Product and Brand Management

Cycle Agarbattis

Submitted by: Sunil Rao (36) Pallavi Srivastava (55) Mansi Patil (130) Vinay Singh (150) Akansha Raje (158)

History and Ownership
• Began as "Mysore Products and General Trading Company" in 1948. • Founder: Sri. N.Ranga Rao • Owned by the Rs. 130 crore, Bangalore based N Rangarao and sons. • NR Group has the strongest R&D setup in the entire agarbatti industry.(Over 500 agarbatti fragrances) • Market leader in India and also exports to 60 different countries.

Brand Elements
• • • • Name: Cycle Agarbatti Logo: A Cycle which symbolizes Quality. Tagline: “Bhagwaan Hai" Graphics: Depiction of Gods in its packaging and print ads. • Sounds: The brand also has few signature tunes to make sure that the brand has its presence in the minds of consumers. • Scents: The agarbattis produce an exhilarating fragrance that tantalizes the senses and moves the soul.

. • Used during meditation. spiritual sessions and yoga practices. • Jasmine incense sticks proves valuable remedy for depression. powders are used to form the paste. flowers. stress and fatigue. • Lavender incense sticks are said to relieve stress and headaches when burnt in the work place. • Used in everyday life as air fresheners and in aromatherapy as mood enhancer or stress relieving agent. • Different natural herbs. aromatic oils are used for making these sticks.Product related Elements • Synonymous with religious prayers and ritual ceremonies. • Saffron incense sticks is mainly used in aromatherapy. • Many herbal extracts and aromatic oils.

Brand portfolio .

• They have all range of customers. . • From auto rickshaw wala to shopowners every one uses it. Upper middle class. Rich. Middle class.Profile of Target Customer • Lower middle class. • It is used during inauguration of event or festival etc.

Kannad(Devaru iddarre). Marathi to cater to the varied target customers • Radio: There are radio ads of the brand in different regional languages • TV Commercials: Phir bhi dil hai Hindustani and Bhagwaan hai are few popular ads that are hit on TV • Signature Tunes: The brand also has few signature tunes to make sure that the brand has its presence in the minds of consumers • During the ICC Cricket World Cup they have launched the ‘Pray for India’ campaign which was part of all their communications during that period.Communications • Print Media: “Bhagwaan hai” which has come in regional languages like Malayalam. Gujrati. .

DISTRIBUTION Stick Maker Stick Sorter R/M Suppliers Agarbatti Roller Forest Dep/Bamboo Supply Sorting of Agarbatti Packaging Packaging Section Agarbatti Perfumer Perfume Industry Transporter Retailers Customers .

MRP : Rs 50 Cycle Lia Agarbatti 70 sticks MRP : Rs 30 .Pricing BRAND Cycle Agarbatti PRICE 120 sticks.

Pricing BRAND Cycle Hexa Agarbatti PRICE MRP : Rs 10 Cycle 3 in 1 Agarbatti 30 gms MRP : Rs 10 .

advertisement campaigns and quality. • Cycle established their presence in the less attractive market as a brand by some effective campaigns emphasizing on quality and fragrance. • Cycle agarbattis thrived in the market by continuous innovation in their packaging and fragrance.Positioning • ‘Cycle’ is positioned as a premium brand and differentiated from others in terms of packaging. .

10 – Rs 60 packets for agarbattis • 3-in-1 and 5-in-1 packets • Promotes the religious cause • Availability in kiranas.Ranges from Rs. pan shops.POP’s and POD’s Point of Similarity: • Pricing. supermarkets etc Point of Difference: • Good Quality • Better Packaging • Better offers for customers during festivals • Give importance to promotions • Variety in fragrance • Pooja Kits are also their USP .

• Appropriately priced to appeal to a cross-section of consumers at various price segments. Ananth and Mogra. Madhur.Competitor Analysis • ITC has launched Mangaldeep Agarbattis across a wide range of fragrances like Rose. 'Fragrance locking' is a unique concept of packaging which retains the fragrance for a longer period and helps in "Completing the Purity of Prayer“. Tarangini.Jasmine. Bouquet. Anushri. Durbar. • First in the country to receive the ISO90002001certification for agarbatti making . Sandalwood. These agarbattis are available in innovative 'Fragrance-Locked' packaging.

Oman and South Africa. United Arab Emirates. • Extending similar support to other NGOs in states like Bihar. • Over 100 village women are gaining from the training that this organisation imparts in rolling agarbattis. Bahrain. . Tripura and Tamil Nadu. Nepal.Competitor Analysis Continued… • Exported to United States of America. • Supporting an 'Agarbatti Community Participation Programme' run by the Vyakti Vikas Kendra. a nonprofit organisation founded by the renowned spiritual guru Sri Sri Ravishankar and located near Bengaluru. Malaysia. Singapore.

signature tunes and social activities performed by the brand Launched campaigns like ‘Pray for India’ Campaign during Durga Puja in West Bengal Free match box with the pack Always ‘top-of-the-mind’ recall Brand Image : • • • Pleasing fragrance Readily available Long lasting Brand Mantra : Innovation. variety and surprise for the customer .Sources of Brand Equity & Brand Mantra Brand Awareness : • • • • • High due to advertisements like ‘Bhagwaan Hai’ .

Religious festivals. Gift to loved ones. quality . Spirituality • High Depth : Top of the mind recall due to easy availability. Ayurveda.Customer Based Brand Equity Pyramid Resonance • • Loyal customers Repeat purchase Judgements: • Value for money • Durability Performance: • • • • • Creativity : Good Fragrance 3-in-1 pack Quality ‘Cycle’ – across all languages Distribution: Easy availability Feelings: • • Warmth Self-respect Imagery: • • • • Innovative Product Differentiation : Variety Socially responsible Excellent packaging Salience : Brand Awareness • High Breadth : Pooja. Room freshner.

Major Issues • Agarbatti is a commodity • Input costs are rising .

Brand Strategies .

•Poor living condition at bottom of the network OPPORTUNITIES •Large export market potential.) •Support of Government departments . NGOs WEAKNESSES •Decrease in raw material availability •Lack of mutual trust •Customer awareness is very low amongst low-end producers. •Large labour base •Exposure to Export markets •No power requirement •Aids to poverty elevating program •Has a huge potential to generate employment •Recognized under the handicraft sector •Supports many allied activity of handicraft (Bamboo splitting.SWOT ANALYSIS STRENGTHS •Art of perfuming is well accustomed. •Forest based raw material supply becoming scarce •Mechanization . acts etc. •Scope for innovations and R&D •Domestic market expanding •Machine milled. •Lack of innovations and experimenting skills to explore the new users & uses •No progress in R&D •Laws. •Unethical practices at local level. •Finance is not liberal since industry involves large working capital. hand rolled batties are having a competitive edge over machine made agarbattis •Free trade regime can provide better raw materials for better price THREATS •Global competition. Paper tube making etc.

Mc Kinsey’s 7S Model Mckinsey’s 7S Model The 7s Framework of McKinsey is a management model that describes 7 factors to organize a company in a holistic and effective way .

•Since N.Ranga Rao & Sons is a private ltd company. Major decision however is taken is at top-level management of the company. •Quality checks at vendor premises daily. is our norm for out-sourced processes.Mc Kinsey’s 7S Model Application of 7s Model: 1. 2. The structure of the organization is democratic. System: •Quality always has been an integral part of the organization in all processes during product realization. Structure: •The organization chart and accompanying baggage that show who reports to whom and how tasks are both divided and integrated. •AWARENESS on the importance of quality and introduction of FORMAL methods for quality control and improvement has been an evolutionary development over 6 decades .

Ranga Rao & Sons instead of „Boss-Subordinate‟ relationship among the employees of the organization. the whole staff is allowed to participative in the decision making where by suggestions are sought and if found appropriate are accepted and implemented.Mc Kinsey’s 7S Model 3. The top management always encourages changes in the organization provided they happen to be always ready to cope with different situation. 2. In N. Style: Style is one which top managers can use to bring about organization change. superior acts as a guide and facilitator for his subordinates. The reasons to support this are as follows: 1. . Whenever important decision are to be made. 1.

Skill: •The qualified personnel with required skills and competency are recruited and selected for the required designation. For example: for recruiting and selecting the manpower required by the Marketing department the criteria would be MBA (Marketing) and who have the capabilities and competencies to handle the functioning of work smoothly.Group in all over India. 1500 plus employees are working under N.R. Staff: •Employees are the functional unit of any organization •The company contributes to the prosperity of the society as whole by providing equal opportunities to all •The company provides training to get gainful.Mc Kinsey’s 7S Model 4. 5. high performance employees. .

•Advertisement in a traditional and devotional way like Bhagawan hai. Devaru eddare • Sponsoring Third umpire ship in International cricket matches • Building bus stands in the Mysore city with colourful background of Cycle pure agarbattis posters . the exclusive retail showroom of the Mysore based NR Group located on Dhanwantri road in Mysore city. Strategy: The strategies being adopted by the company: "FRAGRANCE WORLD”. THE EXCLUSIVE RETAIL SHOWROOM: Fragrance World‟.Mc Kinsey’s 7S Model 6.

. and feelings.Ranga Rao & Sons is that they are meeting the demands of the customers and fulfilling the expectations in the form of productions and its variability. Value of NR Group: • Honesty • Discipline • Transparency • Cleanliness • Total quality • Self-reliance • Co-operative free politics • Respecting others opinions. emotions. thoughts. Shared values: The common feeling among the people in the N.Mc Kinsey’s 7S Model 7. The employee also have belief that they are giving at the best possible price to milk they procure from farmers.

Suggested 4Ps of Marketing Strategy Product The company should come out with the following products: Agarbatti’s namely: a)Super b)Medium c)Regular In four perfumes. namely: a)Lily b)Rose c)Jasmine d)Mogra e)Without perfume .

25 d) (Extra Bada) – Rs. Retail Outlets. Door to Door selling . Pan Shops Rural Areas – Haats.40 e) Jumbo – Rs. Kiranawala. Kirana Shops.10 c) Thick (Bada) – Rs. In five types of prices: a) Mini Pack (Kabhi Kabhi) – Rs.90 Place Urban Areas – Super Market.Suggested 4Ps of Marketing Strategy Price The company should come out with innovative pricing strategy. Pan Shops.2 b) Regular Pack (Rozana) – Rs.

Suggested 4Ps of Marketing Strategy Promotion Following promotional strategies should be followed: a)Banners b) Distribution of free mini pack with some of the regular household commodity(Bundling) c)Pamphlets d)Painting on the walls or shutter of the kirana & general stores Social marketing – Use 50paisa to 1 Rupee from sale of each packet for social causes .

Rhythm etc. The advertisement should develop a purchase intension in the minds of the viewers. 4) Offer sample packs to all outlets so that the product gains awareness. give more discounts and offers have to be provided Example: If u can give a coupon inside the pack of Agarbatti. and Magazines etc. this will give the buyer more choice Example: Lia. if ten coupons are collected one pack can be given free or any small gifts can be given. Bansuri. 2) To make the buyers more loyal towards the brand. .Recommendations 1) Advertising can be done in all mediums like TV. On the whole effective advertising in the media is necessary. Such offers may develop a brand loyalty towards Cycle Pure. Radio. 3) Product proliferation: introduce the products with lots of variety.

.Recommendations 5) Sample packs can also be given with some local magazines which are being sold. 6) The sticks must be more thick and The chemicals used in incense stick will not attach to the consumer hands 7) Many competitors are providing 1Rs and 2Rs packets with 4 or 6 sticks for a day use therefore company can grab that opportunity. 8) Company should give more important on quality because some of the incense sticks will not burn fully and in the middle itself it will off so company has improve on quality. 9) Increase the quantity of agarbatti packets of 10Rs and 12Rs.

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