tarun

A MINOR PROJECT REPORT

ON

Promotional tools used in FMCG companies

Submitted in partial fulfillment of requirement of Bachelor of Business Administration (B.B.A) General

BBA IIIrd Semester (M)-(B)

Batch 2010-2013

Submitted to: Ms. Sonali Submitted by: Tarun Gianchandani

Designation: Assistant Professor Enrollment no.: 12214101710

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL. KALKAJI

ACKNOWLEDGEMENTS

It gives me pleasure to present this project report, which is an outcome of the

study “Promotional tools in FMCG companies”.

Completing a task is a never a one-man effort. It is often the result of valuable

contribution of a number of individuals in a direct or indirect manner that helps

on shaping and achieving an objective. I am grateful to my faculty guide

Mrs. Sonali for her regular guidance without which my project report

would not have been completed.

INDEX

No Content Page no

1 Acknowledgement 3

2 Executive Summary 4

3 Certificate of completion 6

4 Concept of stress 7

4.1 Introduction to stress 8

4.2 Stress in Biological terms 8

4.3 What is stress 9

4.4 Causes of stress 12

4.5 Effects of stress 15

4.6 Coping with stress at workplace 15

4.7 Stress Management 18

4.8 Workplace stress 21

4.9 Reduce your stress 29

5 Objective 36

6 Research Methodology 35

6.1 Research objective 36

6.2 Sampling 38

6.3 Research instrument 41

7 Data analysis and interpretation 49

7.1 Employees opinion about how to reduce

stress.

62

7.2 Research flowchart 64

7.3 Time consideration 65

8 Limitation of the survey 66

9 Advantages of Written Questionnaires 69

10 Disadvantages of Written Questionnaires 70

11 Findings 72

12 Bibliography 76

13 Appendix 78

EXECUTIVE SUMMARY

My seminar and progress report title is

“Promotional tools used in FMCG companies”.

In todays intensely competitive, rapidly changing and highly complex

environment characterize by diminishing customer loyalty, the need to be

market –focused and customer centric is more critical than any other time in

past. It is highly imperative for every organization to retain and use valuable

information about their customer to enhance their business strategies

and product and service offerings. Today, the key focus area of much

organization is identification of a link between customer satisfaction and

performance. This report will be totally focusing on the consumer preferences

towards different sales Promotion techniques means which sales promotion

technique is mostly preferred by the Customer.

As the sales promotion techniques are used for the marketing of the product

so the research will be done in the area of marketing. These techniques are

used in the marketing of product in the FMCG sector.

Products which have a quick turnover, and relatively low cost are known as

Fast Moving Consumer Goods (FMCG). FMCG products are those that

get replaced within a year. Examples of FMCG generally include a wide

range of frequently purchased consumer products such as toiletries, soap,

cosmetics, tooth cleaning products, shaving products and detergents, as well

as other non-durables such as glassware, bulbs, batteries, paper

products, and plastic goods. FMCG may also include pharmaceuticals,

consumer electronics, packaged food products, soft drinks, tissue paper,

and “ promotional tools in FMCG companies”, chocolate bars. Through

we will be able to know how sales promotion helps to shape the buying

patterns, attract new customers, or increase sales.

CERTIFICATE OF FACULTY GUIDE

This is to certify that Mr.Tarun Gianchandani student of JAGANNATH

INTERNATIONAL MANAGEMENT SCHOOL, KALKAJI of BBA of Third semester

has completed this Project and prepared this report on Promotional tools used in

FMCG companies under my guidance. The matter embodied in this project work

has not been submitted earlier for the award of any degree or diploma to the best of

my knowledge and belief.

Ms. Sonali

Assistant Professor

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND

In today s intensely competitive, rapidly changing and highly complex

environment characterize by diminishing customer loyalty, the need to be

market –focused and customer centric is more critical than any other time in

past. As the sales promotion techniques are used for the marketing of the

product so the research will be done in the area of marketing.

Products which have a quick turnover, and relatively low cost are

known as Fast Moving Consumer Goods (FMCG).Fast Moving Consumer

Goods (FMCG) goods are popularly named as consumer packaged

goods. Items in this category include all consumables (other than

groceries/pulses) people buy at regular intervals. The most common in the

list are toilet soaps, detergents, shampoos, toothpaste. A major portion of

the monthly budget of each household is reserved for FMCG products.

FMCG companies maintain intense distribution network.

Companies spend a large portion of their budget on maintaining

distribution networks. Newentrants who wish to bring their products in the

national level need to invest huge sums of money on promoting brands.

Some of the prime activities of FMCG industry are selling, marketing,

financing, purchasing, etc. The industry also engaged in operations, supply

chain, production and general management.

1.2 OBJECTIVE

To study the sales promotional activities which are used in FMCG sector.

1.3 SCOPE OF WORK

The Scope includes:

To study the various sales promotional activities used in FMCG sector.

To study about the sales promotional strategies.

To study about how to create sales promotion.

How to use sales promotion.

1.4 RESEARCH METHODOLOGY

Data Collection Method:

Secondary Data Sources

Literature Review

Internet

Newspaper:

Internet provides a rich source of information regarding various

companies of FMCG sector.

Newspaper plays a vital role in disseminating the information to millions

of people. In Newspapers, one can see the various sales promotional

activities which is used by the FMCG companies.

1.5 ANALYSIS

I did SWOT analysis for finding the strength, weakness, opportunities and

threats.

The SWOT-model was chosen because it gives an understanding for the

internal strength and weaknesses of the company and its competitors. The

SWOT-model also shows External factors from the market. Analysis is also

done in terms of case studies.

CHAPTER 2

LITERATURE REVIEW

2.1 FMCG Sector

Fast Moving Consumer Goods (FMCG) goods are popularly named

Consumer packed goods.

Items in this categor y include all consumables (other than groceries/pulses)

people buy at regular intervals. The most common in the list are toilet soaps,

detergents, shampoos, toothpaste,shaving products, shoe polish, packaged

foodstuff, and household accessories and extends to certain electronic

goods. These items are meant for daily of frequent consumption and have

a high return. A major portion of the monthly budget of each household is

reserved for FMCG products. The volume of money circulated in the

economy against FMCG products is very high, as the number of products the

consumer use is very high. Competition in the FMCG sector is very high

resulting in high pressure on margins.

FMCG companies maintain intense distribution network. Companies spend a

large portion of their budget on maintaining distribution networks. New

entrants who wish to bring their products in the national level need to invest

huge sums of money on promoting brands. Manufacturing can be outsourced.

A recent phenomenon in the sector was entry of multinationals and cheaper

imports. Also the market is more pressurized with presence of local players in

rural areas and state brands.

2.2 What are Fast Moving Consumer Goods (FMCG)?

Products which have a quick turnover, and relatively low cost are

known as Fast Moving Consumer Goods (FMCG). FMCG products are

those that get replaced within a year. Examples of FMCG generally include

a wide range of frequently purchased consumer products such as

toiletries, soap, cosmetics, tooth cleaning products, shaving products and

deter gents, as well as other non-durables such as glassware, bulbs,

batteries, paper products, and plastic goods. FMCG may also include

pharmaceuticals, consumer electronics, packaged food products, soft

drinks, tissue paper, and chocolate bars.

A subset of FMCGs is Fast Moving Consumer Electronics which include

innovative electronic products such as mobile phones, MP3 players, digital

cameras, GPS Systems and Laptops. These are replaced more frequently

than other electronic products. White goods in FMCG refer to household

electronic items such as Refrigerators, T.Vs, Music Systems, etc.

FMCG industry, alternatively called as CPG (Consumer packaged goods)

industry primarily deals with the production, distribution and marketing of

packaged goods. The Fast Moving Consumer Goods (FMCG) are those

consumables which are normally consumed by the consumers at a regular

interval. Some of the prime activities of FMCG industry are selling,

marketing, financing, purchasing, etc. The industry also engaged in

operations, supply chain, production and general management.

2.3 FMCG industry economy

FMCG industry provides a wide range of consumables and accordingly the

amount of money circulated against FMCG products is also very high.

The competition among FMCG manufacturers is also growing and as a

result of this, investment in FMCG industry is also increasing, specifically

in India, where FMCG industry is regarded as the fourth largest sector.

Common FMCG products

Some common FMCG product categories include food and dairy

products, glassware, paper products, pharmaceuticals, consumer

electronics, packaged food products, plastic goods, printing and stationery,

household products, photography, drinks etc. and some of the examples of

FMCG products are coffee, tea, dry cells, greeting cards, gifts, deter

gents, tobacco and cigarettes, watches, soaps etc.

Market potentiality of FMCG industry

Some of the merits of FMCG industry, which made this industry as a

potential one are low operational cost, strong distribution networks,

presence of renowned FMCG companies.

Population growth is another factor which is responsible behind the success

of this industry.

2.4 THE TOP 10 COMPANIES IN FMCG SECTOR

S.No. Companies

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)

3. Nestlé India

4. GCMMF (AMUL)

5. Dabur India

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries

9. Procter & Gamble Hygiene and Health Care

10. Marico Industries

Outlook

There is a huge growth potential for all the FMCG companies as the per

capita consumption of almost all products in the country is amongst the

lowest in the world. Again the demand or prospect could be increased

further if these companies can change the consumer's mindset and offer

new generation products. Earlier, Indian consumers were using non-

branded apparel, but today, clothes of different brands are available and the

same consumers are willing to pay more for branded quality clothes. It's the

quality, promotion and innovation of products, which can drive many sector.

The performance of the industry was inconsistent in terms of sales and growth

for over 4 years. The investors in the sector were not gainers at par with other

booming sectors. After two years of sinking performance of FMCG sector, the

year 2008 has witnessed the FMCGs demand growing. Strong growth was

seen across various segments in FY09. With the rise in disposable income

and the economy in good health, the urban consumers continued with their

shopping spree.

There are a variety of sales promotional strategies that a business can use to

increase their sales, however it is important that we first understand what a

sales promotion strategy actually is and why it is so important.

A sales promotion is a tool used to get customers to buy a product or

try a service. Sales promotions can come in the form of coupons, rebates,

sweepstakes, contests, discounted pricing, point-of-purchase displays, trade

shows, demonstrations, premiums and sampling. Typically, before a sales

promotion is put into action, a company evaluates its market. If a sales

promotion is warranted, the company comes up with a clear, measurable

objective they'd like to accomplish through the promotion.

Goal

Sales promotion goals vary depending on the product or service being

promoted. Some common goals are to increase sales or awareness, remind

customers about a product or service, introduce a new use for a product or

service and change customer's attitude/opinion. Using a combination of goals

is useful depending on the research a company gathers initially regarding

their market. The most important thing is to select a goal that is

measurable; otherwise, it's hard to gauge the effectiveness of a

promotional campaign.

Inform

A sales promotion constructed to inform customers about a new

product might include an advertisement in a local paper explaining the

product and inviting customers to visit a Web site for a coupon offer. An

activity like this can be measured by tracking the number of people who

receive the paper, the number of people who visit the Web site, the

number of people who download the coupon and the number of people who

actually use the coupon.

Remind

Reminding customers about a product or service is just as important as

an initial product introduction. Something as simple as setting up an in-

store display with coupons or having customers complete a survey to

indicate how often they use the product keeps brands fresh in consumers'

minds. Information gathered from the survey can expose how often customers

use a product, how familiar they are with a product and if they plan to use it

more in the future. Couple this with a discount coupon and you can even track

the number of people who make a purchase after completing the survey. A

follow-up survey can assess things like customer satisfaction and likelihood

for a repeat purchase.

Sales

Besides just handing out coupons, another great sales promotion technique is

price discounting. Whether its 50 percent off, buy-one-get-one-free or taking

10 percent off, reducing cost is a sure way to motivate customers to buy. To

track the effectiveness of this type of promotion, sales can be tracked based

on the number of units sold and the total sales. You can even track

how customers in certain areas buy compared to others.

Warnings

Sales promotions are a great way to inform and remind customers

about your products. Ultimately, the main objective of these activities is to

increase revenue. Weigh the cost of your promotional sales campaign against

the total revenue you expect to receive. Consider that many companies are

spending up to 60 percent of advertising budgets on sales promotions. Be

sure that your promotional campaign is both cost-effective and profitable.

Promotional Strategies of different FMCG brands in India

Sales Promotion

A sales promotion strategy is an activity that is designed to help boost the

sales of a product or service. This can be done through an advertising

campaign, public relation activities, a free sampling campaign, a gift

campaign, a trading stamps campaign, through demonstrations and

exhibitions, through prize giving competitions, through temporary price

cuts, and through door-to-door sales, telemarketing, personal sales

letters, and emails. The importance of a sales promotion strategy cannot be

underestimated. This is because a sales promotion strategy is important to a

business boosting its sales.

While developing a sales promotion strategy for the product it is important

to keep the following points in mind- Consumer attitudes and buying

patterns, Brand strategy, Competitive strategy, Advertising strategy, and

other external factors that can influence your products, availability and

pricing.

Sales Promotion strategies

There are three types of sales promotion strategies:

1:-A push strategy

2:-A pull strategy or

3:-A combination of the two

A 'push' sales promotion strategy involves 'pushing' distributors and retailers

to sell your products and services to the consumer by offering various kinds of

promotions and personal selling efforts. The basic objective of this strategy is

to persuade retailers, wholesalers and distributors to carry your brand, give it

shelf space, promote it by advertising, and ultimately 'push' it forward to the

consumer. Typical push sales promotion strategies include; buy-back

guarantees, free trials, contests, discounts, and specialty advertising items.


For Example: Ponds Cold Creams

Pond’s offer different cash discounts to the retailers for different quantities.

2% discount on 10000 Purchase

3% discount on 15000

4% discount on 25000

Or Ponds offer

A PVC jar Free on Purchase of 100 (100gm) Cold Cream.

A 'pull' sales promotion strategy focuses more on the consumer instead of the

reseller or distributor. This strategy involves getting the consumer to 'pull' or

purchase the product/services directly from the company itself. This strategy

targets its marketing efforts directly on the consumers with the hope that it will

stimulate interest and demand for the product. This pull strategy is often used

when distributors are reluctant to carry or distribute a product.

For Example:

Ponds offer low introductory prices to the customers like in case of their new

product AGE MIRACLE, They give some complementary gifts.

A 'combination' sales promotion strategy is just that; it is a combination of a

push and a pull strategy. It focuses both on the distributor as well as the

consumers, targeting both parties directly. It offers consumer incentives side

by side with dealer discounts.


Advertisement

Advertising is the means of informing as well as influencing the general public

to buy products or services through visual or oral messages. A product or

service is advertised to create awareness in the minds of potential buyers.

Some of the commonly used media for advertising are T.V., radio, websites,

newspapers, magazines, bill-boards, hoardings etc. As a result of economic

liberalization and the changing social trends advertising industry has shown

rapid growth in the last decade. Advertising is one of the aspects of mass

communication. Advertising is actually brand-building through effective

communication and is essentially a service industry. It helps to create

demand, promote marketing system and boost economic growth.Thus

advertising forms the basis of marketing.

Major methods for advertising

E-mail messages:

These can be wonderful means to getting the word out about the business.

In this we design a e-mail software to include a "signature line" at the end of

each of our e-mail messages. Many e-mail software packages will

automatically attach this signature line to our e-mail, if we prefer.

Magazines:

Magazines ads can get quite expensive. Find out if there's a magazine that

focuses on your particular product. If there is one, then the magazine can be

very useful because it already focuses on your market and potential

customers.

Newspapers:

Almost everyone reads the local, major newspaper(s). You can get your

business in the newspaper by placing ads, writing a letter to the editor or

working with a reporter to get a story written about your business.

Radio announcements:

A major advantage of radio ads is they are usually cheaper than television

ads, and many people still listen to the radio, or example, when in their cars.

Ads are usually sold on a package basis that considers the number of ads,

the length of ads and when they are put on the air. . A major consideration

with radio ads is to get them announced at the times that your potential

customers are listening to the radio.

Television ads:

Many people don't even consider television ads because of the

impression that the ads are very expensive. They are more expensive than

most of major forms of advertising. However, with the increasing number of

television networks and stations, businesses might find good deals for

placing commercials or other forms of advertisements. Television ads

usually are priced with similar considerations to radio ads,that is, the number

of ads, the length of ads and when they are put on the air.

Web Pages:

You probably would not have seen this means of advertising on a list of

advertising methods if you had read a list even two years ago. Now,

advertising and promotions on the World Wide Web are almost commonplace.

Businesses are developing Web pages sometimes just to appear up-to-date.

Special events:

These tend to attract attention, and can include, e.g., an open house,granting

a special award, announcing a major program or service or campaign, etc.

Promotional activities through Media

Articles that you write:

Is there something in your product about you having a strong

impression? Consider writing an article for the local newspaper or a

magazine. In your article, use the opportunity to describe what you're

doing to address the issue through use of your product. For example we

do get good examples of product based articles in tribune, where

sometimes products also compared.

Press kits:

This kit is handy when working with the media or training employees about

working with the media. The kit usually includes information about your

business, pictures, information about your products, commentary from happy

customers, etc.

Rural Promotion and Advertising

In country like India, where the 70% of the people live in rural area, the

rural market holds a lot of marketing potential. There is a wide spread

difference in the standard of living between urban and rural India. In order to

launch products and develop advertising for rural market there is a need to

understand both the rural context and also the consumer very well. Promotion

of brands in rural markets requires the special measures. Due to the social

and backward condition the personal selling efforts have a challenging role to

play in this regard. The word of mouth is an important message carrier in

rural areas. Infact the opinion leaders are the most influencing part of

promotion strategy of rural promotion efforts. To communicate effectively with

rural audiences, it is important to understand the aspirations, fears and

hopes of rural customers, in relation to each product category, before

developing a communication package to deliver the product message. Hence,

there is a strong need to build reassurance and trust about product quality,

service support and company credentials in the minds of rural consumers.

This is best done through the face- to-face 'below the line' touch, feel and talk

mode at haats, melas and mandis. Language and regional behaviour

variations should be considered while developing rural communications

strategy. Although the reach of television in rural India is high, frequent power-

cuts restrict viewing time considerably. With the licensing of FM

channels to cover all district headquarters, the power of radio to deliver a

localized message in a local language will soon be available to advertisers

as a cost-effective way to reach rural masses. Rural India has a very

high ownership of transistor radios and as these run on batteries, radio can

once again be expected to become a popular medium for reaching rural

masses.One of the most popular and widely accepted Marketing Myth is that

the rural consumers will only buy really cheap mass market brands. But the

stark reality is that though brands like Nirma lead, but penetration of premium

products has also been observed even to the lowest SEC (socio-Economic

Classification). The percentages may be very small, but given the large

universe, the actual figures may be significant. Thus when we are aware of

the fact that brands like Nirma, Tiger biscuit, Parchute oil rule the rural

market, it would be interesting to study and analyse their basic marketing

inputs.

For Example

A) Tiger Biscuits:

Britannia has entered in to the rural market by participating in rural melas and

displaying its down market brand Britannia Tiger Biscuits. These rural melas

and weekly haats have become more popular medium of rural advertising by

the media planners. Apart from stockists and sub-stockists, Britannia has

used traditional haats and melas to promote the Tiger brand. It has made the

ongoing Kumbh Mela a major promotion and sales outlet. Whenever they

come to know of a major mela or haat, they ensure that their brand is stocked

in large quantities. There are hoarding, which are put up by the company in

the rural areas. The hoardings are mostly put up with complete information

regarding the product. The information is given in the local language in order

to let people know about the product. The hoardings also have the mascot

tiger which emphasises a strong healthy individual. T.V. The various ad

campaigns throughout the country are done by preparing a single advt but the

language in which it features is according to the regional language of that

state. The ads include famous personalities like Saurav Ganguly. The ads

mainly focus on the children and emphasise a strong diet for a healthy mind

and body. School children in rural areas are often given small packs at a

confessional rate and at times they are distributed as free samples

B) Parachute Oil

With the objective of creating awareness for Parachute Coconut Oil

pouches in towns with less than 20,000 population in Tamil Nadu, and in

order to convert loose oil buyers into Parachute pouch customers, Marico

Industries launched a van campaign. The communication Strategy focussed

on getting women out of their homes to participate in the van campaign,

which was aimed exclusively for them and for the first time conducted by

women. Result - A study by Marico showed a 25per cent conversion from

loose coconut oil usage to Parachute Pouch Pack, post van campaign and a

substantial increase in sales from the campaign areas.

Buy More Save More

Companies also adopt "buy more to save more" concept to boost sales

during the slowdown. While price correction is clearly a focus area, fast

moving consumer goods (FMCG) companies like ITC, Godrej Consumer

Products Ltd (GCPL), Emami and Marico are also building on “tactical”

promotions, bundled offers and “buy more to save more” concepts to beat the

current recession.GCPL’s promotional offers, for instance, include one free

cake of soap on purchase of three, and discounts on purchase of linked

packs. According to officials at GCPL discounts and promotional offers are

temporary means to achieve strategic ends, which could include trial and

competitive reaction. Reasons for promotional offers include rewarding

loyal customers, passing on cost savings to consumers and inducing trial.A

few of Emami’s schemes include Emami Pure Skin worth Rs 22 free with

Boroplus Advanced Moisturising Lotion worth Rs 98; five pieces of Sardija

Cough drops worth Rs 5 free with 100 ml of Sardija Cough Syrup worth Rs

50, among others.

In many ways, discount is a starting point as it helps create buzz and

excitement and ensures higher sales. Consumers might curtail consumption

of high-end products but not mass’ products. During trying times, ‘save more

when you buy more’ strategy always work.

ITC is offering Vivel Di Wills shampoo (200 ml) free with its 75 gm bathing

soap for Rs 89. ITC brands are new hence marketing efforts are geared

towards enhancing consumer engagement and trial. The consumer

response to brands, Fiama Di Wills, Vivel and Superia, has so far been

excellent says official at ITC.


HLL (Hindustan Lever Limited) now HUL (Hindustan Unilever Limited)

Hindustan Lever Limited (HLL) is India's largest fast moving consumer goods

company.It is a leading player in home and personal care products,

foods and beverages, and speciality chemicals.The product portfolio with

its wide range of products sets HLL apart! It has achieved market

leadership in soaps and detergents (Surf) as well as hair and skin care

products (Sun Silk, Dove,Hamam). It is the second largest manufacturer

of dental care products (Close-up, Pepsodent). HLL is also market leader in

tea (Taj), processed coffee (Bru), ice cream (Kwality-Walls), tomato-

based products (Kissan), jams and squashes (Kissan), and branded staples

(Kissan Annapurna). With a plethora of brands, Communication becomes

imperative.Every company has to communicate the presence of its products

to capture a large market share. How does a company do that? There

are many tools that a marketer can use:advertising, hoardings, radio,

television and internet ads! What’s missing is the freebie! Is sales promotion

only made up of ‘atta free with soap’?

1. Consider this: When Dove was launched in the market, people had a

certain reservation against the product. Why?

There were two reasons:

a. Price factor. Most housewives found Dove to be pretty steep and thus

consumption was restrained.

b. Secondly, the rumours of one of its ingredients being animal fat.

HLL began a sales promotion campaign: Get Dove soap free with a kilo of

Surf Excel.With this promotion tactic, HLL got the opportunity of converting

“non-users” of Dove to users. At the same time changing attitudes of other

detergent users by converting them to Surf users.

2. On the other hand, HLL sought to increase usage of Close-Up

amongst the target audience by introducing the travel tube, initially giving it

free with every 200gm pack of toothpaste bought.

3. When attacked by Cavincare of Fairever fame, HLL adopted a defensive

strategy by giving awayone more Fair and Lovely free with every purchase

of it(BOGOF). This is one of the many ways by which a marketer can

piggyback on the brand’s standing in the market.

Repositioning and Repromoting Organics

When Organics was first launched on the platform of “root nourishing “

shampoo, consumers were sceptical towards the positioning. No one

wanted to spend thirty six percent extra when compared to Pantene.

Consumers were happy using coconut oil to strengthen the roots. What

did Levers do to push the product? 'Buy one get one free'(BOGOF) on

every small pack of Organics. The surprising aspect is that this

promotion failed to work for Levers.The next step that HLL took was of

repositioning Organics. They found out that the common problem in

India was hair breakage. Glucosil was added to the product for healthy

hair and the product was now revamped on the grounds of beautiful and

healthy hair. Where promotion was concerned, HLL used an entirely new

outlet - bookstores! Contests were conducted there and the winners were

given Organics hampers. This exercise helped a lot in brand recall thereby

placing Organics on the map of the consumers’ mind.That’s the power of

sales promotions in building a brand!

GCPL (Godrej Consumer private Ltd)

With the new strategy of tapping the middle and lower ends of the

market, Godrej expects the Godrej brand name to work for him. In the

low income housing market, known for fly-by-night builders, the Godrej

name will be leveraged more. With all this is mind, Godrej launched the

group_s first ever ad campaign for the Godrej brand rather than for its

individual brands such as Cinthol soap or Godrej Hair Dye.Aimed at

packaging the brand for younger consumers, the campaign showcased

the groups products for the space programme, and included sponsorship

of the Indian Premier League and a show created to promote the Godrej

products range, called Godrej Khelo Jeeto Jiyo. Godrej says the group

will continue to build on branding. Group companies have used the

campaign to target their individual advertising better. For instance,

Godrej Consumer now buys ads more on Doordarshan because the

brand campaign takes care of cable television. It means Godrej Consumer

has an advertising budget lower than most competitors.

Toiletries Soaps and Shampoos

The toilet soaps market is estimated at 530,000 turnover per annuum

including small imports. The market is littered over with several, leading

national and global brands and a large number of small brands, which

have limited markets. The popular and premium brands include Lifebuoy,

Lux, Cinthol, Liril, Rexona, and Nirma.

Soaps form the largest pie of the FMCG Market with bathing & toilet soaps

accounting for around 30% of the soap market, by value. Currently, the soap

industry is divided into three segments namely Premium, Popular and

Economy/ Sub popular To fight competition, major players Hindustan

Unilever Ltd (HUL), Godrej Consumer Products Ltd (GCPL) and Wipro

Consumer Care & Lighting are now drawing up fresh game plans. And the

accent is clearly on innovation to gain mind share as well as market share in

this overcrowded category. Remember the ‘Is it love? No it’s Dove’ ads?

In the 1990s, when everything had to be low priced, consumer goods

major Hindustan Unilever launched a brand of soap that was considered

expensive, frightfully expensive , for the times we lived in. For about Rs 30

for a bar, it was nearly twice as expensive as any toilet soap brand that

was then sold in India. This was a time when hanging out for coffee was

at the neighbourhood Udupi restaurant that charged Rs 6 for a serving and

not the Barista where a mug of coffee cost Rs 50. To get consumers living

with that mindset to graduate to a brand like Dove was a big leap.

Certainly the well-traveled Indian consumer who had seen and touched the

brand abroad were the first set that moved towards the brand for its

superior and “gentle on skin” properties. Others who sampled the brand

had mixed opinions. Occasionally you heard the sob story from a neighbour

on how a Dove bar got over in just four days, when the Rs 10 soap lasted

for a month, giving rise to rather unkind remarks that Dove was ¼

moisturiser and 3/4 love. This set of consumers used the bar for washing the

face while a less costly soap would be used for the rest of the body, a value-

for-money approach.

Promotional Strategies of different FMCG brands in India claim that Dove has

grown by 100% in shampoos and 23 by 42% in soaps. “Dove is the

largest premium brand in the Hindustan Unilever portfolio,” says Rajaram

Narayanan, vice president, hair care and Lakme, HUL. Now the Dove portfolio

delivers Rs 500 crore in sales.

Real Women Face Test

The faces that represent the Rs 500 crore premium brand are of ordinary

women. The faces that represent Hindustan Unilever’s (HUL) biggest

premium soap brand are not familiar. For, they represent 11 ordinary women

who won Dove’s Real Women Face Test – a campaign that received over

4,500 entries. Recently the fast moving consumer goods major put all of

them on billboards, newspapers and on television to endorse the Rs

500 crore brand in a high voltage advertisement campaign.

That’s Dove’s way of going off the beaten track in its communication

strategy. Unlike other soap advertisements, the premium brand did not

use the usual models or movie stars. Instead, it got real women who

use the product to give testimonials of their experience with the brand.

In May 2007, HUL launched Dove shampoo from Unilever’s portfolio.

For Dove’s hair wash variant too, HUL initiated huge sampling in malls by

setting up counters where consumers could get their hair washed and

then photographed. These pictures were showcased in the Dove Gallery. As

a result, testimonials were not just on TV, but also online through consumer-

generated content and in print. The same year, the company also launched

shampoo sachets priced at 50 paise each in an effort to increase penetration

and usage of the product in rural and poor households Until these launches

HUL’s presence in shampoos has largely been restricted to so-called mid-

priced shampoos with its Clinic and Sunsilk brands and their variants. The

changes seem to have worked for the company. According to research firm

AC Nielsen, HUL’s share in the hair care business went up by one

percentage point from 47% in the first quarter of 2007 to 48% in the

December quarter. In comparison, its nearest rival Procter and Gamble’s

(P&G) share fell from 25% to 23.3%. Dove is a classic case of consistency

especially in a country like India where people have come of age in terms of

affluence. The soap’s advertisements are very timely. Sales of the soap

have been growing at over 40 per cent annually and the recently

launched shampoo variant at 100 per cent. Dove is now almost a Rs 500

crore brand, with soaps accounting for around half of that figure. The rest

comes from hair care, a category launched two years ago.

When we talk about HUL the first name that comes to our mind is Lifebuoy. It

is the world’s largest selling soap and offers a stronger health benefit to the

entire family. Launched in the year 1895, Lifebuoy, for over a 100 years,

has been synonymous with health and value. The brick red soap, with its

perfume and popular Lif ebuoy jingle have carried the Lifebuoy message of

health across the length and breadth of the country, making it the

largest selling soap brand in the world.

Lifebuoy contributed 30 per cent to the Hindustan Lever detergent

business turnover and hadn't undergone a major restructuring and

repositioning in 107 years. However, the sales were declining as the

consumers were moving away from the carbolic based soaps to

beauty soaps - perceived to be superior; with better fragrance and

lather; aspirational image.

The agency devised a strategy to ensure that it advocated family health

rather than personal hygiene. There were large chunks of the users

who were in "unreachable areas" - rural markets. Through TV and print

campaigns, the agency team focused attention on the family health

themes, conducted consumer education exercise using "Germ tests"

through multimedia; and established the brand's credentials as an

authority in a credible manner. The agency also explored the communication

options during important days such as World Health Day.

For rural markets, it created the Lifebuoy Swashthya Chetana

project wherein 450 teams of health officers tapped 8000 villages in

11 states. Nearly 40 million people in rural areas were covered. The

Promotion in Melas

Innovative communication tools were used at the mela to communicate

the importance of health and hygiene. “The company 14 stalls at various

points in the mela grounds. Some hand-carts have also been deployed for

increasing access. The numbers of both was increased based on response.

``The activity aims to build awareness in the target audience about

hygiene and health through product demonstrations

". People in Mela were asked to put there hands below some special camera

where the 7 year could see the germs on their hands and were asked to wash

their hands with lifebuoy and then see the difference. These type of

promotional activities worked in these melas.

Swine flu campaign

Flu fighter - The flu, caused by the H1N1 virus, has caused several

deaths across the country and has spread panic in households. Schools have

been shut in cities across India, while hospitals are struggling to cope with

the rush of patients. Its largest victims are children who don’t have a strong

immune system. Brand consultants and experts feel this will give the brand

the much-needed boost. Hindustan Unilever’s latest salvo is its new

communication centred around swine flu. The “public interest

advertisement” opens with the image of a mother washing her child’s hand.

An informative voiceover follows about the importance of washing hands

before eating, after sneezing, shaking hands or touching shared surfaces

which can help prevent swine flu. A print campaign was also launched.

Hindustan Unilever, or HUL, India’s largest consumer goods company

by sales, is plugging Lifebuoy soaps and hand washes in newspaper

advertisements as products proven to protect from H1N1 type virus”. “Wash

away swine flu germs,” goes the tag line on advertisements running across

media platforms, including television and print.

Lifebuoy sales seem to have won a lift as consumers take precautions to

guard against the risk of swine flu, which claimed its first life in India in August

when a Pune teenager died after being infected. “The ads are all over

the media and it has definitely created an impact.

Hindustan Unilever, on its part, plays it down and maintains that it has always

kept the health proposition in mind. “The current advertising campaign is

an extension of our effort to use mass media to effectively communicate

to people at large to increase hygiene awareness to combat this health

threat,” says a company spokesperson.

Way back in 1985, Lifebuoy’s entry into the Indian market coincided with the

outbreak of the plague epidemic. That’s when Lifebuoy became a household

name in the country. “Lifebuoy hai jahan, tandroosti hai wahan”, (Where you

have lifebuoy, you have good health) ran the long-playing jingle. Some time in

2002, Hindustan Unilever came up with a health and hygiene programme

called the Lifebuoy Swasthya Chetna (Lifebuoy Health Awareness) in media-

dark villages to spread awareness about the importance of washing hands

with soap. Through this initiative, Hindustan Unilever has spread itself

across 53,000 villages reaching out to as many as 120 million Indians. The

insight here was that regular usage of soap helps reduce illnesses like

diarrhoea, respiratory infection, eye infection and so in children. This was

underscored by the fact that diarrhoea is a major cause of death in the world

today. It is estimated that diarrhoea claims the life of a child every 10

seconds and one-third of these deaths occur in India.A year back,

Lifebouy came out in aid of the victims of the Kosi floods in Bihar and

Aila cyclone in West Bengal. Therefore, the swine flu initiative was a

natural extension for HUL as a brand.

Lifebuoy took on the responsibility to raise awareness about swine flu and

how it can be prevented as a social cause campaign to reduce the risk of

infection.

Lifebuoy Swasthya Chetna Campaign

The Company has continuously designed innovative promotions to reach

the rural markets. Lifebuoy in its rural contact program called “Lifebuoy

Swasthya Chetna”, where it spread information on how washing hands can

keep diseases away, targeted a population of 5 crores in 15000 villages.

It also promotes general hygiene in rural areas that are difficult to reach

through usual marketing campaigns such as television, press or in-store

advertising and promotions.

It applied a 2 prong approach. HUL employed Health Development Officers

and Health Development Assistants who went to all the villages and

educated the community through lectures and community meetings.

They returned to the villages after 2 months, offered toys, badges and medals

to children who had made it a habit to wash hands regularly (read saved

“Lifebuoy” soap wrappers) and a certificate to the children who had won

these badges most often.

The campaign has three communication tasks:

• To establish the presence of germs, even on clean hands, through the use

of a 'glow germ demo kit' that has been developed by Unilever for use in

Lifebuoy Swasthya Chetna. The simple and powerful tool makes unseen

germs visible.

• To establish the consequences of these hidden germs, which when

ingested, can cause stomach infections and diarrhoea, or be transferred to

eyes causing painful eye infections, or infecting wounds.

• To establish how current practice is not enough to fight these germs by

using the glow germ demo kit to demonstrate that washing with water is not

enough, and that it is necessary to wash hands with soap for germ protection.

Tools used to communicate the central Swasthya Chetna message are

adapted according to the specific audience. Lifebuoy teams visit each village

several times, engaging all segments of the community and ensuring the

formation of local 'self-help communities' that can sustain the message.

School children, being initiators of change, make excellent ambassadors

of communication, provided they find it fun and engaging. The element

of Lifebuoy Swasthya Chetna that involves children focuses on fun, using

stories, games, songs and quizzes. Efforts are made to ensure that the

learning does not fade over time. Additionally, these visits also include a

meeting with the Panchayat (village elders).Covering 130 million people

in 30,000 villages since 2002, the Lifebuoy Swasthya Chetna programme

has made its mark as the single largest private hygiene education

project in the world. The Swasthya Chetna programme will be re-launched in

2009, and will cover even more villages in India as part of the Lifebuoy

brand's crusade.

Hindustan Campaign

Dettol celebrated its 75 years of existence in 2008. This highly popular

antiseptic brand has come a long way since 1933. After a plethora of

extensions and experiments, this brand is still ruling the Indian market as

the most preferred antiseptic lotion and also as a premium soap.

The brand celebrated its 75 years by reinforcing the germ killing

positioning and the tagline " Be 100% sure ". The brand is currently

running a campaign highlighting the efficiency and the multi-uses of the

product. In marketing theory , it is taught that one of the strategy for a brand

which has reach the maturity stage of PLC is to find new uses for the

product. The Dettol brand is currently in the process of discovering

those new uses for the product. When the consumer uses the product

for different purposes, the sales naturally increases.

The best way to find the new uses for the product is to ask the consumers.

Dettol did just that. It ran a series of promotions asking consumers to tell the

company , how they used Dettol.

The brand asked the consumers to contact them and tell the company on the

multiple uses of the product and thus gained lot of insights into the

various uses of the brand.

The brand later came out with a series of campaign highlighting the various

uses of this antiseptic. Dettol now taken the platform of a multi-use

antiseptic which can be used during bath, to clean wounds, to sterilize

clothes, floor etc. Although homemakers has been using Dettol for all

these, the company has now taken these uses as a part of the core product.

The brand is trying to break the image of Dettol as an antiseptic which is used

for cleaning wounds.

Along with this initiative, the brand also reinforced its commitment towards

hygiene. The brand has selected hygiene as the core brand value and theme

which it will fight for. Unveiling new campaigns and public awareness rallies,

FMCG majors such as Dabur,

Reckitt Benckiser and Hindustan Unilever Ltd (HUL) are trying their

best to

communicate what their respective brands can do to prevent the spread of the

virus. Apart

from Dabur’s campaign, HUL and Reckitt have been enhancing the

‘health-oriented’

equity of their flagship brands such as Dettol and Lifebuoy to target

consumers.

Meanwhile, soap and hand wash brands such as Lifebuoy and Dettol

have also been

doing their bit to create new communication about swine flu. For

instance, Reckitt’s

Dettol brand has decided to support the Global Hygiene Council to

conduct doctors’

conferences on swine flu prevention. So far over 1,000 doctors have

attended these

sessions. The plan is to reach out to doctors in all key cities in the

country to raise

awareness on prevention measures and readiness.

The company has used print, television and online mediums to educate

consumers about

hygiene and its importance in its brand campaigns. Recently, its Swine Flu

campaign

guided consumers about the precautions which are required to fight the

deadlyinfluenza.

Sethi also informs about an H1N1 Flu (Swine) digital campaign of Dettol,

which

30


positions itself as 'Dettol kills 99.9 % bacteria and Flu viruses' and educates

the

consumers about the disease.

The digital campaign seems to be an endeavour by Reckitt Benckiser to

leverage the

rising number of searches on Swine Flu, to awareness on how Dettol can help

people

maintain personal hygiene. As a result The market share of Dettol increased

from 6.4 per

cent in June 2008 to 8.1 per cent in June 2009, placing it ahead of Wipro's

beauty soap

Santoor as the country's third-largest soap brand by value.

Promotional offer

Dettol Fresh range has been introduced in Bar soaps and Liquid handwash.

The bar soaps

are priced at Rs. 18/- and Rs. 29/- for 70gm and 120gm respectively.

The liquid

handwash will be available in three sizes - 250ml pump at Rs. 55/-, 185ml

pouch at Rs.

30/- and 900ml refill pack at Rs. 135/- The pricing is at par with the existing

portfolio of

Dettol soaps and liquid handwash.

As part of an introductory offer, a discount of Rs. 2/- and Rs. 4/- is being

offered on

70gm and 120gm soap bars respectively. This offer was valid during

the month of

February and March 2009.

S

antoor, India's third-highest selling

soap brand, and South India's second

biggest soap brand has been built

assiduously with advertising that has

presented the Santoor Woman in a 'mistaken

identity' situation. The campaign, which is

in its 20th year, keeps getting refreshed

every two years. Women want their skin to

lie about their age. The image managers of Santoor, which has become the

largest selling

soap brand in South India, has made that the main selling point of

their promotion

campaign over the years. Previously in tune with the mood of the country

Santoor came

out with a film that shows the Santoor woman entering a voting booth, to cast

her vote,

31


only to be stopped for 'age proof'. Again a new interpretation of the

mistaken identity

theme.

Ageless skin campaign

Over the years pricing obviously played a crucial part. Santoor was originally

launched in

1985 as an ordinary soap with sandalwood and turmeric being its main

ingredients.

Though Moti and Mysore Sandal soap were the other brands which had

sandal as main

ingredient, they were available for a premium. Wipro tried to position

the soap in the

skincare segment at a popular pricing. However, when the company

realised that by

banking on ingredients may not bring good results for long, it decided to

reposition the

brand from being ingredient-oriented to benefit-oriented on a platform of

‘younger

looking skin’. The theme of ‘ageless skin’, captured first in a TV advertisement

20 years

back, has remained constant over the years. And the company intends to

keep it that way

as long as it’s bringing the right results.

“While the theme has remained constant, the Santoor woman has evolved. In

the first two

years, the Santoor woman was at a wedding ceremony; she was buying

bangles; she was

buying a book etc. After that she began going to aerobics classes, and then

after four-five

years we took her to do dress designing. Interestingly Santoor had

come out with a

cricket film in time for the World Cup.

As a result of the campaign women see themselves in every single Santoor

soap ad. That

may not be an exaggeration as women are surely buying the soap in large

numbers. In the

first quarter of the last fiscal, Santoor became the largest brand in its

category in South

India in value market share, though the company has just 7.5 per cent share

in the Indian

personal care soap market worth around Rs 8,000 crore.

In other markets, Santoor has gradually begun to garner market share. In

Maharashtra, it

is number three in terms of value though the brand is almost neck-

and-neck with

Lifebuoy in rural Maharashtra, with a market share of 22.7 per cent (Lifebuoy

is at 22.9

per cent).

32


W

hile FMCG (fast moving consumer

goods) products usually take off in the

urban centres, and then spread through the hub

format, Medimix was pitched in the villages

first. The only alternative to medimix was

Chandrika soap, which had adopted a direct

marketing approach. Officials at medimix used

to attend numerous village melas and talk to the people. Today, of the three

lakh tonnes

of soap sold, ayurvedic soap comprises 7 percent, of which medimix has 3

per cent.

Medimix is a medicated soap that is 100 per cent handmade is exempt from

tax and rural

consumers seem to be attracted to the medical qualities of the soap far more

than they are

to the same qualities in a cosmetic Today when a villager visits a city he asks

for

Medimix soap by name. No offers, no schemes, no inducements. As

Chandrika soap was

following the monopoly of direct distribution. Medimix decided to woo the

stockiest and

distributors and claims there are 25-year-old loyalties here. "From 1969 to

1990 growth

was slow 'But when S. Pradeep joined the company as managing director the

firm took

off in just four years."

A firm decisions were taken that Medimix would aggressively market to over

3,000 small

hotels all over India, even in small towns. Its a pleasantly surprised to find that

even

foreign tourists to places such as Pondicherry were impressed by the

medicated quality of

Medimix. Medimi decided not to compromise on the packaging or

appearance or the

perfume or colour of the soap to gain entry into five-star hotels. Hotels will

never buy at

the maximum retail price (MRP), so they supply at cost.

33


T

he great Indian brand wagon started nearly four decades

ago. Great brands sometimes outlast their ambassadors as

proven by Lux which celebrated its 75th anniversary in India.

Lux campaigns have wooed millions of people over the decades.

Popularly known as the beauty soap of film stars, Lux has been

an intimate partner of the brightest stars on the silver screen for decades. An

ode to their

beauty, an announcer of their stardom, advertising campaigns on Lux have

featured film

stars across the nation, promising their beauty and

complexion to ordinary women.

With top movie stars – from Madhubala to

Madhuri, from Babita to Karisma and Kareena

having endorsed the goodness of Lux over

generations, it was natural that the brand has built

equity as the best beauty soap in India.

From the beginning Lux, by using a leading film

star of the time, has fulfilled the consumers’

aspirations of using beauty soaps via the rationale

‘if it’s good enough for a film star, it’s good for

me. This later moved into a transformation role of

having a bath with Lux, which transports the user

into a fantasy world of icons, film stars and fairy lands.

The first ambassador, Leela Chitnis featured in a Lux advertisement which

flagged off

the Lux wagon. She gave way to a galaxy of stars which includes

Madhubala, Nargis,

Meena Kumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira

Banu, Hema

Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi, Aishwarya Rai

and Kareena

Kapoor. The last frontier for most actors aspiring to stardom is

becoming a Lux

ambassador. The brand has outlasted many soaps. From the beginning,

Lux became a

household name across the country

34


Change in communication strategy

However, the communication was slowly seen to be losing relevance, as

consumers were

beginning to question if the film star actually used the brand.

In addition to this, several competitive beauty soap brands had begun

advertising using

similar methods of communication. In this context, the global brand

team for Lux

developed a new communication strategy. This strategy – bring out the star in

you – for

the first time moved the brand away from the long-running film star route. The

film star

still features in the new communication but not as her gorgeous self but rather

as an alter

ego/projection of the protagonist (a regular girl), for a few seconds of the

entire ad.

Thus, for the first time the film star was used as a communication device and

not as the

main feature of

the ad. The

move away

from the film

star and her

fantasy world to

a regular Lux

user, with the

focus on the

protagonist’s

star quality, is a

change from the norms set by Lux advertising in the past. With the new

communication

strategy, the film star is used purely as a communication device to portray star

quality in

every Lux user. This can be significantly seen in the latest TV commercial of

Lux Crystal

Shine where Priyanka Chopra is portrayed as a normal woman.

This idea – bring out the star in you – puts the consumer at the heart

of the brands’

promise. This promise goes beyond the functional deliverables of soap,

beyond bathing

and the bathroom to the world outside. It’s a world where with Lux on

her side, an

ordinary woman can impact her world with her own star quality. This is

a successful

attempt to bring the brand closer to its users and to give it a more

youthful and

contemporary image.

35


Prominent Sales Promotion Schemes Used By LUX

Lux presented 30 gm gold each to the first three winners of the Lux Gold Star

offer from

Delhi. According to the promotional offer that Lux unveiled in October 2000, a

consumer

finding a 22-carat gold coin in his or her soap bar got an opportunity to win an

additional

30 gm gold. The first 10 callers every week got a 30 gm gold each.

The offer could be availed only on 100 gm and 150 gm packs of Lux soap.

Lux Star Bano, Aish Karo contest: All one needed to do was buy a special

promotional

pack of Lux soap. The pack comes with a special scratch card. The 50 lucky

winners and

their spouses were flown down to Mumbai to live a day like Aishwarya Rai

would. They

could also be given gift vouchers worth Rs 50,000 from Shoppers' Stop

along with an

exclusively designed Neeta Lulla sari and a beauty makeover by

Michelle Tung,

Aishwarya's preferred designer and stylist. The pièce de résistance was a

dinner date with

Aishwarya Rai herself.

Lux celebrated 75 years of stardom with the Har Star Lucky Star

activity.

All wrappers of Lux had a star printed inside them. If the consumer found

written inside

the star, any number from “1” to “5”, she would get an equivalent discount (in

rupees) on

her purchase from her shopkeeper. If the consumer found “75 years”

written inside the

star, she will get a year’s supply of Lux free.

LUX PR Activities

Press relations:

Lux has been maintaining constant

communicating with its customers

and potential customers, of the

various developments taking place

in the brand by using press

relations.

Events

:

Lux celebrated 75 years of

existence in a grand way by

unveiling Shahrukh Khan as their

36


latest brand ambassador. Kareena Kapoor, Juhi Chawla, Sridevi and Hema

Malini graced

the event and made it special. All the stars have endorsed Lux in the past.

The event was

held at the grand Intercontinental in Mumbai

Limited edition:

Coming up with limited edition of the brand is also a way of attracting attention

towards

the brand. It creates a buzz and a feeling of urgency to try out the product and

helps in

promotion of the brand. This strategy was also implemented by Lux by

bringing out

limited editions like Chocolate Seduction, Aromatic Glow, Festive Glow and

Haute Pink

O

ver the first three decades of its

existence, the brand took the platform

of protection from body odour. But the markets were gradually changing. In

1986, in an

attempt to modernise the image, 'New Cinthol' soap was launched with

a new-look

packaging, shape and advertising, using celebrities like Vinod Khanna and

Imran Khan.

The communication campaigns developed strong, confident and active

associations with

Cinthol- attributes that went on to become an essential part of the brand

imagery.

In 1989, in an attempt to capture a share of the lime soap market,

Cinthol Lime was

launched. The attempt to capture a segment of this developing market was a

resounding

success: it grabbed 8% market share in six months. In 1992, Cinthol

Cologne was

launched to extend the brand franchise into a modern and new fragrance.

cinthol-vinod-khanna

cinthol-imran-add

By 1993, Godrej realised that it had to re-jig the brands to keep pace with the

changing

environment. The three variants that had been launched post 1986 were

brought under the

Cinthol International umbrella – Cinthol International Spice, Cinthol

International Lime

and Cinthol International Cologne.

37


A complete positioning overhaul was undertaken between 1993 and 1995.

Shah Rukh

Khan became the brand's new icon. His panache matched the brand's

new platform:

revitalising and re-energising. With the launch of Cinthol Fresh in 1995, the

brand was

extended into the popular segment as the first popular segment lime

soap. It was a

runaway success. It was redefined as a family soap with the famous

'Tan taaza, man

taaza' campaign in 2000.

Currently, Godrej plans a complete makeover of its flagship soap brand

Cinthol and has

hired Bollywood actor Hrithik Roshan as a pitchman. The brand, which was

launched in

1952 as the first deodorant soap in the country, has been through several

changes since

then. It was initially positioned as a male-centric product but later it was

repositiioned as

family soap but now, the company plans to pitch it as a youth-centric brand,

along with

launching new products under the same brand name.

Promotion in rural market

Most fast moving consumer goods (FMCG) companies have a two-

pronged strategy to

tap rural markets. It comprises launching nano packs and scaling up rural

distribution.

Godrej Consumer Products Ltd (GCPL) is going a step further by

adding a regional

advertising component.

The company advertises on Doordarshan, local TV and radio channels,

the local press

and outdoor media. For its top-performing brands, it spends most of the cut-

out budget on

regional advertising only. "For Godrej No. 1 soap, 100 per cent spends

go in regional

advertising. For Cinthol, it is more than 50 per centThe strategy has borne

fruit. Godrej

No 1 is now the number one soaps player in the north. Its annual sales

exceed Rs 500

crore and it is the country_s third largest soap brand. Cinthol_s market

share has

increased from 2.5 per cent to 2.8, while Cinthol deodorant has grown by 50

per cent in

the second quarter. For Expert, the company is running a campaign

wherein it brands

local barber shops and salons under the _Expert_ brand. Under the

programme, its sales

team introduces its products to rural folks through barbers, engaging the latter

to co-brand

their shops or salons as Expert salons. The company has engaged 50,000

barber shops

and salons under this programme.

38


Price points are also important. Godrej has also been rolling out nano

packs priced

between Rs 5 and Rs 10. Besides Godrej No. 1 (Rs 5), Cinthol (Rs 6) and

Expert (Rs 10),

a couple of months earlier, it introduced Nupur (mehndi) in Rs 5 and Rs 10

packs.

Washing Powders

E

ver heard of a detergent that praises its foe? We have

one which says _Daag achhe hain_ very confidently.

For any other brand, it would have been difficult to

convince the customers about the product with such a

paradoxical statement, but for Surf Excel, which can easily

be called as one of the most powerful detergent brands of

India, it seemed a cake walk. What_s more, the brand not

only focuses on its generic space of a detergent but also on making a social

difference in

the lives of its consumers. Surf Excel_s social awareness campaigns

like _Do bucket

paani ab rozana hai bachana_ and the scholarship campaign for unfortunate

students too

endear the brand to the morally responsive Indian consumer. Right

from _Lalitaji_,

representative of the true-blue cost-conscious Indian woman, till the inspiring

storyboards

of today, Surf Excel has done it all and in style.

39


Innovation truly distinguishes leaders from wannabes, and as detergent

adverts go, Surf

Excel has proved to be the last word – both in terms of product offering and

advertising

communiqué.. The era of Lalita Ji ensured that Surf represented the woman

of that epoch,

which in turn managed to instill confidence among consumers. Surf

transformed itself

into Surf Excel in 1996 with its campaign, ‘Kadi Safai, Magar Pyaar

Se’, clearly

differentiating itself from the herd by offering a supplementary benefit of

care. While

competitors such as Rin, Ariel, Tide and Henko were positioning

themselves as

detergents that would aid in the removal of dirt by virtue of technological

expertise, Surf

Excel chose to walk on an entirely different path. And now, with its plucky

glorification

of dirt, it’s written the new clean-up mantra, ‘Daag Achche Hain.’ In

sync with this

credo, the latest commercial of Surf Excel

does not rely on thematic communication like

the previous TVCs.

The concept was that while kids get stuck on

one thing, stains get stuck in 10 different

places.” Surf owns the distinction of being the

first ever detergent brand in India to have

begun advertising on television. The brand

has optimally utilised the medium of TV to

bring across the intrinsic worth of ‘bucket

wash.’ From placid and peaceful to feisty and

quick-witted, Surf Excel today practises a

refreshing modus operandi to speak to its customer. The brand’s

advertising gained a

humongous amount of exposure by flagging off a host of in-store programmes

and road

shows that entrenched it in the good books of the consumer. Being an

overseas brand,

Surf has excelled in Indian markets for decades together – by no

means a small

achievement – and marketing gurus admire the brand for its sheer tenacity

.

40


Distinctions in promotion of Surf

•

Surf was the

first brand

of detergent that was

advertised on TV.

It is advertised on

more than

300 channels

across the globe .

•

Introduced the

concept of bucket wash

to housewives who up till now used to

washing clothes with laundry soap bars.

•

Brand to set up a one-stop shop - called

Care line

- for people seeking solutions to

their varied laundry problems.

•

Surf Excel underwent various changes in its Brand Communication; from

‘Lalitaji

'

to

'dhoondte reh jaaoge

' to

'jaise bhi daag ho, surf excel hai na

', and is today

communicated on the platform of

'Dhaag achcha hai

'.

•

HLL is now reworking the Surf Excel strategy by moving away from

positioning

the brand

on functional benefits, to building

an emotional connect.

•

Surf Excel is currently running two campaigns riding on the popularity of the

"Daag

Ache Hain" ( Dirt is good)

campaign.

•

The new campaign too strikes a chord with the consumers. Power of a "Big

Idea”.

•

The second campaign

takes a cue from the

World cup

. The ad features a group of

kids preparing for

World Cup 2015

.

•

The company

has re-packaged the product using brick packaging

which is a first

among detergents in the country.

Radio city campaign

Surf Excel, a leading detergent brand from Hindustan Unilever Limited,

has come

together with India’s leading Radio Network, Radio City 91.1 Fm to

celebrate

International Peace in Mumbai, where Children across the city got dirty for a

noble cause

and spread the message of peace in a unique & colorful way.

Children across Mumbai are invited to participate in this activity through

an on air

campaign on Radio City. Across schools, kids will leave colorful hand

impressions on

multiple canvases. Surf Excel will then showcase these canvasses on

hoardings and in

malls across the City, in a bold statement for World Peace as defined through

a Child’s

eyes.

41


W

hen we think of strong detergent in

general and low cost in particular,

Nirma is the first brand which comes to our

minds. Everyone remembers not just these

lines but also the tune!

Washing powder Nirma,

“

Washing powder Nirma;

Doodh si safedi Nirma se aaye,

rangeen kapda bhi khil-khil jaye;

Rekha, Jaya, Meena aur Sushma,

Sabki pasand Nirma

”

The kind of impact that Nirma’s simple “Dancing Girl” advertisement managed

to have

on prospective buyers was phenomenal. It perhaps was the most famous

audio-visual of

its times. And it remained etched in the minds of people for a very

long time.

Advertisements of Nirma focus on the “performance” and “cost effective”

features of the

washing powder which has made it popular in most Indian households, who

have been

using it for many years now. This product is targeted for middle class and

lower middle

class population of India. Washing Powders have undergone a number

of changes in

terms of composition, advertising etc ever since they were first

introduced. And

consumer preferences have also changed accordingly with people more

comfortable with

more sophisticated brands. Yet, Nirma with its distinct yellow color (later

which became

blue) does crop up somewhere in the mind space of consumers, even

nonusers.

The detergent brand that started out of Karsanbhai Patel's 100 square feet

workshop in

1969 continues to be popular in middle-class homes of the country.

Recently Nirma launched the 'underwater' commercial, which showed

dancers moving

with flowing fabric - a metaphor for clothes being washed in a bucket.

An important point in the ad was that it did not use the iconic Nirma jingle.

This was a

first since 1982, when the first Nirma ad was made. Now, Nirma wanted its

communication to get back to talking about the dirt tackling properties of the

detergent,

42


as well as use the legendary 'Washing powder Nirma' jingle

The brand was firm that it did not want to carry on with the montage film route;

it needed

a different take on dirt removal. The ad opens on the shot of a vehicle

rolling into a

puddle. A large amount of slush is about to fall onto a woman who is passing

by. But just

as the slush is ready to land on the woman, she sternly turns towards the

puddle. Pointing

her index finger at the slush, she says, "Nirma. Washing powder."

The slush pauses, surprised at the woman's words. She continues with the

words of the

jingle, in a firm tone and without any music, and the slush begins to

feel threatened.

Finally, she walks away untouched by the slush, which plops back into the

puddle, much

to the surprise of the onlookers. Without any change to the product

itself, the TVC

conveys the fact that dirt had better stay away from Nirma. Though Dhyani

was skeptical

about whether the big bosses at Nirma would like the firmness of tone in the

jingle, he

was pleasantly surprised when they were glad with the strict stand.

Nirma's success is synonymous with its advertising and marketing

strategy. When

Karsanbhai Patel started selling his detergent powder, he decided to call it

Nirma, derived

from the name of his daughter Nirupama. In the early years, the Nirma packet

featured a

lady washing a garment. Later, however, the design was changed and

an image of his

daughter was featured on the pack. The white dancing girl, featured in Nirma's

television

advertising, is perhaps the most enduring image of Nirma. Though Ms. Patel

passed away

in a car accident, she continues to live on in the corporate logo and the best

selling brands

of the company.

Nirma's advertising has always focused on the value-for-money angle.

Its simple and

catchy jingle -

Dudh si safedi Nirma se aye, rangin kapda bhi khil khil jaye

- has

continued to echo in the drawing rooms of middle-class Indian homes

through the

decades. While the jingle stresses on the product, it also salutes the savvy

and budget-

conscious Indian housewife. The jingle, which was first aired on radio

in 1975, was

broadcast on television in 1982. It is one of the longest running jingles and the

spot has

seen very few changes since the time it was first aired.

43


Nirma's promotion strategy, too, has many firsts to its credit. The

company pioneered

product sponsorship through the electronic media. Besides, the company has

developed a

unique advertising strategy - new products are launched with no

advertising support.

Once the distribution glitches are sorted out and the product reaches

the shelves of

retailers, the company begins to advertise it. The umbrella branding strategy

helps to give

new products instant recall without increasing the advertising expense.

Nirma used radio, posters, banners and mobile vans among others as

better media

options. It was also one of the first major advertisers on the National

Network, a fact

borne by its jingle

(Nirma Detergent tikia, iske jhaag ne jaadu kar diya),

which still

generates instant recall. When you hear the all too-familiar tune Washing

Powder Nirma,

you instantly know what it is talking about. The title 'Nirma Girl' going round

and round

on her feet and her white dress rising fluff too made for a strong mnemonic for

the brand.

This stood up to Surf's Lalitaji's "samajhdari."

Segment – Cosmetics

Promotional tools over the years

•

TV Campaign

•

Fairness Meter

•

Fair & Lovely Scholarship

Programme 2007 on Reliance

Mobile or R World (Aug 14 – Sep

17, 45,000 Response

•

Getting the Dream Man there were

a series of films made on getting

the man of one’s dreams. In

addition, Fair & Lovely also spoke

to the married women about keeping the spark in the marriage alive.

•

The Airhostess ad. A young dark skinned colored girl’s father laments he has

no son

to provide for him, as his daughter salary was not high enough-the suggestion

being

that she could not get better job or get married because of her dark skin.

44


•

The girl then uses the cream becomes fairer, and gets better paid job as an

air hostess-

and makes her father happy.

•

Theater Actress Advertisement

.

Fair and lovely scholarship

The Fair & Lovely scholarships are awarded annually to deserving

young girls who

intend to pursue higher education in India leading to Graduation, Post-

Graduation and

PhD. Awarded by the Fair & Lovely Foundation, the Rs 100,000 )US $ 2500)

scholarship

is meant for women ‘with an aptitude and ambition to achieve their goals’.

To provide visibility and synergy to the Fair & Lovely Campaign -

Reliance

Communications’ R World platform was thought to be the best medium for

advertising

the Scholarship programme for women as it gives a high reach in the desired

target group

The Foundation specifically targets women who are from the low-income

groups in the

rural and urban India.

This being a CSR activity the objective was to enable lead generation of

potential women

candidates with a cost effective campaign as Hindustan Unilever Ltd did not

include the

traditional media – TV & Print in its plan. To break free from the clutter of the

traditional

medium and be the first brand under the Hindustan Unliver Limited umbrella

to explore

the mobile platform which has never been used by the company in India

before.

Induce call for action by enticing the user to fill in personal important

details after

sharing the Scholarship and Fair & Lovely Foundation information which

then could be

followed upon to shortlist the applications received.

Banner Advertising: Fair & Lovely Scholarship clickable banner on top of the

screen on

the Main Menu of the Reliance Mobile World in WAP handsets.

The Banner was conceived to build rapid awareness about the Fair & Lovely

Foundation

and scholarship program.

Microsite: The banner was also linked to the microsite which captured the

essence of the

program in brief and allowed the interested users to apply then and there.

Millions of Impressions )more than 2 million impressions) have been

recorded on the

Fair & Lovely Foundation Banner Ad

45


The Banners were rotated / refreshed at regular intervals to maintain

saliency & ensure

that it does not become a blind spot.

Fair & Lovely Scholarship Zone: Lead Generation Zone for the fair &

Lovely

Scholarships

Aspiring women could apply for this scholarship through Reliance

Mobile Phones’ R

World for the first time. Short-listed applicants were to be contacted by Fair

& Lovely

Foundation

Potential students can send their entries through Reliance Mobile World on R

World>Hot

N New>>Schlrshp Zn

Circles targeted to tap maximum number of applications – UP, AP,

Maharashtra, Madhya

Pradesh &Chhatisgarh, Tamil Nadu, West Bengal and Karnataka.

Candidates could fill-in important information such as name, age, area of

interest to apply

through the Reliance Mobile World and apply instantaneously for the

scholarship.

The zone also has detailed information about the Scholarship program

and picture of

one of the previous scholarship winner – Amrita Singh which will inspire

others to apply

More than 30,000 students have applied on the Reliance Mobile World till

date, filling in

all 4 inputs required for a successful entry

SMS Blast: SMS has been sent to all subscribers in the select circles for

driving traffic to

the Scholarship Zone, encouraging students to apply.

IVR: The scholarship Program has also been promoted through the IVR in

select circles.

The message relayed gave information about the program and directed the

subscribers to

apply through the Reliance Mobile World.

Short Code: Subscribers can also apply by responding through the Short

Code 51234 to

Reliance Communications.

Reliance Mobile World Website: Campaign details have also been

uploaded on the

Reliance Mobile World website

46


The Campaign Results

Promotions in Rural market

When Hindustan Lever, the fast-moving consumer goods numero uno,

embarked on an

exercise in 2002 to promote its Fair & Lovely brand in the rural markets, the

brief was

simple and clear: the brand was being looked at by rural consumers more as

a one-time

make-up product rather than as a process product and this mis-

positioning had to be

corrected right away. The challenge was to convey to the consumers that this

product had

to be used regularly for a visible difference in complexion to happen.

Lever’s solution was an out-of-the-box one: The company created a brand

ambassador—

an educated woman in her mid-twenties who was seen as a trendsetter

—to spread its

gospel among the village’s women folk. The person was christened the ‘Fair

& Lovely

Didi’, a person who would educate women to become

sarva gun sampan

(i.e., replete

with fine qualities) by giving them cookery tips, tips on how to do fine

embroidery and so

on. By 2004, the initiative had expanded in scope to cover 11,000 villages.

The strategy

bore fruit: Within two months of its operation in an area, more than

80% of the

consumers there were viewing the brand as a process product. Encouraged,

HLL applied

this tactic to its other brands as well.

47


While connecting with the rural masses has always been an integral

part of Lever’s

marketing strategy, striking an emotional chord with rural India has now

become the

mantra for success of every big company

Promotion:

Advertisements on Television

In serial branding with product placement in DD serials

Relationship building:

Direct Contact Programs with villagers – sales team to visit from time to time

to increase

awareness, induce trial and repurchase

Find and target opinion leaders of the village to increase advocacy for our

product

POP’s – danglers, shop branding, bus shelters, buntings

Target beauty parlors – to stock and advocate our product

Presence of stalls during Bazaar – offering makeovers and sampling

ITC BISCUITS

Biscuits and tea in the morning were a routine. So were the key

market players and their favorite products. The two major

players Britannia and Parle were busy biting of chunks of the

national market among themselves, with a host of smaller

brands in various regions. While the business was still very

competitive, there wasn’t anything groundbreaking. In 2003,

with ITC foraying into the segment, a lot of that changed. At

that time, Britannia and Parle held, between them over 82 per

cent of the market in value terms. ITC decided to enter the

foods segment because it’s a Rs 550,000 crore market in India. But only 6 per

cent of this

is branded and packaged

48

CHAPTER 3

DATA COLLECTION

This report will be totally focusing on the FMCG companies preferences

towards different sales promotional techniques mean which sales

promotion technique is mostly preferred by the customer. As the sales

promotion techniques are used for the marketing of the product so the

research will be done in the area of marketing.

3.1 DATA SOURCES

The greatest challenge is not the collection of data, but rather knowing how to

use it.

There are two types of data, secondary and primary data.

Primary data

It is information that is collected for the first time, generated from original

sources. Primary data is specific made for the research questions.. The major

advantage of primary data is that the information is specific, current and

relevant. Disadvantages are the high costs and time associated with the

collection of the primary data.

Secondary data is information that already has been collected for other

purposes and is available to the researcher. Secondary data gives an

overview over the market and competitors. The major advantages of

secondary data are the low costs and time associated with its

collection. The disadvantage is that it is more general in nature than primary

data. Secondary data is collected from the documents, via published articles

and the Internet.

To collect empirical information from Internet can give advantages.

Internet can be used to collect information from companies,

organizations and articles. It can as well be used to do questionnaires

and interviews electronic. The disadvantage about Internet is the lack

reliability.

Information should be double-check and come from the main source to be

reliable.

The rule is that no primary data should be collected before secondary has

have been collected.

For this report I have taken secondary data sources as a data collection

method.

Secondary Data Sources

A) Literature Review:

To understand the general concept of Sales promotion and how FMCG sector

is using it. What promotional strategies are used by FMCG sectors,

What Strategies (if any) are relevant for the possible growth of FMCG product

How can these strategies be used to expected results in form of profits and

company growth.

B) Internet:

Internet provides a rich source of information regarding various companies of

FMCG Sector.

C) Newspaper:

Newspaper plays a vital role in disseminating the information to millions of

people. In Newspapers, one can see the advertisement of various FMCG

products.

CHAPTER 3

DATA ANALYSIS

4.1 SWOT ANALYSIS

The SWOT-model was chosen because it gives an understanding for

the intern strength and weaknesses of the company and its competitors.

The SWOT-model also shows external factors from the market .

The SWOT analysis can be described as follows

Analysis of FMCG Sector

Strengths:

1. Low operational costs

2. Presence of established distribution networks in both urban and rural ar eas

3. Presence of well-known brands in FMCG sector

Weaknesses:

1. Lower scope of investing in technology and achieving economies of scale,

especially in small sectors

2. Low exports levels

3. "Me-too" products, which illegally mimic the labels of the established

brands. These products narrow the scope of FMCG products in rural and

semi-urban market.

Opportunities:

1. Untapped rural market

2. Rising income levels i.e. increase in purchasing power of consumers

3. Large domestic market- a population of over one billion.

4. Export potential

5. High consumer goods spending

Threats:

1. Removal of import restrictions resulting in replacing of domestic brands

2. Slowdown in rural demand

Tax and regulatory structure

4.2 Case Study

MAGGI – “the king of noodle at home”

An important product of the nestle was launched in the market. It was

launched for the first time in the market in 1980.This then ruled the market

and was called the market leader for several years till the competitors

started entering in the market. After facing several challenges from the

competitors ,magi decided to relaunch itself with product expansion strategy

in 1997.It came up with different flavors and this change was not adjustable to

the tar get audience and Maggi s sales went down drastically. Many retailers

stopped maintaining the product in their shops.

Even after enjoying and ruling the market for more than 15 years, maggi had

a tough time in the market. Their target audiences in the beginning were

kids. To expand more it began extensive sales promotion like offering gifts

in return of empty wrapper. This strategy helped in improving the sale of

Maggi.This was followed by other promotional schemes. Some of these

include advertising of Maggi during and between kids show.

The punch line „Fast to cook, Good to eat became a part of Indian

advertising .This improved the sales of Maggi and observed a growth of 15%

during that period. This improved the sales of

Maggi and observed a growth of 15% during that period. By January 1994,

the price of Maggi noodles was brought down from rs.7 to rs.5 for a 100gm

packet of Maggi.In 2001; Maggi was able to sustain its leadership position by

introducing 50gms packs with two new flavors, tomato and curry.

Ultimately Nestle, tried to extend the brand in various categories and failed

many times, Maggi did rule the market in earlier phases only because of

the reason that it adopted an innovative strategy in the food

market.Maggi could have existed in the market in the growth stage for a

longer period had it adopted the new expansion strategies in the same

product.

The Kellog Company

In 1980, Peter A. Horekens, Marketing Director of Kellog Company was faced

with the problem of developing a market for ready to eat cereals in the Latin

American „region . Although Kellog had no competition in the ready to eat

cereals market in this region, they also had no market. Latin Americans did

not eat breakfast as the Americans did. The problem was especially

prominent in Brazil. To create a market and increase sales in this region,

Horekens had to clear a nutritious breakfast habit. Kellog Company,

headquartered in Battlecreek, Michigan, was founded in 1906 by

W.k.Kellog.The Company continued to operate successfully with sales in

1980 amounting to 2,150.9 million U.S. Dollars. The kellog company

produced and marketed a wide variety of convenience foods with ready to

eat cereals topping the distribution in 130 countries. The ready to eat cereals

sales made up the majority of international sales. In 1980, kellog international

operations accounted for 38 percent of kellog company s sales of more

than 52.0 billion. The United Kingdom was, by far, Kellog s largest

market.

Internationally, sales in the ready –to- eat cereal market continued to

increase, although in the past few years the competition also had increased.

But in Latin America, Consumption of ready- to-eat cereals were negligible.

The Latin American market, mainly Mexico and Brazil, showed great

potential as a Kellogg s ready to eat cereal market. The demographics fit

the ready-to-eat market; the only problem was Latin Americans did not eat

the traditional breakfast. The Latin American market included a growing

number of families with children. The population mix was becoming

younger. The developing economy enabled consumers to spend more than

their income on food.Kellog wanted to increase sales in this Latin American

region, especially Bazil, but consumers had turned their backs to the

American style breakfast. How was Kellog to create a nutritious

breakfast habit among the Brazilians? The Company asked J.Walter

Thompson (JWT), Kellogg s advertising agency to help instill the breakfast

habit in Brazil. According to Horekens,”In general, Brazilians do what

people in Novellas do.” Novellas are Brazilians soap operas. Walter

Thompson tried to advertise kellog kellog ready to eat cereals and instill the

breakfast habit by advertising within a soap opera .The first experience of

advertising within a soap opera failed; the advertising portrayed a boy eating

the cereal out of a package. Kellog wanted to teach the Brazilians, how to eat

a complete, a nutrition s breakfast, and not just Kellogg s cereal. The

commercial did not work because it made kellog ready to eat cereal seem

more like a snack than a major part of a complete breakfast.Kellog wanted to

portray ready to eat cereal as a part of a complete to be eaten in a bowl with

milk along with other foods to make a complete breakfast.

The company believed that the growing population in this region would

reinforce the importance of gr ains as a basic food source. The 1980,

Population in Brazil was 119 million, which made it the sixth populated country

in the world and the population was expected to grow to 165 million in the

next few years. With this population growth was an increase in the number of

women of childbearing age, which further supported Kellogg s potential for a

successful cereal market. The structure of the population in Brazil in 1980 was

Thirty seven percent of population under age 15

Forty eight percent of population under age 20

Twelve seven percent of population over age 50

Six percent of population over age 60

These figures showed that the population of Brazil better fit thee market for a

ready to eat cereal consuming segments.

The “Cult of the family” continued to be the most important institution in the

formation of the Brazilian society. This culture ideal was reflected in the ways

they conceptualized and evaluated the range of personal and social

relations. This seemed to be the way kellog would have to demonstrate

the importance of a nutritional breakfast – by playing up the family and

its importance.

Though the use of the novellas, Kellog made a second attempt to

teach the Brazilians the importance of Breakfast. Most Br azilian families

watched these soap operas. Composed mostly of family scenes in their

commercials, kellog opted for scenes that showed the family at the

breakfast table. One member of the family, usually the father, took the

cereal box, poured the cereal, and then added milk. This scene represented

a complete “Kellog” breakfast in a way that Brazilians could relate to. The

advertisement first on nutrition, then on flavor and finally on ease of

preparation. As a result of this campaign, sales in Brazil increased Kellog

controlled of 99.5 percent of the ready to eat cereal market in Brazil. However,

percapita cereal consumption was less than one ounce or several spoonfuls

per Brazilian annually even after advertising.

Although kellog controlled the market, there was not much of a market to

control. Brazilians had begun to eat breakfast, but Horekens was not sure

whether sales would continue to increase. His problem was – How could

kellog further convince the Brazilians of the importance of eating a nutritional

breakfast in order to establish a long term market?

Results and

Recommendations

Sales are the lifeblood of a business, without sales there would be no

business in the first place; therefore it is very impor tant that if a business

wants to succeed, it should have a sales promotion strategy in mind. The

primary objective of a sales promotion is to improve a company's sales by

predicting and modifying your target customers purchasing behavior and

patterns. Sales promotion is very important as it not only helps to boost sales

but it also helps a business to draw new customers while at the same time

retaining older ones. There are a variety of sales promotional strategies

that a business can use to increase their sales.

It is very essential to study how consumers make their choices in FMCG

category where there are several brands in the consideration set of a

consumer. The financial risk being low consumers do not mind switching from

one brand to another due to sales promotion offer. Hence it would be of

interest to a marketer to learn about consumer preferences with respect

to sales promotion offers; what schemes do consumers prefer for what kind

of brands, which media they prefer to learn about the schemes, whether they

pref er incentive immediately or at a later date.

Sales promotional activities are done for sales growth and brand promotion.

To retain the customer and make a good relationship with them. If a sales

promotion is warranted, the company comes up with a clear,

measurable objective they'd like to accomplish through the promotion.

Now a day s maximum FMCG companies are adopting sales promotional

activities to enhance their market share.

BIBLIOGRAPHY

Sales Promotion: How to Create, Implement and Integrate Campaigns That

Really Work

4th edition by Roddy Mullin and Julian Cummins

Best Sales Promotions, Sixth Edition by William A. Robinson

Cases in Marketing Management by Dr. Vishwas M. Dhekney

http://ideas.repec.org/p/iim/iimawp/2005-09-08.html

http://salespromotionmaterial/sales-development.htm

http://sales promotion material/Effective-Sales-Promotion-0045.html

http://salespromotionmaterial/how-to-create-a.html

http://salespromotionmaterial/salespromotionstrategy.html

http://salespromotionmaterial/Article.aspx.htm

tarun

Documents

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maintaining

lifebuoy swasthya

diminishing

hindustan

tooth cleaning

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sales promotion