one. In the Indian market scenario, where majority of the consumers belong to the
young, fast-moving and aspirational generation, Vicco does not establish the kind of connect that
an FMCG brand in its category requires in order to be minimally successful in the market.
New brands like Shahnaz or Himalaya and even Dabur have been a lot more successful than Vicco
has been. Over the years, all its competitors changed their outlook, their commercials, re-defined
their target markets and communication strategies and grew; but Vicco continued to remain where
it was. In a way, Vicco can be claimed as a classic example of a marketing myopia that often
plagues successful brands and ends up making them complacent and taking their success for
granted. The target audience for Vicco has changed its perspectives completely from what it used
to be when Vicco started, which the brand is taking its own time to understand and realize.
To save Vicco, the company first needs to re-brand itself. Launching new contemporary
communications on a large scale aggressively would be required as soon as possible. Bringing
some contemporary endorsers on board would indeed be helpful. It would have differentiated its
products clearly, as to what particular ingredient they wish to encash upon, and what particular
positioning they desire in their target audience minds. Defining the target audience clearly would
also be required. An introspection of what is desired and what is being done would help a lot.
Strategy –
you will need to create a flexible strategy that can respond to changes in customer perceptions and
demand. It may also help you identify whole new markets that you can successfully target.
The purpose of your marketing strategy should be to identify and then communicate the benefits
of your business offering to your target market.
Once you have created and implemented your strategy, monitor its effectiveness and make any
adjustments required to maintain its success.
One of the key elements of a successful marketing strategy is the acknowledgement that your
existing and potential customers will fall into particular groups or segments, characterized by their
"needs". Identifying these groups and their needs through market research, and then addressing
them more successfully than your competitors, should be the focus of your strategy.
You can then create a marketing strategy that makes the most of your strengths and matches them
9. to the needs of the customers you want to target. For example, if a particular group of customers is
looking for quality first and foremost, then any marketing activity aimed at them should draw
attention to the high quality service you can provide.
Once this has been completed, decide on the best marketing activity that will ensure your target
market know about the products or services you offer, and why they meet their needs.
This could be achieved through various forms of advertising, exhibitions, public relations
initiatives, Internet activity and by creating an effective "point of sale" strategy if you rely on
others to actually sell your products. Limit your activities to those methods you think will work
best, avoiding spreading your budget too thinly.
A key element often overlooked is that of monitoring and evaluating how effective your strategy
has been. This control element not only helps you see how the strategy is performing in practice, it
can also help inform your future marketing strategy. A simple device is to ask each new customer
how they heard about your business.
Once you have decided on your marketing strategy, draw up a marketing plan to set out how you
plan to execute and evaluate the success of that strategy. The plan should be constantly reviewed
so it can respond quickly to changes in customer needs and attitudes in your industry, and in the
broader economic climate.
Strengths could include:
· personal and flexible customer service
· special features or benefits that your product offers
· specialist knowledge or skills
Weaknesses could include:
· limited financial resources
· lack of an established reputation
· inefficient accounting systems
Opportunities could include:
· increased demand from a particular market sector
· using the Internet to reach new markets
· new technologies that allow you to improve product quality
Threats could include:
· the emergence of a new competitor
· more sophisticated, attractive or cheaper versions of your product or service
· new legislation increasing your costs
· a downturn in the economy, reducing overall demand
Questions to ask when developing your strategy
1. What changes are taking place in our business environment? Are these opportunities or
threats?
2. What are our strengths and weaknesses?
3. What do I want to achieve? Set clear, realistic objectives.
4. What are customers looking for? What are their needs?
5. Which customers are the most profitable?
6. How will I target the right potential customers? Are there groups that I can target effectively?
7. What's the best way of communicating with them?
10. 8. Could I improve my customer service? This can be a low-cost way of gaining a competitive
advantage over rivals, keeping customers, boosting sales and building a good reputation.
9. Could changing my products or services increase sales and profitability? Most products need
to be continuously updated to maintain competitiveness.
10. Could extending my product list or service provision meet existing customers' needs more
effectively? Remember that selling to existing customers is generally more cost effective than
continually trying to find new ones.
11. How will I price my product or service? Although prices need to be competitive, most
businesses find that trying to compete on price alone is a poor strategy. What else are my
customers interested in? Quality? Reliability? Efficiency? Value for money?
12. What is the best way of distributing and selling my products?
13. How can I best promote my products? Options might include advertising, direct marketing,
exhibiting at trade fairs, PR or marketing on the web.
14. How can I tell if my marketing is effective? Check how your customers find out about your
business. A small-scale trial can be a good way of testing a marketing strategy without committing
to excessive costs.
Consider whether you can sell more to your existing customers or look at ways of improving the
retention of key customers.
Focus on the market
Your marketing strategy document should:
· analyse the different needs of different groups of customers
· focus on a market niche where you can be the best
· aim to put most of your efforts into the 20 per cent of customers who provide 80 per cent of
profits
Don't forget the follow-up
· Approach a third party for feedback about your strategy - they may be able to spot any gaps
or weaknesses that you can't see.
· Put your marketing strategy into effect with a marketing plan that sets out the aims, actions,
dates, costs, resources and effective selling programmes.
· Measure the effectiveness of what you do. Be prepared to change things that aren't working.
Pitfalls to avoid
· Making assumptions about what customers want.
· Ignoring the competition.
· Trying to compete on price alone.
· Relying on too few customers.
· Trying to grow too quickly.
· Becoming complacent about what you offer and failing to innovate.
Market Segmentation:
Personal care and beauty are growing markets as affluence increases, as populations age, and
as the desire to conform to a particular image becomes an important issue. Consumers are
becoming increasingly demanding, with a need for premium products and an increasing
expectation of dramatic benefits from products at all levels.
11. This is further complicated in globalised markets, where definitions of beauty can be very
different in different regions.
As every customer has unique needs and expectations towards certain products, the ultimate goal
of market segmentation is to organize customers into groups which allows targeting of customers
with similar needs of and response to the products. The key is to minimize differentiation within
each segment and maximize variation across segments.
Generally, skin care products can be segmented based on four main categories: geographic,
demographic, psychographic and behaviour. To begin with, geographic is an important factor in
separating the skin care markets. People in various countries and continents basically shape their
difference in needs of skin care products. Women in different climatic conditions and with
different skin colours will have completely different skin concerns. For example, women in inland
area with a dry climate will demand skin care products with higher moisture content compared to
those in the coastal regions. Asian women are more inclined to whitening function than black and
white women. In contrast, white women are more likely to have brown spots than yellow and
black women. Demographic segmentation separates customers according to their ages, genders,
income levels,.
Within the market there are several distinct channels of distribution/price point classifications.
They are:
· Prestige--department and specialty stores (Macy's, Neiman-Marcus, Fred Segal and
Sephora)
· Broad--mass merchandisers, cosmetic discounters, drug stores, food stores and wholesale
clubs (Costco, Sam's Club, etc.)
· Alternate--direct sales (Avon, Mary Kay)
· Specialty--(Body Shop, Bath and Body Works), Spas and Salons
In addition there has been a democratization of luxury. The upper-class family group is massive.
More than eight million households have incomes above $100,000. Luxury spending is growing
four times faster than overall spending. Working women of all ages have more money and they are
spending it on personal luxuries. This is a reaction to the chaos of 24/7 consumerism. She'll buy,
but she wants more than just another product. She is not seeking empowerment--she is
empowered. She is choosing to take better care of herself and others. She is looking for peace,
solutions and fulfillment. Purchasing has moved beyond price. The Price:Value ratio has become
more meaningful. She is seeking a "value added" experience or product. Our strategy of combined
channels of distribution allows us to fit into her schedule while our product philosophy provides
her with the benefits she is seeking.
Our target customers (vs. end user) for wholesale distribution will be resellers who recognize the
needs of this consumer and who she identifies with. We have used the term resellers because they
will not be limited to retailers. We will reach the consumer through four distinct reseller channels.
12. 1. Spas and Health Clubs:
Most high-quality day spas and health clubs (and many upscale spas at resort properties)
use generic products. (Much like the hair salon industry before Aveda.) Our goal will be
to develop affiliations with select spas in urban areas and vacation destinations. Our
manufacturing partnerships will allow us to offer these customers bulk product at
favorable prices to them while allowing us excellent margins.
2. Lifestyle Retailers:
Our target retailer will be lifestyle-based rather than the typical soaps and potions or
natural product retailers. These retailers exist in almost every city. Whether it is Wilkes
Bashford in San Francisco, Mario's in Seattle, Harold's in several south central cities,
Fred Segal in Los Angeles, Bergdorf Goodman in New York or Colette in Paris. These
retailers have developed a loyal and sophisticated customer base. They understand the
concept of lifestyle.
3. Cosmetic Specialty Retailers:
Sephora is the major force in this category.
4. Boutique Department Stores:
This category is composed of what was once called "Carriage Trade" retailers. We will
limit our distribution within this segment to Saks, Niemans and Barneys.
he Zydus Group flagship is eyeing targets in segments like anti-wrinkle cream, bleaching cream,
under eye cream as well as hair care
he skin care market can be segregated into toners, cleansers, sunscreens, anti-wrinkle creams dark
However, within a period of five-six years, the use of skin care products has increased
significantly in India. With changing life styles, increase in disposable incomes, greater product
choice and availability, and influence of satellite television, more
people are taking interest in personal grooming. The facial skin care market is booming. Products
are competing with one another to take shelf space in the retail stores. Facial skin care products
have become an essential part of the beauty market. Like western countries, creams and potions
are applied in India also, in an effort to remove the pimples and the acne, fight stress and worry
lines, and to remain young. Since the penetration level is still relatively low, growth is expected to
be around 25% over the next five years.
Some of the major players in this segment are Hindustan Lever (Fair & Lovely, Lakme, Ponds)
13. with a market share of 53%, followed by CavinKare- Fairever with a market share of over12 %
and Godrej-Fair Glow with a market share of 3.4 %. The other players that have a presence in the
market are Emami (Gold Turmeric and Naturally Fair), Revlon (Fair & Glow).
-circle removing creams, astringents, facial creams, moisturizers, fairness creams, day and night
creams, etc. Out of these, facial creams, moisturizers, fairness creams, day and night creams, etc.
are the most popular products and account for approximately 60% of the skin care segment.
Product
Intoduce new products
And line extension based on size, flavour color
he company improved the product to make it more effective and more consumer-friendly.
Beiersdorf tested the improved products on a sample group from its target
audience before finalising the range for re-launch. This testing resulted in a number of
changes to existing products. Improvements included:
· changing the formula of some products. For example, it removed alcohol from one product and
used natural sea salts and minerals in others
· introducing two completely new products
· a new modern pack design with a flower pattern and softer colours to appeal to younger women
· changing product descriptions and introducing larger pack sizes.
Each of these changes helped to strengthen the product range, to better meet the needs
of the market.
Price
· cost based pricing this can either simply cover costs or include an element of profit. It focuses
on the product and does not take account of consumers
· penetration price an initial low price to ensure that there is a high volume of purchases and
market share is quickly won. This strategy encourages consumers to develop a habit of buying
· price skimming an initial high price for a unique product encouraging those who want to be
'first to buy' to pay a premium price. This strategy helps a business to gain maximum revenue
before a competitor” product reaches the market.
On re-launch the price for NIVEA VISAGE Young was slightly higher than
previously. This reflected its new formulations, packaging and extended product
range. However, the company also had to take into account that the target market was
both teenage girls and mums buying the product for their daughters. This meant that
the price had to offer value for money or it would be out of reach of its target market.
As NIVEA VISAGE Young is one of the leading skin care ranges meeting the
beautifying needs of this market segment, it is effectively the price leader. This means
14. that it sets the price level that competitors will follow or undercut. NIVEA needs to
regularly review prices should a competitor enter the market at the 'market growth'
point of the product life cycle to ensure that its pricing remains competitive.
The pricing strategy for NIVEA is not the same as that of the retailers. It sells
products to retailers at one price. However, retailers have the freedom to use other
strategies for salespromotion. These take account of the competitive nature of the high
street. They may use:
· loss leader: the retailer sells for less than it cost to attract large volume of sales, for example by
supermarkets
· discounting alongside other special offers, such as 'Buy one, get one free' (BOGOF) or 'two for
one'
Distribution/Place
.
NIVEA VISAGE Young aims to use as many relevant distribution channels as
possible to ensure the widest reach of its products to its target market. The main
channels for the product are retail outlets where consumers expect to find skin care
ranges. Around 65% of NIVEA VISAGE Young sales are through large high street
shops such as Boots and Superdrug. Superdrug is particularly important for the
'young-end' market. The other 35% of sales mainly comes from large grocery chains
that stock beauty products, such as ASDA, Tesco and Sainsbury”s.
Market research shows that around 20% of this younger target market buys products
for themselves in the high street stores when shopping with friends.
Research also shows that the majority of purchasers are actually made by mums,
buying for teenagers. Mums are more likely to buy the product from supermarkets
whilst doing their grocery shopping.
NIVEA distributes through a range of outlets that are cost effective but that also reach
the highest number of consumers. Its distribution strategies also consider the
environmental impact of transport.
· It uses a central distribution point in the UK. Products arrive from European production plants
using contract vehicles for efficiency for onward delivery to retail stores.
· Beiersdorf does not sell direct to smaller retailers as the volume of products sold would not be cost
effective to deliver but it uses wholesalers for these smaller accounts.
· It does not sell directly through its website as the costs of producing small orders would be too
high. However, the retailers, like Tesco, feature and sell the NIVEA products in their online stores.
· Promotion
· Promotion is how the business tells customers that products are available and persuades them to
buy. Promotion is either above-the-line or below-the-line. Above-the-line promotion is directly
paid for, for example TV or newspaper advertising. Below-the-line is where the business uses
other promotional methods to get the product message across
Events or trade fairs help to launch a product to a wide audience. Events may be business to
consumer (B2C) whereas trade fairs are business to business (B2B).
15. · Direct mail can reach a large number of people but is not easy to target specific consumers cost-effectively.
· Public relations (PR) includes the different ways a business can communicate with its
stakeholders, through, for example, newspaper press releases. Other PR activities include
sponsorship of high profile events like Formula 1 or the World Cup, as well as donations to or
participation in charity events.
· Branding a strong and consistent brand identity differentiates the product and helps consumers to
understand and trust the product. This aims to keep consumers buying the product long-term.
· Sales promotions, for example competitions or sampling, encourage consumers to buy products in
the short-term.
NIVEA chooses promotional strategies that reflect the lifestyle of its audience and the
range of media available. NIVEA realises that a 'one way' message, using TV or the
press, is not as effective as talking directly to its target group of consumers. Therefore
NIVEA does not plan to use any above-the-line promotion for NIVEA VISAGE
Young.
Consumer-led promotion
The promotion of NIVEA VISAGE Young is consumer-led. Using various below-the-line
routes, NIVEA identifies ways of talking to teenagers (and their mums) directly.
· A key part of the strategy is the use of product samples. These allow customers to touch, feel,
smell and try the products. Over a million samples of NIVEA VISAGE Young products will be
given away during 2008. These samples will be available through the website, samples in stores or
in 'goody bags' given out at VISAGE roadshows up and down the country.
·
· NIVEA VISAGE Young launched an interactive online magazine called FYI (Fun, Young &
Independent) to raise awareness of the brand. The concept behind the magazine is to give teenage
girls the confidence to become young women and to enjoy their new-found independence.
Communication channels are original and engaging to enable teenagers to identify with NIVEA
VISAGE Young. The magazine focuses on 'first time' experiences relating to NIVEA VISAGE
Young being their first skincare routine. It is promoted using the Hit40UK chart show and the
TMF digital TV channel.
· In connection with FYI, NIVEA VISAGE Young has recognised the power of social network sites
for this young audience and also has pages on MySpace, Facebook and Bebo. The company is
using the power of new media as part of the mix to grow awareness amongst the target audience