Skin Deep Loyalty

Presented by:-Ankit MohanAnuj NijhonVeeraj Vashishtha

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.

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.

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.

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.

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.

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.

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

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

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 level, e.g., Domino’s Pizza

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

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.

THANK YOU!