INTRODUCTION 1. PROMOTION Promotion can be defined as any method that communicates to the target market about the right product to be sold in the right place at the right Price. Promotion is the activities people use to communicate with others about their product or service and to convince them to use it. Everything you do communicates something about your business. In tourism, this includes a wide variety of activities including brochures, billboards, and newspaper Ads. Promotion involves careful planning. When you see or hear effective promotion it is merely the "tip of the iceberg." A great deal of work went into planning the final product. But before talking about the planning process, we need to review the tools of promotion.
· Promotion is a form of corporate communication that uses various methods to reach a targeted audience with a certain message in order to achieve specific organizational objectives. Nearly all organizations, whether for profit or not-for-profit, in all types of industries, must engage in some form of promotion. Such efforts may range from multinational firms spending large sums on securing high-profile celebrities to serve as corporate spokespersons to the owner of a one-person enterprise passing out business cards at a local businessperson‟s meeting.
· Like most marketing decisions, an effective promotional strategy requires the marketer understand how promotion fits with other pieces of the marketing puzzle (e.g., product, distribution, pricing, target markets). Consequently, promotion decisions should be made with an appreciation for how it affects other areas of the company. For instance, running a major advertising campaign for a new product without first assuring there will be enough inventory to meet potential demand generated by the advertising would certainly not go over well with the company‟s production department (not to mention other key company executives). Thus, marketers should not work in a vacuum when making promotion decisions. Rather, the overall success of a promotional strategy requires input from others in impacted functional areas.
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· Promotion includes personal selling, advertising, sales promotion, and public relations. There are also different forms of each of these types of promotion such as broadcast, print, direct mail and electronic advertising that offer different advantages, disadvantages, costs and paybacks. The same message may be interpreted differently, based on the source of the message in terms of trustworthiness and credibility.
· In addition to coordinating general promotion decisions with other business areas, individual promotions must also work together. Under the concept of Integrated Marketing Communication marketers attempt to develop a unified promotional strategy involving the coordination of many different types of promotional techniques. The key idea for the marketer who employs several promotional options to reach objectives for the product is to employ a consistent message across all options. For instance, salespeople will discuss the same benefits of a product as mentioned in television advertisements. In this way no matter how customers are exposed to a marketer‟s promotional efforts they all receive the same information.
· Another one of the 4P's is 'promotion'. This includes all of the tools available to the marketer for 'marketing communication'. As with Neil H.Borden's marketing mix, marketing communications has its own 'promotions mix.' Think of it like a cake mix, the basic ingredients are always the same. However if you vary the amounts of one of the ingredients, the final outcome is different. It is the same with promotions. You can 'integrate' different aspects of the promotions mix to deliver a unique campaign. · The tools in the promotional mix include: 1. Advertising - Any paid form of non-personal presentation and promotion of ideas, goods or services by any identified sponsor. 2. Direct Marketing - The use of mail, telephone or other non-personal contact tools to communicate with, or solicit a response from, specific customers and prospects. 3. Trials and Service Promotion – Short term incentives to encourage trial or purchase of a product or service, such as discounted rates for services over a limited time period.
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4. Public Relations and Publicity - Programmes designed to promote and/or protect a company‟s image, or those of its products, including product literature, exhibitions and articles in professional or in-house newsletters.
5. Personal Selling - Face to face interactions with one or more prospective users, to generate increased activity. In a library context this will include “academic detailing” – one-to-one meetings with new or existing staff to brief them about a specific project or service.
6. Sponsorship - Financial or external support of an event or person by an unrelated organization or donor, commonly used in the arts, sports and charities. · The specific mix depends on a number of factors, including: 1. The promotion budget available 2. Stage of product in its life cycle 3. Nature of the competitive situation 4. The target audience 5. The nature of the product.
2. PROMOTIONAL STRATEGIES
In the sales profession, two effective ways to get business are to go out after it, or have it come to you. The first you do by prospecting; the second through promotional strategies. Most salespeople agree it's much more pleasant and less time consuming when prospects come to them. The beauty of promotional strategies is: they plant a seed in your prospect's mind. In effect, you've made a "reservation" to be considered for future business. If your prospect has had positive exposure to you in advance, you will more easily establish the relationship, make the appointment and complete the sale. Promotion can give you the name recognition you need. · Most of us are familiar with market research as suppliers (or information providers) try to obtain information from us (or library users) on what we require. Promotion is the 3
reverse side of this. Organizations use promotion to communicate with customers about products they offer. Promotion is thus one half of the communication process with customers. Ideally it will work cooperatively with market research (in an iterative feedback loop) so that the constantly changing requirements of users are met by promotional activities that target (or even anticipate) these expressed needs. · Such activities need to be managed. They require the allocation and expenditure of resources, whether physical (promotional products) or intangible (staff time or use of existing facilities). As such they cannot simply be allowed to grow organically – they require shaping and direction via a promotional strategy. · A successful promotional strategy multiplies the salesperson's presence and increases his effectiveness. A properly executed promotional program can accomplish these objectives:
1. Introduce your product or service to new prospects 2. Smooth the way for setting appointments 3. Encourage more purchases by current clients 4. Stimulate off-season purchases 5. Compete with competitor's promotional efforts 6. Keep present, former and future customers informed of your services 7. Enlarge your market by increasing activity in a wider geographic area
· All promotional efforts aim to increase sales. While advertising and sales promotion do this directly; publicity and public relations influence sales indirectly, by encouraging the buyer to think highly of you, your company, and your products. Most people would rather buy from a person or company they "like" even if they don't know them personally. · If your company handles most of its own promotion, you should still think of yourself as a company within a company. On a smaller scale, promotion is as important to the smaller company, as it is to the larger corporation.
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2.1 Types of Promotional Strategies
Promotional Strategies can be categorized as follows:
1. Personal Selling 2. Sales Promotion 3. Public Relations 4. Direct Mail 5. Trade Fairs and Exhibitions 6. Advertising 7. Sponsorship
2.1.1 Personal Selling
· Personal selling involves direct face-to-face relationships between sellers and potential customers. Personal Selling is an effective way to manage personal customer relationships. The sales person acts on behalf of the organization. They tend to be well trained in the approaches and techniques of personal selling. However sales people are very expensive and should only be used where there is a genuine return on investment. For example salesmen are often used to sell cars or home improvements where the margin is high.
2.1.2 Personal Selling Skills
First Impressions: Whilst you are assessing your client they are doing the same to you, and will make similar assumptions based on hairstyle, hair colour, general neatness, clothing, make-up, accessories and how closely you follow trends. These factors will contribute to your client's ultimate decision to purchase based on your advice or even to return or not. First and lasting impressions are often made in the first 10 seconds of meeting a new person: quite a daunting thought.
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2.1.3 Relationship Building: In order to establish a successful client/stylist relationship, the client must feel comfortable 4. and able to trust their stylist. Speaking with warmth and friendliness, empathizing and showing genuine interest with any arising problems, can develop this sense of trust. You should appear interested and animated during conversations and this relationship must be sincere. Aim to radiate professional warmth. It is important not to be overbearing with timid clients or too vague with dominant clients, hence correctly identifying client type is a skill that should be learnt as soon as possible. Look out for body language in order to provide a clue; and use active questions in order to confirm your ideas and also to ensure you understand your client's needs.
2.1.4 Greetings: Clients will feel more valued if they are made to feel important and welcome. As they arrive greet them by name, or if unknown introduce yourself. Do not leave a client unsure of where they should be or what they should be doing. Encourage conversation by checking that the style, colour or form from their last appointment has been a success; be prepared for a negative response and able to give an honest appraisal. Similarly, check that your client is happy with using their finish products at home. If not, offer alternative solutions and be prepared to explain why. These enquiries will help to make your clients feel special, providing reassurance and building confidence and trust.
2.1.5 Client Satisfaction: The essential ingredient for happy, satisfied customers is greatlooking hair that suits their lifestyle and can be successfully replicated in the home. The benefits of this are many, including an increased sense of trust between client and stylist. With this firmly established it is likely that a client will have more confidence in your recommendations. This is particularly helpful when encouraging them to buy OTC products, as they will assume that your talent for creating great hairstyles will be mirrored by your knowledge of products, so make sure it is!
2.1.6 Timing: The perfect time to recommend finishing products to your client is during the final stages of hairstyling when they can see the effect of a product on their hair. Discuss the end-styling process and describe the products you are applying, what you hope to achieve and any additional benefits. If more than one product is needed, and the 6
client is reluctant to make an expensive purchase, prioritize the most essential product. Make a note of what they bought and remind them to add extra products to their collection on future visits. Clients may visit the salon between appointments to purchase products: use their record card as a reminder of previous purchases and styling needs.
2.1.7 Demonstration: When selling a product it is essential to show the application benefits. First demonstrate on their hair and explain, where relevant, different methods of application, how much product to dispense and how to achieve the best results. The next step is to allow your client time to experiment, to ensure that they are able to achieve the same effect before they go home. The feel, look, smell and Packaging are all vital in encouraging a client to buy finish products. Describe these elements and use this time to explain fully all benefits, such as protection from the environment, added gloss or longlasting hold.
2.1.8 Problems and Concerns: Show interest in any concerns your client may have regarding the use and purchase of finish products. Once you are in possession of all the facts you will be better placed to offer an appropriate solution. Use this opportunity to perform a full consultation and diagnosis, you will then be able to target specifically and offer advice on problems. Use active listening and open questions to ensure a successful diagnosis, for example:
2.1.9 Body Language: It is essential to be aware of your body language at all times when interacting with clients. This is never more important than when you are encouraging them to buy products. The key skills involve making eye contact, using the appropriate gestures and being aware of any unconscious negative body language. Maintain openness with your client: sit facing them, use open gestures and look interested. 2.1.10 Sales Promotions Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and/or greater purchase of particular products/services by consumers or the trade.
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Advertising offers a reason to buy. Sales promotion offers an incentive to buy. Sales promotion tools for consumer promotion include cash refund offers, Prices off, prizes, patronage rewards etc. Sales promotion tools for trade promotion include Prices off, advertising and display allowances and free goods based on sales. Sales promotion tools aimed at salesmen of the company are contests, incentives for sales in fixed periods, trips to tourist locations etc.
2.1.10.1 Rapid Growth of Sales Promotion: In comparison to growth in advertising sales promotion has grown more rapidly and in many consumer packaged goods company it now accounts for 65% to 75% of the total budget (Kotler, 1997).
2.1.10.2 Purposes of Sales Promotion: Incentive type promotions are used to attract new buyers or triers, to reward loyal customers, and to increase the repurchase rates of occasional users. There is risk in putting a well-known brand leader on promotion more than 30% of the time.
2.1.10.3 Major Decisions in Sales Promotions: 1. Setting the objectives 2. Selecting the tools 3. Developing the sales promotion program 4. Pretesting the program 5. Implementing and controlling the program 6. Evaluating the Results of the program · Sales promotion tends to be thought of as being all promotions apart from advertising, personal selling, and public relations. For example the BOGOF promotion, or Buy One Get One Free. Others include couponing, money-off promotions, competitions, free accessories (such as free blades with a new razor), introductory offers (such as buy digital TV and get free installation), and so on. Each sales promotion should be carefully costed and compared with the next best alternative.
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· Sales Promotion refers to specific activities (such as point-of-purchase displays, brochures, coupons) which can generate a specific purchase behavior. · Sales Promotions differ from overall promotion in that they are onetime activities. They involve special sales, demonstrations, and other business stimulators that are temporary. Some common promotions are: demonstrations, novelties/gifts, special events, coupons, exhibit booths, incentives, celebrity appearances, discounts, promotional offers, holiday cards, open houses, and sales. As an individual salesperson, think up new ways to promote sales, especially when your company does not. Keeping an eye on the calendar and knowing when a product needs to be sold most heavily will help you plan ahead. Begin your sales promotion early so that awareness has been established when the season arrives. If your company is involved in Sales Promotions, take advantage of them. If your company has a booth at a trade show, volunteer to work it. At the show, exchange business cards with everyone you meet. Try to set appointments while you're at the show rather than calling everyone later. If your company gives out calendars, stamp your name on them. · Whether you're independent or represent a large company, you can generate many promotional ideas. They create an immediate sales impact. Many promotional items have a long life and can remind your clients and prospects about you and your product throughout the year, like wall calendars.
2.1.11 Public Relations · Public Relations is defined as 'the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its publics' (Institute of Public Relations). It is relatively cheap, but certainly not cheap. Successful strategies tend to be long-term and plan for all eventualities. All airlines exploit PR; just watch what happens when there is a disaster. The pre-planned PR machine clicks in very quickly with a very effective rehearsed plan. · Public Relations or Publicity is any free form of "mass selling." All of these methods try to inform, persuade and remind the target audience about your product or service. They are complementary to each other and should be integrated to maximize your results.
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· Public Relations mean relating to the public in a way that wins its appreciation. It involves goodwill and community awareness. Its affect on sales is indirect and more difficult to analyze. Sales do improve, however, because people like to do business with salespeople that take an interest in the community. In determining your best public relations strategies, you should consider: a) Who are your "publics?" They are groups of people who perceive you as a businessperson. Some publics act on their perceptions and increase your sales; others just appreciate you. It is important to identify each of your publics and develop strategies for improving your image with them. For example, if you sell real estate, your publics could be bankers, mortgage companies, customers, the community at large, other brokers, property managers, etc. b) How can you reach these publics? Many methods exist. Your choices might include: Contributions of time or money to particular groups and activities, such as sponsoring Little League, bowling teams, sporting events, cultural activities, charities, community development programs, and others. Public speeches - You can offer your services to a group who would like to hear you speak on your area of expertise. Staged events - Your targeted publics may sponsor picnics, anniversary parties, ball games or other events. Your presence at these occasions gives your public a chance to get to know you in a relaxed, non-business setting. Trade Associations - Belonging to these and special interest groups provides good PR for individuals and companies. Your membership shows that you care about the industry. You can also develop many prospects from your participation. c) What image do you want to convey? Public relations can be more important to an individual salesperson than to a company. Your image is an "intangible" asset that affects sales as much as your "tangible" assets (products). The way people see you on a day-to-day basis is very important. Therefore, public relations should be a way of life as well as a strategy for exposure. Professionalism is the best PR.
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2.1.12 Direct Mail · Direct mail is very highly focussed upon targeting consumers based upon a database. As with all marketing, the potential consumer is 'defined' based upon a series of attributes and similarities. Creative agencies work with marketers to design a highly focussed communication in the form of a mailing. The mail is sent out to the potential consumers and responses are carefully monitored. · For example, if you are marketing medical text books, you would use a database of doctors' surgeries as the basis of your mail shot.
2.1.13 Trade Fairs and Exhibitions · Such approaches are very good for making new contacts and renewing old ones. Companies will seldom sell much at such events. The purpose is to increase awareness and to encourage trial. They offer the opportunity for companies to meet with both the trade and the consumer. Expo has recently finish in Germany with the next one planned for Japan in 2005, despite a recent decline in interest in such events.
2.1.14 Advertising · Advertising is a 'paid for' communication. It is used to develop attitudes, create awareness, and transmit information in order to gain a response from the target market. There are many advertising 'media' such as Newspapers (local, national, free, trade), Magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor advertising (such as posters, bus sides). · Advertising means a paid, persuasive presentation promoting you, your company, and/or your product/service. Advertising is any paid form of "mass selling" or communication with large numbers of potential customers at the same time. No matter how subtle or obvious your ad, the desired outcome can be achieved only through: 2.1.14.1 Education - Making prospects aware of yourself or your product and what you can do for them 2.1.14.2 Preference Formation - Getting the prospect to like you and prefer your product to the competition 11
2.1.14.3 Generating an Inquiry - Advertising doesn't make a customer, you do. But, you must get people to tell you of their interest. The size and nature of your business will determine which advertising means you will use. If you're a sales consultant, it often doesn't pay for you to advertise on TV or in Newspapers. Trade journals can be a more effective medium. In determining which sources would best fill your needs, ask yourself some questions: 1. What message do I want to convey? Should more emphasis be put on my product/service or me? 2. What is my target audience? How can advertising expand it? Where will my target prospects most likely see my message? 3. How much can I afford to spend on advertising this year? Can I afford not to advertise? 4. When is the best time to advertise? · With answers to these basic questions, you can choose the best resources for advertising. The following list is not all-inclusive: TV, radio, Newspapers, direct mail, novelties, handbills/flyers, trade Magazines, billboards, shopper‟s guides, consumer Magazines, displays and brochures. · Patterns have emerged which show that some sources are better for salespeople than others. The most proven promotional methods in sales are, in this order: 1. Person to person contact 2. Telephone contact 3. Personal letter 4. Form letter 5. General promotional mailing 6. Display advertising · One good strategy combines a personal letter of introduction prior to personalcontact. The benefits of personal contact are obvious each contact has a high impact. Both methods can be utilized appropriately and successfully.
2.1.15 Sponsorship · Sponsorship is where an organization pays to be associated with a particular event, cause or image. Companies will sponsor sports events such as the Olympics or Formula 12
One. The attributes of the event are then associated with the sponsoring organization. These elements of the promotional mix are then integrated to form a unique, but coherent campaign.
2.1.16 Publicity · Publicity means getting exposure through the news media, utilizing announcements prepared by companies or the media of newsworthy stories or events. Publicity also can mean feature articles in Magazines. This coverage or "free advertising" can have spectacular results. Publicity often succeeds where advertising fails: Credibility - When people read an article in the paper or hear a story on the news, they automatically assume it is authentic and originated by the media. Subtlety - Your message reaches many prospects who would otherwise resist contact. Prospects "ingest" your message as news rather than as "advertising." Dramatization - Publicity can convey, "We are your neighbors, struggling with you and doing our part to improve life around us." Publicity, especially on a local level, helps create a feeling of community. · Publicity takes many forms. Your company or a public relations firm prepares press releases. These brief, newsworthy stories highlight you or the company in a way that interests the public. The difficulty is getting the media to use the story. To have your press releases published regularly, you must have expertise in publicity as well as good connections with the news media. · Feature Articles make excellent publicity. Written by staff or freelance writers for trade Magazines, professional journals, and consumer Magazines, they cover you or your business in more depth than a press release. If you're unique in some way, you may provide an interesting subject for a feature article that can be linked to your profession. In time your business will increase due to the publicity. · PhotoGraph 4.s are good publicity vehicles. Newspapers often print unusual, humorous and interesting photoGraph 4.s. If you have a photoGraph 4. that shows you or your company in an interesting light and is appealing from a journalistic viewpoint, send it to your local newspaper or trade journal.
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· It is rare to find a product or service that "speaks for itself" and doesn't need promotion. As professional salespeople, we must recognize that, and actively promote products as well as our service or ourselves. Promotional strategies will not only get you in the door, they'll bring the business to your door.
2.2 INTRODUCTION TO 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, personal cares, tissue paper, and chocolate bars. Subsets of FMCGs are 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.
2.2.1 The FMCG Industry The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert 14
consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the foodprocessing industry. Automatic investment approval (including foreign technology agreements within specified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for most of the food processing sector.
2.2.2 FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. These are products that have a quick turnover, and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. 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.
2.2.3 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 with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010.
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2.2.4 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 with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP).
2.2.4.1 Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the Availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas. 16
2.2.4.2 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, photoGraph 4.y, drinks etc. and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches, soaps etc.
2.2.4.3 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.
2.2.4.4 Leading FMCG companies
Some of the well known FMCG companies are Sara Lee, Nestlé, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc.
2.2.4.5Categories of FMCG Industry Attributes
Type of Products
Company Name
House hold Care
Soaps, Detergents, Household P&G, HUL, Nirma, ITC, Cleaners,Mosquito
Dabur.
Repellents, Personal Care
Oral Care, Skin Care, Hair P&G, HUL, ITC, Fem Care, Care,
Soaps,
Cosmetics,
Toiletries, Lakme, Marico, Himalaya, Deodorants, Emami,
Female Hygiene Products.
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Palmolive.
Dabur,
Colgate-
Food and Beverages
FOOD:
Staples/Cereals, Coca-Cola, Pepsi Co, Dabur,
Bakery products, Ice Cream, GlaxoSmithKline, Chocolate,
Braded
Khaitan,
sugar, United Breweries.
Branded Flour. BEVERAGES: beverage,
Health
Personal
cares,
Tea, Coffee, Packaged water, Liquor, Juice
2.3 Introduction to Topic
Comparative research, simply put, is the act of comparing two or more things with a view to discovering something about one or all of the things being compared. This technique often utilizes multiple disciplines in one study. When it comes to method, the majority agreement is that there is no methodology peculiar to comparative research. The multidisciplinary approach is good for the flexibility it offers, yet comparative programs do have a case to answer against the call that their research lacks a "seamless whole”. The following figures reflect rural India‟s significance to the country‟s economy. A major problem in comparative research is that the data sets in different countries may not use the same categories, or define categories differently.
2.3.1
Hindustan
Unilever
Limited (DOVE
SOAP)
is
an
Indian consumer
goods company based in Mumbai, Maharashtra. It is owned by Anglo-Dutch Company Unilever which owns a 67% controlling share in DOVE SOAP. DOVE SOAP's products include foods, beverages, cleaning agents and personal care products. DOVE SOAP was established in 1933 as Lever Brothers India Limited and, in 1956, became known as Hindustan Lever Limited, as a result of a merger between Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and employs over 16,500 workers, whilst also indirectly helping to facilitate the employment of over 65,000 people. The company was renamed in June 2007 as “Hindustan Unilever Limited”. 18
CHAPTER 2: RESEARCH DESIGN
1. OBJECTIVES OF THE STUDY The main objectives of the study are: 1. To study about promotional strategies. 2. To study the importance of promotions to business. 3. To compare promotional strategies of Dove with others. 4. To analyze the impact of promotional strategies of Dove.
2. RESEARCH METHODOLOGY
2.1 PROBLEM STATEMENT: “A Study done to analyze the promotional strategies adopted by HUL with specific reference to Dove Soap”
2.2 Research Questions: 1. What are the consumer‟s attitude towards the products of HUL specially Dove? 2. Analyzing the promotional strategies of Dove. 3. Analyzing the impact of promotional strategies of Dove done with reference to
Conveying complete information
Brand Building
Influencing Purchase
3. Sources of Data:
The researcher aims to adopt two sources to collect data for this study: 3.1 Secondary data sources: It will include references, literature, and periodicals relevant to the study in order to clarify basic concepts related to the study, its various dimensions, and to identify the most important studies on the subject.
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3.2
Primary data sources:
To have a better understanding of the study,
questionnaires will be designed and data will be collected from the consumers to test the effectiveness of the promotional strategies used by HUL and ITC for Dove soap and Other Soaps respectively.
4. SAMPLE SIZE
Consumers and dealer will be surveyed and about 150 of will be contacted to collect primary data. The respondents will be selected on the basis of random sampling. The selected respondents will be interviewed personally by administering questionnaires.
5. TOOLS
The Tools used for analyzing data are rating methods, pie charts, Graph 4.s etc.Questionnaires are distributed to the individual respondents and special care has been taken to make them comforTable 4. so that he/she could answer all the questions. This method is followed to get unbiased answers.
6. LITERATURE REVIEW
The advertising industry, as a whole, has the poorest quality-assurance systems and turns out the most in consistent product. The characteristics of advertisements effectiveness are covered in this section, which describes deferent marketing opportunities in advertising industry. In order to facilitate the understanding of advertising in a competitive market, cognitive models developed from diverse advertising research are discussed. The factors that could affect the emotional effects of advertising are then explained and categorized as advertisement factors, environment factors and audience factors by their characteristics.
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6.1 Advertisement effectiveness: Advertising effectiveness pertains to how well a company's advertising accomplishes the intended. Small companies use many different statistics or metrics to measure their advertising effectiveness. These measurements can be used for all types of advertising, including television, radio, direct mail, Internet and even billboard advertising. A company's advertising effectiveness usually increases over time with many messages or exposures. But certain advertising objectives can be realized almost immediately. (Rick Suttle 2009) 6.2 Brand awareness: Brand
awareness
is
a
Extent
to
which
a brand is
recognized
by
potential customers, and is correctly associated with a particular product. Expressed usually
as
a
percentage
the primary goal of advertising in
of target the
market,
brand
early months or
awareness years
is of
a product's introduction.(Aaker1999)
6.3 Celebrity endorsement: Celebrities are people who enjoy public recognition by a large share of a certain group of people. Whereas attributes like attractiveness, extraordinary lifestyle or special skills are just examples and specific common characteristics cannot be observed, it can be said that within a corresponding social group celebrities generally differ from the social norm and enjoy a high degree of public awareness. Last but not least, celebrities act as spokespeople in advertising to promote products and services (Friedman 1995) 6.4 Brand preference in personal care sector: William R. George (1999) reveals purpose of study of factors responsible for brand preference in personal care industry, increasing competition more, due to globalization is motivating many companies to base their strategies almost entirely on building Brands. Brand preference means to compare the different Brands and opt for the most preferred brand. This brand preference is influenced by various factors. In the 21
identification of factors affecting the brand preference, it was concluded that Brand persona is the most effective factor that affects the brand preference. This Brand persona deals with the personality aspects or the external attributes of brand, thus it can be said that consumer prefer any brand by looking at the external attributes of a brand. 6.5 Consumer awareness and consumption pattern of personal care product: Mita Sujan (1990) aimed to investigate the degree of brand awareness of various personal care products in relation to background and education of the household, the consumption pattern of various personal care products consumed by respondents in the light of their areas, income levels and education. a sample of 100 respondents comprising 100 form rural area and 100 from urban area were taken. Data are analyzed with the help of mean. The finding of this study reveals that there is low degree of brand awareness in rural areas, whereas there is a moderate degree of brand awareness in urban area. The highly educated rural and urban respondents have high degree of brand awareness for personal care products, and the less educated rural and urban respondents have low degree of brand awareness for personal care products. 7. PLAN OF ANALYSIS Qualitative and quantitative analysis of the content retrieved from the interviews and the questionnaires will be examined, collected, organized, processed and tabulated accordingly. Meaningful interpretation will be made using Graph 4.s. 8. SCOPE OF THE STUDY
The research is applicable in the area of customer decision making process based on the most effective advertisement tool. The scope of research also helps in understanding the preference of the customers. It would help the company in designing their marketing promoting sales. The intention of this project is to determine which product enjoys different benefits due to their advertisement effectiveness in the minds of the consumers. The research work will help define how does brand advertisement help the customer to pick or choose that specific brand and get a clear picture of Brand advertisements on how its really important part of the marketing strategy. 22
9. Limitation of the Study It is not possible for any study to make it accurate due to many hurdles in the collection and computation of data. Some limitations of the study are listed below.
Respondents show reluctance towards giving correct information.
Findings of the study are based on the assumption that respondents have disclosed in the questionnaire.
Time is a major constraint.
Lack of Availability of adequate information.
The study is dependent on the responses of the respondent who may provide rather biased responses.
The study is restricted to few places of Bengaluru.
23
CHAPTER 3: PROFILE OF INDUSTRY
1. INTRODUCTION TO HUL
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India and touches the lives of two out of three Indians. HUL works to create a better future every day and helps people feel good, look good and get more out of life with Brands and services that are good for them and good for others. With over 35 Brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household Brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond‟s, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Close-up, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall‟s and Pure it. The Company has over 16,000 employees and has an annual turnover of27408crores (financial year 2013 - 2014). HUL is a subsidiary of Unilever, one of the world‟s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of €49.8 billion in 2013. Unilever has 67.25% shareholding in HUL. 1.1 HUL’s history In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it began an era of marketing branded Fast Moving Consumer Goods (FMCG).
24
Soon after followed Lifebuoy in 1895 and other famous Brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 67.25% equity in the company. The rest of the shareholding is distributed among about three lakh individual shareholders and financial institutions. The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations. The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, 25
Lakme Unilever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its Brands to HUL and divested its 50% stake in the joint venture to the company. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary PAds. HUL has also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The UNL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Ice-cream Group families and in 1995 the Milk food 100% Ice-cream marketing and distribution rights too were acquired. Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, Specialty Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public 26
sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods. In 2003, HUL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports. HUL launched a slew of new business initiatives in the early part of 2000‟s. Project Shakti was started in 2001. It is a rural initiative that targets small villages populated by less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states and reaching to over 3 million homes. In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home business was launched in 2003 and this was followed by the launch of „Pure it‟ water purifier in 2004. In 2007, the Company name was formally changed to Hindustan Unilever Limited after receiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond and Surf Excel breached the Rs 1,000 crore sales mark the same year followed by Wheel which crossed the Rs.2, 000 crore sales milestone in 2008. On 17th October 2008, HUL completed 75 years of corporate existence in India. In January 2010, the HUL head office shifted from the landmark Lever House, at Back Bay Reclamation, Mumbai to the new campus in Andheri (E), Mumbai. On 15th November, 2010, the Unilever Sustainable Living Plan was officially launched in India at New Delhi. In March, 2012 HUL‟s state of the art Learning Centre was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai. In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai HUL completes 80 years of corporate existence in India on October 17th, 2013.
27
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
DEMOGRAPHIC ANALYSIS
Gender Table 4. 1: Gender Table
Gender
Responses Percentage
Male
23
27.06%
Female
62
72.94%
Total
85
100.00%
Graph 4. 1: Gender Graph
Gender Graph
Male
Female 27%
73%
INTERPRETATION OF THE DATA ANALIZED 27% of males and 73% of females respondents were surveyed to compare the promotional strategies of Dove soap.
INFERENCE: Most of the respondents were females because females are the major users of Dove soap and hence can give a better feedback for the research study.
28
Age Table 4. 2: Age Table
Age 20-30 30-40 40-50 50-60 Total
Responses Percentage 73 85.88% 5 5.88% 7 8.24% 0 0.00% 85 100.00%
Graph 4. 2: Age Graph
Age Graph 20-30
30-40 6%8%
40-50
50-60
0%
86%
INTERPRETATION OF THE DATA ANALIZED 86% of respondents were from the age group of 20-30 8% of respondents were from the age group of 30-40 6* of respondents were from the age group of 40-5
INFERENCE: As we can see from the above Graph 4.2, maximum respondents belong to the age group of 20-30, this may be due to the fact because youth are the maximum users of Dove soap and hence can give best feedbacks regarding the soaps.
29
Table 4. 3: Profession Table Profession Salaried Student Self-emp Others Total
Responses Percentage 13 15.29% 69 81.18% 1 1.18% 2 2.35% 85 100.00%
Graph 4. 3: Profession Graph
Profession Graph Salaried
Student
Self-emp
Others
1% 3% 15%
81%
INTERPRETATION OF THE DATA ANALIZED 81% of respondents were students 15% of respondents were salaried 1% of respondents were self employed 3% of respondents were from other professions
INFERENCES: Most of the respondents were students because we have seen in the above Graph 4.3. Maximum respondents belongs to the age group of 20-30 and this age group comprises of students only.
30
Q.No-1: Are you aware of Dove soap? Table 4. 4: Table for the respondents who were Aware of Dove soap
Q1 Responses Percentage YES 84 98.82% NO 1 1.18% TOTAL 85 100.00% Graph 4. 4: Graph for the respondents who were aware of Dove soap
Aware of Dove YES
NO
1%
99%
INTERPRETATION OF THE DATA ANALIZED 99% of respondents were aware of Dove soap
INFERENCE: Most of the respondents were aware of Dove conveying information that Dove is a popular soap.
31
Q. No-2: Have you ever used any of these soaps? Table 4.5: Table for the respondents who have used any of these soaps.
Q3 Dove Vivel Lyril Fiama Di wills Total
Responses Percentage 38 44.71% 6 7.06% 32 37.65% 9 85
10.59% 100.00%
Graph 4.5: Graph for the respondents who have used any of these soaps.
Responses Dove
Vivel
Lyril
Fiama Di wills
Total
22% 4%
50% 19%
5%
INTERPRETATION OF THE DATA ANALIZED 45% of respondents have used Dove soap 7% of respondents have used Other soap 38% of respondents have used both Dove and Other soaps 10% of respondents have no used any of these soaps
INFERENCES: As we can see 45% people used Dove and 7% people used Other . This conveys information that Dove is more used than Other by the respondents 32
Q.No-3: What influences your decision while buying soap? Table 4.6: Decision Table Preferences Brand Fragrance Price Packaging Promotions Availability Others Total
Responses N Percent 50 37.30% 30 22.40% 18 13.40% 11 8.20% 11 8.20% 6 4.50% 8 6.00% 134 100.00%
Percent of Cases 62.50% 37.50% 22.50% 13.80% 13.80% 7.50% 10.00% 167.50%
Graph 4.6: Decision Graph 150 100
Responses
50 0
Percent of Cases
INTERPRETATION OF THE DATA ANALIZED 37.3% respondents have preferred Brands to influence their decisions while buying soaps. 22.04% respondents have preferred Fragrance to influence their decisions while buying soaps. 13.4% respondents have preferred Price to influence their decisions while buying soaps. 8.2% respondents have preferred Packaging to influence their decision while buying soaps. 4.5% respondents have preferred Availability to influence their decision while buying soaps. INFERENCE: The Graph 4.7 shows that 37.3% of the people buy either of Dove or Other due to the parameter brand. This conveys consumers are highly influenced by the brand name of the products while making a purchase.
33
Q.No-4: Through which media you came to know about Dove soap? Table 4.7: Information medium Table of the respondents of Dove soap. Responses
Dove TV Internet Magazines
N 68 13 26
44.70% 8.60% 17.10%
Percent of Cases 86.10% 16.50% 32.90%
Newspaper
11
7.20%
13.90%
Radio Billboards Malls Supermarkets
4 6 6 10
2.60% 3.90% 3.90% 6.60%
5.10% 7.60% 7.60% 12.70%
6 2 152
3.90% 1.30% 100.00%
7.60% 2.50% 192.40%
Outdoor Others Total
Percent
Graph 4.7: Information medium Graph for the respondents of Dove soap.
50.0% 40.0% 30.0% 20.0% 10.0% .0%
44.7%
8.6%
17.1% 7.2%
2.6% 3.9% 3.9% 6.6% 3.9% 1.3%
Percentage
INTERPRETATION OF THE DATA ANALIZED
44.7% of respondents came to know about Dove soap through Television Media 17.1% respondents came to know about Dove soap through Magazines. 8.6% respondents came to know about Dove soap through Internet. 7.2% respondents came to know about Dove soap through Newspaper 6.6% respondents came to know about Dove soap through Supermarkets.
INFERENCE: The Graph 4. shows that 44.7% of the people came to know about Dove through Television Media. This conveys that majority of the respondents get their information about Dove soap through the Television Media.
34
Q.No-5: Through which kind of media you came to know about other soaps? Table 4.8: Information medium Table for the respondents for other soaps. Responses
Other TV
N 65
47.80%
Percent of Cases 83.30%
Internet
13
9.60%
16.70%
Magazines
20
14.70%
25.60%
Newspaper
11
8.10%
14.10%
Radio
4
2.90%
5.10%
Billboards
3
2.20%
3.80%
Malls
8
5.90%
10.30%
Supermarkets
7
5.10%
9.00%
Outdoor
3
2.20%
3.80%
Others
2
1.50%
2.60%
136
100.00%
174.40%
Total
Percent
Graph 4.8: Information medium Graph for the respondents for other soaps.
60.0% 47.8% 40.0% 9.6%14.7%8.1% 2.9% 2.2% 5.9% 5.1% 2.2% 1.5% 20.0% .0%
Percentage
INTERPRETATION OF THE DATA ANALIZED 47.8 % of respondents came to know about Other soaps through Television Media. 14.7% of respondents came to know about other soaps through Magazines. 8.1% of respondents came to know about other soaps through Newspapers. 5.9% of respondents came to know about other soaps through Shopping Malls. 5.1of respondents came to know about other soaps through Supermarkets. INFERENCE: The Graph 4.9 Shows that 47.8% of the people came to know about other soaps through Television Media. This conveys that majority of the respondents get their information about other soaps through the Television Media. 35
PRINT ADVERTISEMENT ANALYSIS
Q.No-6: Have you seen print advertisements of Dove soap?
Table 4.9: Table for the respondents who were aware of Print Ads of Dove soap
Q7 Responses Percentage YES 56 65.88% NO 29 34.12% TOTAL 85 100.00%
Graph 4.9: Graph for the respondents who were aware of Print Ads for Dove soap
YES
NO
34% 66%
INTERPRETATION OF THE DATA ANALIZED 66% of respondents have seen the Print Ads of Dove soap 3% of respondents have not seen the Print Ads of Dove soap
INFERENCES: As we can see that 66% of the people had seen Print Ads of Dove soap. we can say that most of the people are aware of Print Ads of Dove soap.
36
Q.No-7: Have you seen print advertisements of other soaps?
Table 4.10: Table for the respondents who were aware of Print Ads of Other soaps
Q8 Responses Percentage YES 43 50.59% NO 42 49.41% TOTAL 85 100.00%
Graph 4.10: Graph for the respondents who were aware of Print Ads of Other soaps
YES
NO
49%
51%
INTERPRETATION OF THE DATA ANALIZED 51% of respondents have seen the Print Ads of Other soaps.
INFERENCE: As we can see that 51% of the people had seen Print Ads of Dove. we can say that a reasonable number of the people are aware of Print Ads of Other .
37
PARAMETER 1: PRINT ADVERTISEMENTS Table 4.11: Parameter Table for the respondents who were aware of Print Ads Responses & Percentages Parameter QA QA QB QB QC QC QD QD QE QE QF QF 1 SA 4 4.71% 3 3.53% 7 8.24% 1 1.18% 8 9.41% 5 5.88% A 39 45.88% 27 31.76% 31 36.47% 34 40.00% 18 21.18% 24 28.24% N 25 29.41% 34 40.00% 30 35.29% 33 38.82% 35 41.18% 35 41.18% D 2 2.35% 6 7.06% 2 2.35% 2 2.35% 8 9.41% 6 7.06% SD 2 2.35% 2 2.35% 2 2.35% 2 2.35% 3 3.53% 2 2.35% NONE 13 15.29% 13 15.29% 13 15.29% 13 15.29% 13 15.29% 13 15.29% TOTAL 85 100.00% 85 100.00% 85 100.00% 85 100.00% 85 100.00% 85 100.00%
Graph 4.11: Parameter Graph for the respondents who were aware of Print Ads
50.00%
SA
40.00%
A
30.00%
N
20.00%
D
10.00%
SD
0.00% QA
QB
QC
QD
QE
QF
NONE
INTERPRETATION OF THE DATA ANALIZED 40% respondents have agreed that the Print Ads of Dove soap convey complete information about the product 45.88% respondents think that the Print Ads of Dove soap are attractive 41.18% respondents feel that they are neutral on Print Ads of Dove soap are better in convincing the customer to make a purchase than the Print Ads of Other soaps INFERENCE: As we can see in the above results most of the people agree that Print Ads of Dove are attractive and they also feel that these advertisements convey complete information about product. Hence, we can conclude that Print Ads of Dove are attractive and have a positive influence on customers.
38
VIDEO ADS OR TVC Q.No-8: Have you seen Video Advertisements of Dove soap?
Table 4.12: Table for the respondents who were aware of Video Ads of Dove soap
Q9
Responses
Percentage
YES
78
91.76%
NO
7
8.24%
85
100.00%
TOTAL
Graph 4.12: Graph for the respondents who were aware of Video Ads of Dove soap
YES
NO
8%
92%
INTERPRETATION OF THE DATA ANALIZED 92% of respondents have seen the Video Ads of Dove soap.
INFERENCE: We can say that most of the customers are aware of Video Ads of Dove.
39
Q.No-9: Have you seen Video Advertisements of Other soaps?
Table 4.13: Table for the respondents who were aware of Video Ads of Other soap
Q10 YES NO TOTAL
Responses Percentage 72 84.71% 13 15.29% 85 100.00%
Graph 4.13: Graph for the respondents who were aware of Video Ads of Other soap
Percentage YES
NO
15%
85%
INTERPRETATION OF THE DATA ANALIZED 85% of respondents have seen the Video Ads of Other soap.
INFERENCE: We can say that most of the customers are aware of Video Ads of Other .
40
PARAMETER 2: VIDEO ADS/TVC Table 4.14: Parameter Table for the respondents who were aware of Video Ads Responses & Percentages Parameter QA QA QB QB QC QC QD QD QE QE QF QF 2 SA 16 18.82% 11 12.94% 16 18.82% 19 22.35% 18 21.18% 21 24.71% A 39 45.88% 35 41.18% 39 45.88% 42 49.41% 27 31.76% 23 27.06% N 26 30.59% 32 37.65% 27 31.76% 21 24.71% 33 38.82% 32 37.65% D 0 0.00% 3 3.53% 0 0.00% 0 0.00% 3 3.53% 3 3.53% SD 2 2.35% 2 2.35% 1 1.18% 1 1.18% 2 2.35% 4 4.71% NONE 2 2.35% 2 2.35% 2 2.35% 2 2.35% 2 2.35% 2 2.35% TOTAL 85 100.00% 85 100.00% 85 100.00% 85 100.00% 85 100.00% 85 100.00%
Graph 4.14: Parameter Graph for the respondents who were aware of Video Ads
50.00%
SA
40.00%
A
30.00%
N
20.00%
D
10.00%
SD
0.00% QA
QB
QC
QD
QE
QF
NONE
INTERPRETATION OF THE DATA ANALIZED 45.88% respondents agree that the Video Ads of Dove soap are attractive 41.18% respondents feel that the Video Ads of Dove soap convey complete information about the product 37% respondents feel neutral towards the Video Ads of Dove soap are better in convincing the customer better than the Video Ads of Other soaps. INFERENCE: As we can see in the above results most of the people agree that Video Ads of Dove are attractive and they also feel that these advertisements convey complete information about product. Most of customers feel that Video Ads of Dove are more convincing than the Video Ads of Other Hence, we can conclude that Video Ads of Dove are more attractive and convincing than the Video Ads of Other .
41
SALES PROMOTION
Q.No-10: Have you come across Sales Promotions of Dove soap?
Table 4.15: Sales Promotion Table for the respondents who were aware of Dove soap
Q11 Responses Percentage YES 48 56.47% NO 37 43.53% TOTAL 85 100.00%
Graph 4.15: Sales promotion Graph for the respondents who were aware of Dove soap
YES
NO
44% 56%
INTERPRETATION OF THE DATA ANALIZED 56% respondents have come across the Sales Promotions of Dove soap.
INFERENCE: As we can see that 56% of the people had seen sales promotion of Dove. we can say that a reasonable number of the people are aware of Sales Promotion of Dove.
42
Q.No-11: Have you come across Sales Promotions of Other soaps?
Table 4.16: Sales Promotion Table for the respondents who were aware of other soap
Q12 Responses Percentage YES 32 37.65% NO 53 62.35% TOTAL 85 100.00%
Graph 4.16: Sales promotion Graph for the respondents who were aware of other soap
YES
NO
38% 62%
INTERPRETATION OF THE DATA ANALIZED 38% respondents have come across the sales promotion of Other soaps
INFERENCE: As we can see that 38% of the people had seen sales promotion of other soaps. we can say that a very few number of the people are aware of sales promotion of Other soaps .
43
PARAMETER 3: SALES PROMOTION Table 4.17: Parameter Table for the respondents who were aware of sales promotion Responses & Percentages Parameter QA QA QB QB QC QC QD QD 3 SA 8 9.41% 6 7.06% 6 7.06% 6 7.06% A 31 36.47% 27 31.76% 29 34.12% 22 25.88% N 35 41.18% 40 47.06% 39 45.88% 45 52.94% D 1 1.18% 2 2.35% 1 1.18% 1 1.18% SD 1 1.18% 1 1.18% 1 1.18% 2 2.35% NONE 9 10.59% 9 10.59% 9 10.59% 9 10.59% TOTAL 85 100.00% 85 100.00% 85 100.00% 85 100.00%
Graph 4.17: Parameter Graph for the respondents who were aware of sales promotions
60.00%
QA
40.00%
QB
20.00%
QC
0.00%
QD SA
A
N
D
SD
NONE
INTERPRETATION OF THE DATA ANALIZED 41.18% respondents have a neutral feeling on the sales promotion of Dove soap to be attractive. 34.12% respondents agree that the Sales Promotions of Dove soap attract customers to buy the products 47.06% of respondents have a neutral feeling that the Sales Promotions of Dove soap help in making customers aware of the product. 2.35% of respondents strongly disagree that the sales promotion of Dove are more attractive than the Sales Promotions of Other. INFERENCE: As we can see in the above results most of the people agree that Sales Promotions of Dove are attractive and they also feel that these promotion convey complete information about product Hence, we can conclude that sales promotion of Dove are attractive and have a positive influence on customers. We can also conclude that Sales Promotions of Dove soap are more popular & effective than Sales Promotions of Other soaps. 44
INTERNET ADVERTISEMENT
Q.No-12: Have you seen Internet Advertisements of Dove soap?
Table 4.18: Internet Ads Table for the respondents who were aware of Dove soap
Q13 YES NO TOTAL
Responses Percentage 44 51.76% 41 48.24% 85 100.00%
Graph 4.18: Internet Ads Graph for the respondents who were aware of Dove soap
YES
NO
48%
52%
INTERPRETATION OF THE DATA ANALIZED 52% respondents have seen the Internet Ads of Dove soap
INFERENCE: As we can see that 52% of the people had seen Internet Ads of Dove. We can say that a reasonable number of the people are aware of Internet Ads of Dove.
45
Q.No-13: Have you seen Internet Advertisements of Other soaps?
Table 4.19: Internet Ads Table for the respondents who were aware of other
Q14 YES NO TOTAL
Responses Percentage 44 31.76% 41 68.24% 85 100.00%
Graph 4.19: Internet Ads Graph for the respondents who were aware of Other
YES
NO
32% 68%
INTERPRETATION OF THE DATA ANALIZED 32% respondents have seen the Internet Ads of Other soap.
INFERENCE: As we can see that 32% of the people had seen Internet Ads of Other soap. we can say that less number of the people are aware of Internet Ads of Other soap .
46
PARAMETER 4: INTERNET ADVERTISEMENT Table 4.20: Parameter Table for the respondents who were aware of Internet Ads
Responses & Percentages Parameter QA QA QB QB QC QC QD QD QE QE 4 SA 2 2.35% 2 2.35% 5 5.88% 4 4.71% 4 4.71% A 20 23.53% 18 21.18% 19 22.35% 19 22.35% 15 17.65% N 39 45.88% 40 47.06% 38 44.71% 39 45.88% 42 49.41% D 2 2.35% 3 3.53% 1 1.18% 1 1.18% 1 1.18% SD 1 1.18% 1 1.18% 1 1.18% 1 1.18% 2 2.35% NONE 21 24.71% 21 24.71% 21 24.71% 21 24.71% 21 24.71% TOTAL 85 100.00% 85 100.00% 85 100.00% 85 100.00% 85 100.00%
Graph 4.20: Parameter Graph for the respondents who were aware of Internet Ads
60.00%
QA
40.00%
QB QC
20.00%
QD 0.00% SA
A
N
D
SD
NONE
QE
INTERPRETATION OF THE DATA ANALIZED 45.88% respondents had a neutral feeling on the Internet Ads of Dove soap to be attractive 49.41% respondents were even neutral on Internet Ads of Dove soap to be better than the Internet Ads of Other soaps. 45.88% respondents think that the Internet Ads of Other soaps attract them to buy the product. INFERENCE: As we see from the Graph that the respondents share a neutral feeling on the Internet Ads of Dove soap and Other soaps to be attractive and to be better than each other. Hence, we can conclude that the Internet Ads of both Dove and Other soaps have made a neutral influence on the respondents 47
CHAPTER-5 FINDINGS, SUGESSTIONS AND CONCLUSIONS FINDINGS Most of the respondents were females because females are the major users of Dove and Other soaps and hence can give a better feedback for the research study. Maximum respondents belong to the age group of 20-30, this may be due to the fact because youth are the maximum users of Dove and Other soaps and hence can give best feedbacks regarding the soaps. Most of the respondents were students because we have seen in the above Graph 4. Maximum respondents belong to the age group of 20-30 and this age group comprises of students only. People buy either of Dove or other soaps due to the parameter “brand”. It was found out that Dove is more used than other soaps by the respondents. This indicates that Dove is more popular than other soaps. Majority of the respondents get their information about Dove soap through the Television Ads, indicating that television ads of dove are popular. We can conclude that Television Ads is a strong medium to convey information. Television ads build strong brand image and convince customers to make a purchase. Most of the people are aware of Print Ads of Dove. A reasonable number of the people are aware of Print Ads of Other soaps conveying information that print ads of Dove are popular. As we can see that print ads of other soaps are not so popular but print ads of dove are popular, we can conclude that print ads of dove are influential. Video Ads of Dove are more attractive and convincing than the Video Ads of Other and when compared to TVC of other soaps it was found out that TVC of dove are more popular. A reasonable number of the people are aware of sales promotion of Dove. Sales Promotions of Dove are attractive and have a positive influence on customers. We can conclude that sales promotions of Dove are not so popular as the TVC and Print ads of Dove.
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Less number of the people are aware of Internet Ads of Other . Internet Ads of both Dove and Other soaps have made a neutral influence on the respondents. The promotional strategy of Dove is more attractive and convincing and is mostly approached as my analysis on my respondents. From the above findings we can conclude that:
The promotional strategies of Dove which include print ads, video ads, sales promotions and internet ads are popular
These promotional strategies attract and influence customers.
These promotional strategies build positive brand image of Dove.
These promotional strategies influence the customers to make a purchase.
SUGGESTIONS As we can see that Dove is successful in terms of its video ads and print ads, but is not doing so good in internet ads. Following suggestions can be made for the internet ads:
The company should come up with attractive and influential internet advertisements.
The company should do promotions through social media.
The company should create search engines.
The company should create beauty blogs etc.
Dove also has to work on its sales promotions. Following suggestions can be made for sales promotions:
There should be attractive and influential sales promotions.
There should be promotions like discounts, coupons etc.
The company should sponsor events like beauty contests etc.
The company should conduct loyalty programs etc.
There should be wall paintings, posters, etc. in semi urban areas.
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CONCLUSIONS In conclusion, Dove‟s promotional strategies have not only been successful in terms of sales but have also been a positive influence; it creates a brand image of a product which makes girls look beautiful. The TVC and print ads of Dove are very successful. They not only build a true brand image but also convince customers to make a purchase. Dove has to work in its internet ads and sales promotions. As per my survey I have learned that Dove‟s promotional strategy has also inspired other companies like Nike to focus on what might be thought of as flaws in their advertising as well. The promotional strategies of Dove shows that Dove cares about the real women beauty by creating thought provoking Ads, confidence building programs and messages that embrace all definitions of beauty. The implication of these promotions for Dove itself is that Dove might have special place in their customer‟s part of life because they think that Dove cares about them.
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CHAPTER-6 ANNEXURE QUESTIONNAIRE “A
Study done to analyze the promotional strategies adopted by HUL with specific reference to Dove Soap”
Dear Sir/ Madam As a student of IV Semester MBA (CMRIMS Autonomous, Bangalore), I Pratyush Raj B, am conducting a survey to analyze and compare the promotion strategies used by DOVE and OTHER soaps. This research is a part of my dissertation project. I have tried to compare the promotion strategies on the basis of four parameters, viz. Print Ads, Video Ads, Internet Ads and Distribution. I request you to please fill up this questionnaire. Thanks PERSONAL INFORMATION: Name: ______________________________________________________ Gender: Male
Female
AGE: A. B. C. D.
>20 ≤ 30 Years >30 ≤ 40 Years >40 ≤ 50 Years >50 ≤ 60 Years
Profession: Salaried
Student
Selfemployed
* Multiple (You can choose more than one) 1. Are you aware of Dove soap? A. Yes B. No
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Others
2. Have you ever used any of these soaps? A. Dove B. Vivel C. Fiama Di Wills D. Lyril If you have used any of these soaps please proceed further 3. What influences your decision, while buying soap? * Multiple A. Brand B. Fragrance C. Price D. Packaging E. Promotions F. Availability G. Others 4. Through which kind of media, you came to know about DOVE soaps?* Multiple A. TV B. Internet C. Magazines D. Newspapers E. Radio F. Hoardings/ Billboards G. Shopping Malls H. Supermarkets – On Trolleys/ In house Promotions etc I. Outdoor posters J. Others 5. Through which kind of media, you came to know about OTHER soaps?* Multiple A. TV B. Internet C. Magazines D. Newspapers E. Radio F. Hoardings/ Billboards G. Shopping Malls H. Supermarkets – On Trolleys/ In house Promotions etc I. Outdoor posters J. Others
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PRINT ADS: This section contains questions related to the Print Ads of Dove and Other soaps. Kindly choose the most suitable option by putting a tick mark in the space given below. 6. Have you seen Print Ads of DOV E Soaps? A. Yes B. No 7. Have you seen Print Ads of OTHER Soaps? A. Yes B. No If yes then please proceed if not you can skip to the next question. SL.NO
QUESTIONS
1
Do you think Print Ads of Dove soap are attractive?
2
Do you think Print Ads of Dove soap convey complete information about the product?
3
Do the Print Ads of Dove soap, create strong brand image of the product?
4
Do the Print Ads of Dove soap; attract the customers to buy the product?
5
Do you think Print Ads of Dove soap are more appealing than the Print Ads of OTHER soaps
6
Do you think Print Ads of Dove soap are better in convincing the customer to make a purchase than the Print Ads of OTHER soaps
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
VIDEO ADS/TVC: This section contains questions related to the Video Ads/TVC of Dove and Other soaps. Kindly choose the most suitable option by putting a tick mark in the space given below. 8. Have you seen Video Ads of Dove soap? A. Yes B. No 9. Have you seen Video Ads of OTHER Soaps? A. Yes B. No If yes then please proceed if not you can skip to the next question.
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SL.NO 1 2
3
4
5
6
QUESTIONS
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Do you feel TVC of Dove soap are attractive? Do you think TVC of Dove soap convey complete information about the product? Do you feel TVC of Dove soap create a strong brand image of the product? Do you think TVC of Dove soap attract customers to buy the product? Do you think TVC of Dove soap are more appealing than the Print Ads of OTHER soaps? Do you think TVC Of Dove soap are better in convincing the customer than the Print Ads of OTHER soaps?
SALES PROMOTIONS: This section contains questions related to the Sales Promotions of Dove and Other soaps. Kindly choose the most suitable option by putting a tick mark in the space given below. 10. Have you come across Sales Promotions of Dove soap? A. Yes B. No 11. Have you come across Sales Promotions of OTHER Soaps? A. Yes B. No If yes then please proceed if not you can skip to the next question. SL.NO 1 2
3
4
QUESTIONS
Strongly Agree
Do you feel Sales Promotions of Dove soap is attractive? Do you feel Sales Promotions of Dove soap help in making customers aware of the product? Do you think Sales Promotions of DOVE attract the customers to buy the product? Do you think Sales Promotions of DOVE are more attractive than the Sales Promotions of OTHER soaps? 54
Agree
Neutral
Disagree
Strongly Disagree
INTERNET ADS: This section contains questions related to the Internet Ads of Dove and Other soaps. Kindly choose the most suitable option by putting a tick mark in the space given below. 12. Have you seen Internet Ads of Dove soap? A. Yes B. No 13. Have you seen Internet Ads of OTHER Soaps? A. Yes B. No If yes then please proceed if not you can skip to the next question. SL.NO
QUESTIONS
1
Do you feel Internet Ads of Dove soap are attractive?
2
Do you think Internet Ads of Dove soap convey complete information about the product?
3
Do you feel Internet Ads of DOVE help in creating strong brand image?
4
Do you think Internet Ads of Dove soap attract customers to buy the product?
5
Do you think Internet Ads of Dove soap are than Internet Ads of OTHER soaps
Strongly Agree
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Agree
Neutral
Disagree
Strongly Disagree
CHAPTER-7 BIBLIOGRAPHY BIBLIOGRAPHY
Philip Kotler and Kevin Keller, Marketing Management, Pearson Education, 14th edition (2012).
Kahneman, American Psychologist. Pg.: 58, 697 – 720. (2003)
Jackson, T, A report to the Consumer Behavior Research, (2005).
Cialdini, R. B. and Goldstein, N. J, Review of Consumer Behavior.Pg:55, 591 – 621. (2004)
Kent Huffman, Advertisement and Public Relation Research, (2007)
Tanner Okun, Consumer Behavior: Insight, (1990)
Schmitt, Advertisement Promotion, (1999)
Rick Suttle, Consumer Behavior and Managerial decision making, (2009)
Friedman, Marketing Management, (1995)
WEBSITES: http://www.hul.co.in/ http://www.itcportal.com/ https://www.google.co.in/
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