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CHAPTER-1

INTRODUCTION
I.ABOUT THE DISSERTATION

INTRODUCTION
Advertisements convey brand differentiation and this may be important in several categories, which consist of several brands. In FMCG products like tea, coffee and detergents, differentiation awareness can be created by television advertising, but in certain categories there may be a need to demonstrate the effectiveness of brands. Differentiation with which consumers cannot connect may have a negative implication and if a brand connects consumers with its differentiation, it is likely to also differentiate itself in terms of getting identified with the consumer. A detergent or a washing machine, which claims low water consumption has to demonstrate this claim at a retail outlet especially given the fact that the quality of water varies across areas even in a specific geographical region. It is also essential that a good differentiation proposition result in a positive word-of-mouth. In a certain situation, the company may have two offerings in a product-line and there is a need to differentiate them clearly depending on the target segments involved. This is a complex situation where differentiation decides the growth of the brand and the perceived difference between the offerings. An added layer to the complexity is the same brand name being used for the offerings. Fairness cream is a category in which the benefit is the fairness of the complexion. A brand like Fair and Lovely built over the years still has a strong association with the category but under tremendous pressure from competitive brands and the most important criteria which these brands is the herbal touch associated with them. Herbal ingredients are becoming popular with consumers in several categories and personal care in India has a strong tradition of herbal care. Fair and Lovely had to launch its herbal variant (it used the same brand probably because of the brand equity built up over the years). The interesting fact is the differentiation being conveyed by advertising. The original version uses an aspiration route in which the brands ultimate benefit is success through confidence.

Estimates based on China's current per capita Consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of 2

Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert consumers to branded products. Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in India is low. The contrast is particularly striking between the rural and urban segments the average consumption by rural households is much lower than their urban counterparts. Low penetration indicates the existence of unsaturated markets, which are likely to expand as the income levels rise. This provides an excellent opportunity for the industry players in the form of a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies. A rise in per capita consumption, with improvement in incomes and affordability and change in tastes and preferences, is further expected to boost FMCG demand. Growth is also likely to come from consumer "upgrading", especially in the matured product categories.

CHAPTER 1.1 FMCG AN INTRODUCTION

I. INDIAN II.MARKET OPPORTUNITIES III.EVOLUTION AND CHARECTERSTICS

CONTEXT

FMCG FAST MOVING CONSUMER GOODS

MARKET OPPORTUNITIES IN FMCG

According to Estimates based on China's current per capita Consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert Consumers to branded products. The FMCG sector is also a rapidly evolving one, where companies have to literally move fast to ensure they are ahead of the competition. While advertising and promotion costs are high, companies have to frequently launch new products to expand their market share. Leading FMCG players have a vast portfolio of products and brands that keeps growing by the day. For many FMCG companies a large chunk of their revenues up to about 60 per cent comes from new product launches. Companies like Dabur, ITC, Britannia Industries, Nestle and Amul are among those, which are currently unveiling dozens of new products in time for the peak consumer season. Leading FMCG firms like UL, ITC, Nestle, Procter & Gamble and Glaxo SmithKline Healthcare which account for almost 70 per cent of FMCG revenues in the country spend almost 10 per cent of their turnover on advertising and brand promotion. They also focus a great deal on new product launches. With growing

competition in the sector, it is natural that ad spends keep rising. Unlike the manufacturing sector, FMCG is not capital-intensive, but expenditure on promotions and branding is huge.

Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in India is low. The contrast is particularly striking between the rural and urban segments the average consumption by rural households is much lower than their urban counterparts. Low penetration indicates the existence of unsaturated markets, which are likely to expand as the income levels rise. This provides an excellent opportunity for the industry players in the form of a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies. A rise in per capita consumption, with improvement in incomes and affordability and change in tastes and preferences, is further expected to boost FMCG demand. Growth is also likely to come from consumer "upgrading", especially in the matured product categories.

CHARACTERSTICS

Supply

Abundant supply in metros. Distribution networks are being beefed up to penetrate the rural areas. HLL expects the FMCG market to triple in market size by FY10, which highlights the potential.

Demand

Barriers to Entry

Huge investments in promoting brands, setting up distribution networks and intense competition, but the sector is not capital intensive.

Bargaining Power of Suppliers Some of the companies are integrated backwards, which reduces the supplier's clout. Manufacturing is largely outsourced.

Bargaining Power In case of branded products, there is little that the consumer can of Customers influence, but intense competition within the FMCG companies results in value for money deals for consumers (e.g. buy one, get one free concept).

Competition

Competition is faced from both domestic, MNCs and also from cheaper imports, which are increasingly visible in urban markets. Price wars are a common phenomenon.

FORECAST 2010
Rural and semi-urban 128 million population thrice the urban Market size growth from 48k to 100k Crores (Growth of 50% at 10%CAGR) 8

Increase penetration from the current less than 1% Problems in the rural sector Low per capita disposable incomes Large nu mber of daily wage earners Acute dependence on vagaries of monsoon Seasonal consumption Poor infrastructure roads and power supply Urban Market 16.5k to 35k Crores (Growth of 100% at 20%CAGR) Intense competition severe pressure on margins Focus on newer products, such as fruit juices

Source: Assocham Report Future Prospects of FMCG

CHAPTER- 1.2 DIFFRENTIATION


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I. UNDERSTANDING DIFFRENTIATION II.TYPES OF DIFFRENTIATION III.THE INDIAN CONTEXT

UNDERSTANDING DIFFERENTIATION
Differentiation is the process of adding a set of meaningful and valued differences that distinguish a company's offering from those of its competitors. Differentiation is strongest when it satisfies all of the following criteria: 1. Important: the difference delivers a highly valued benefit to a sufficient number of buyers 2. Distinctive: the difference can be delivered in a clear way 3. Superior: the difference is a better way of obtaining a benefit 4. Pre-emptive: the difference cannot be easily copied 5. Affordable: the buyer can afford to pay for the difference 6. Profitable: the company will earn a return by maintaining the difference

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BRAND loyalty fast moving consumer goods categories is a topical issue, with several brands resorting to price cuts across categories. More importantly, price cuts or sales promotion by themselves do not seem to have done much for brands in terms of sustaining brand loyalty. They may attract consumers in the short run: consumers may stock the brands and consumers new to the brand may try it. But over a period of time, a brand's value may get diluted in consumers' psyche, and will eventually lose a strong base of consumers. The following are some aspects of marketing mix elements and consumer behavior which could contribute to brand loyalty. in

TYPES OF DIFFRENTIATION
Product differentiation
If the products are differentiated in their characteristics and this difference is perceivable, there are chances of brand loyalty being formed based on satisfaction with greater performance or fit of product with needs. In this case, loyalty is driven by functional or symbolic benefits. Functional benefits would be specific tangible features of the product 11

whereas symbolic benefits would be intangibles such as brand personality and `hedonistic' value of purchase.

Price differentiation
If the price differentiation in the market is perceivable, price-led loyalty might exist in the market. Price-led loyalty is practiced by supermarkets, airline companies and FMCG brands, which come out with frequent sales promotions based on freebies. Alternatively, price might be taken as an indicator of brand quality, and the customer might go in for higher priced options. Price-led loyalty has to be carefully considered with other marketing mix elements and the consumer should never perceive dilution, especially in low-priced bands. Hence, lower prices should create a sense of value through the product offerings as well as through communication.

Branding activity
If the category is organized and there is branding activity, there will be greater loyalty than there would have been if the category were unorganized. Branding activities can differentiate between brands on name, symbol, images and associations. Branding activity in this context refers to creating strong associations which will influence the consumers not only with regard to functional attributes but also with symbolism. Hamam soap's portrayal of its pure ingredients with the child and mother imagery is a good example of one of these dimensions.Branding activities in a broad sense could range from advertising to sales promotion and public relations involving several aspects.

The Indian context


The following were the observations from the literature survey and the examples chosen from the Indian context. The factors indicate that there will be a large segment of consumers for whom price-led loyalty will dominate. Hence there will be strong behavioural loyalty in the segment and only weak attitudinal loyalty. There is thus spurious loyalty in this sector.

Local challengers

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Some of the most successful FMCG brands in 2002 came, not from the stables of a Hindustan Lever and a Colgate, but from obscure regional players such as Kaleesuwari Refineries, Parakh Foods, Anchor Switchboards and Kanpur Detergents.

Aggressive pricing
In the edible oils market, as national players were forced to hike their selling prices in response to rising commodity prices, both Gemini and Gold Winner have used aggressive pricing to woo consumers away from the national brands. Packed tea too, has seen similar trends.

Banking on `power' brands


While the local brands have been adding to their brand portfolios, the market leaders have largely stayed off new product launches. In keeping with its "power" brand strategy, Hindustan Unilever's marketing strategies in 2002 revolved around relaunching established brands such as Lifebuoy, Rin, Surf and Vim. The company phased out brands such as Sunlight in detergents, and Jai in toilet soaps, so as to focus better on its 30 power brands. The strategy appears to have worked, as brands such as Lifebuoy and Rin have moved into a higher growth trajectory after the relaunch.

Streamlining ad spend
While the "power" brand strategy has helped the leading players put their marketing prowess behind their most important brands, it has not really helped them save on ad spend. For most FMCG companies, advertising and promotion spends in 2002 grew faster than their sales. In high penetration categories such as soaps, detergents and toothpastes, marketing efforts of the players revolved around persuading existing consumers to use more of the product or to upgrade to a higher-priced brand.

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CHAPTER- 1.3 ADVERTISING & SALES PROMOTION

I. UNDERSTANDING ADVERTISEMENT II.UNDERSTANDING SALES- PROMOTION III.CREATING DIFFRENTIATION THROUGH ADVERTISEMENT

UNDERSTANDING ADVERTISING
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Whether it is a serial in a regional satellite channel or a One Day International cricket match, there is a non-stop stream of advertisements, which clutter the commercial break. Well-established brands attempt to sustain brand recall while new ones try appealing to prospective consumers to get into their `consideration set. There are ads for children, housewives and youth. With advertising expenditure in the order of Rs. 8000 Crores per annum in the recent times and the proliferation of brands across categories, there is a strong need to consider the effectiveness of these advertisements. The idea is not to cease advertising but to consider how considering decisions would have to be considered with non-advertising alternatives. These non-advertising alternatives may also enable a brand to create and sustain consistent associations, which may be desirable in terms of long-term implications. A contemporary approach that creates a synergy between various aspects of a promotional mix (advertising included) provides a refreshing approach towards marketing communications. There may be several objectives of advertising and a promotional mix could be used in an innovative manner to address each of these objectives depending on the product category and target segment.

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. 15

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.

UNDERSTANDING SALES PROMOTION


Definition: Kotler defines sales promotion as: 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. 7Roger Strang has given a more simplistic definition i.e. sales promotions are short-term incentives to encourage purchase or sales of a product or service.Hence, any forms of incentives (price 16

cut or value added nature) offered for short period either to trade or consumers are considered as sales promotion activities.

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.

Nature of Schemes
With respect to the nature of the schemes, premium (free gifts) were found to be the most frequently used schemes in both premium and popular segment of toilet soap industry. No such scheme was offered by any brand in the economy segment. It could be inferred that as the price of soap in this segment was less than Rs.8, it might not be possible for the companies to offer this type of premium promotion. Secondly, the consumers in this segment were likely to be price sensitive and such a promotion might not be of value to them compared to price offs.

Premium (Free Gift) Offers


Six out of 13 premium offers were a part of the companies own portfolio e.g. on buying 2 Dettol soaps, a Dettol Talc, 18 grams worth Rs.25 was given free. A set of underlying objectives behind the various sales promotion schemes were inferred:

Bonus Packs:
To reward existing loyal customers To off-load inventory at factory and distribution level (to attain push) 17

Bonus pack schemes (Buy one get one free/more for the same price) were used to load the consumers so that they would not buy competitive brand at least for short period.

Premium (Free Gifts):


To reward and retain existing loyal customers and to enhance brand image through interactions/associations. To act as a constant reminder of the brand. To encourage brand switching amongst deal prone consumers through innovative gifts. To induce trial of new products of the company by leveraging on the existing brand and its equity e.g. giving (new) Mysore Sandal Talc free with the purchase of 2 Mysore Sandal soaps.

Price-offs:
The underlying objective could be to offload inventory by pulling customers from popular soap segment, as the size of the premium segment especially the higher end of the premium segment might be very small e.g. Dove (priced at Rs.45 for 100 gm) Rs.10 off. It could be inferred that frequent use of sales promotion activities in premium segment might dilute the brands exclusivity, which could lead to dissatisfaction and disillusionment among the regular users. The highest incentive ratio in case of Fair and Lovely soap was an introductory offer. Such a high incentive again was not likely to generate desired response in terms of trial. Instead the company could have leveraged on its parent brand namely Fair & Lovely Cream which is well entrenched in the market. So with the purchase of Fair & Lovely tube free soap would have given better results in our opinion.

EXAMPLES
COLGATE
Recently, Colgate launched a creative billboard campaign for its toothpaste brand, MaxFresh, where the toothpaste's cooling crystals appeared to be popping out of the hoardings. The idea of the campaign was to communicate the product superiority of MaxFresh - to emphasize that it contains cooling crystals in abundance, and to highlight the fact that while other gel toothpastes freshen breath, only Colgate MaxFresh has cooling crystals that are more effective than regular gels. While the product is not new, the 18

company built interest by adding a short code to the creative. The objective was to call people to action. The ad says, 'SMS MaxFresh to 57007 for a free sample. Here are few strtegies adopted by Colgate max fresh: Colgate Max Fresh Gel- first toothpaste infused with cooling crystals that create whole new dimension of freshness. Saif Ali Khan and Asin are the celebrity brand ambassadors. For the launch of this new gel, interactive media was of foremost importance given the core target audience of young adults. The USP cooling crystals had to be highlighted in all communication. Campaign on: Online: Reaching consumer across various sites. Mobile: Downloads for consumers Extensive online media plan Innovations and large sized banners across portals PPC (SEM): a customized search marketing campaign on Google Keywords ranging from Valentines (topical) to Ipods (prizes) to Saif Ali Khan(brand ambassador) carried the maxfreshclub message & drove traffic to the site. Content Sites across genres Cricket, Movies, Business, News Google partner sites related to bollywood/ greetings/ jokes/ mobile fun were also part of the campaign all building on the premise of contextual relevance. All banners directed traffic to www.media2win.com/maxfresh Mobile integration enabled consumers to not only download ringtones &wallpapers but also play interesting games & get a Fresh Joke of the day by smsing MaxFresh to 58558. Innovative rich media banners across leading sites to ensure high frequency- Rediff, Yahoo, MSN, Siffy etc.

FAIR N LOVELY
TV Campaign 19

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 ones 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 girls 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.

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

Differentiation Through Advertisement


Advertisements convey brand differentiation and this may be important in several categories, which consist of several brands. In FMCG products like tea, coffee and detergents, differentiation awareness can be created by television advertising, but in certain categories there may be a need to demonstrate the effectiveness of brands. Differentiation with which consumers cannot connect may have a negative implication and if a brand connects consumers with its differentiation, it is likely to also differentiate itself in terms of getting identified with the consumer. A detergent or a washing machine, which claims low water consumption has to demonstrate this claim at a retail outlet especially given the fact that the quality of water varies across areas even in a specific geographical region. It is also essential that a good differentiation proposition result in a positive word-of-mouth. In a certain situation, the company may have two offerings in a product-line and there is a need to differentiate them clearly depending on the target segments involved. This is a complex situation where differentiation decides the growth of the brand and the perceived difference between the offerings. An added layer to the complexity is the same brand name 20

being used for the offerings. Fairness cream is a category in which the benefit is the fairness of the complexion. A brand like Fair and Lovely built over the years still has a strong association with the category but under tremendous pressure from competitive brands and the most important criteria which these brands is the herbal touch associated with them. Herbal ingredients are becoming popular with consumers in several categories and personal care in India has a strong tradition of herbal care. Fair and Lovely had to launch its herbal variant (it used the same brand probably because of the brand equity built up over the years). The interesting fact is the differentiation being conveyed by advertising. The original version uses an aspiration route in which the brands ultimate benefit is success through confidence.

The girl in the advertisement becomes a cricket commentator based on the confidence built up by the usage of the product. The herbal variants advertising has a strong focus on the traditional product benefit - facial complexion that appeals to youth. The nature of the models chosen are different and the ultimate brand benefit is conveyed to be different (though any fairness cream is supposed to be associated with fairness). From an explicit benefit associated with the category (fairness) the advertising differentiation carries the variants of the brand to a different plane of differentiation. The differentiation also suggests typical consumer types who may be drawn towards the respective variants. Goodlass Nerolac in its recent advertising campaign for decorative paints, which uses Amitabh Bachchan, has a focus on imagery - joggers, housewives and children who have a positive aatitude towards a celebrity Marketing communication is an area, which offers a high potential to brands to analyze the utility of several promotional inputs.

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CHAPTER -2 LITERATURE REVIEW

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LITERATURE REVIEW
1. Impact of Effective Advertisement on Consumer Attitude Dr. F.R. Alexander Pravin Durai In the article of Dr. Alexander-- Told about a model which exemplifies the attitude or response of a consumer to an advertisement.

2.Techniques of advertising for Fast Moving Consumer Goods (FMCG)


Dr. Archi Mathur- Assistant lecturer, Department of Management Studies, National Law University, Jodhpur Dr. HK Bedi- Professor, Dean, Department of Management Studies, National Law University, Jodhpur

This article shows how an advertiser can use different techniques of advertisements to show FMCG products.

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CHAPTER-3

RESEARCH OBJECTIVES

RESEARCH OBJECTIVES
The main objectives of the study are: 1. To assess current consumer sales promotion schemes in the market 2. To assess how consumers differentiate the products based on advertisements
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3. To get an insight into retailers views regarding the schemes being offered in toilet soap category, and consumer perceptions

CHAPTER 4

RESEARCH METHODOLOGY

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Magazines DefiningReport Research Defining Data Identification: Tools Need Final the Checklist and journals Prim Establishing Retailers Libraries. Analyzing for market Objective Problem Methodology Establishing Used FGD Collectionneed ary Second Consumers Data Various Associations scan Interviews ary Internet Data Data

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RESEARCH METHODOLOGY

Methodology:
In order to address the above objective descriptive study was conducted. The idea was to probe and get deeper insight into advertising and sales promotion scenario in FMCG market and to tap perceptions of retailers and consumers. The major objective of descriptive research is to describe something ---- usually market characteristics or functions .Descriptive research is conducted for the following reasons: 1. To describe the characteristics of relevant groups, such as consumer, organizations, or market areas. 27

2. To estimate the percentage of units in a specified population exhibiting a certain behavior. 3. To determine the perception of the customer. 4. To determine the degree to which marketing variables are associated. 5. To make specific predictions. Descriptive research is preplanned and structured. It is typically based on large representative samples. A formal research design specifies the method for selecting the sources of information and for collecting data from those sources. A descriptive design requires a clear specification of the who, what, when, where, why, and way of the research.. Sample Design I. Population The target population for this market survey included all the retailers ,the youngsters (age group 19 to 24yr). Also this age-group being more experimental and likely to be more deal prone, so their perceptions, preferences would give some insights to companies planning sales promotions targeted at them. II. Sampling Frame: The sampling frame for this study was the list of the college going students, the families of Malviya Nagar and Noida and the store managers/operations managers of the retail

outlets (All the retailers were located in the Noida & Malviya Nagar ) are being covered during the survey. III. Sample Size As the population was limited in this case, a small sample of 50 respondents was taken on my convenience and Six retailers ranging from small kirana store to supermarket were approached. IV. Sampling Technique For the purpose of this survey, technique Convenience sampling was employed as the sample size was small and fixed and the sampling unit was clearly defined. 28

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CHAPTER - 5 DATA COLLECTION

DATA COLLECTION
Questionnaire Field work In depth interview The data which is collected in this project is primary and the report is based more on primary data collected. 30

Methods of data collection


The task of data collection begins after a research problem has been defined and research plan chalked out. While deciding about the method of data collection to be used for the study the researcher should keep in mind two types of data via: primary and secondary. The primary data are those which are collected a fresh and for first time, and thus happens to be original in character, the secondary data, on the other hand , are those which have already been passed through statistical procedure. PRIMARY DATA The sample was taken from south zone of Delhi. The sample size of 50 was taken. Primary Data was collected through structured questionnaires, personalinterviews/discussions in context to the advertising and sales promotion of FMCG products SECONDARY DATA: Secondary Data was collected from Internet, news articles, research paper, journals etc.

CHAPTER- 6
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TYPES OF CONSUMER PROMOTION

An Empirical View of the Different Types of Consumer Promotions in India

Details about Different Types of Promotions


The specific details about the different types of promotions - price offs, free gift offers, sweepstakes, extra product offers, contests, exchange offers and buymore-and-save/get offers - are discussed in the following section. 1. Exchange Offer This promotion is seen mainly in the consumer durable product category. This promotion requires the consumer to exchange an old product for a new one and get some benefit, usually a price reduction. For example, in case of cars, the scheme offers the consumer a price reduction of Rs. 10,000 on the new car in exchange for an old car. In case of household durables, the scheme usually requires the consumer to exchange an old model of a product (e.g. AC, refrigerator, music system, mixer grinder, gas stove) to get a price reduction on the new model. 2. Free Gift Offer 32

This promotion is popular across a range of product categories. It offers the consumer an incentive to purchase in the form of a free product/service. For example, in case of a car purchase, the consumer is offered a free product such as a music system or accessories. Often the product offered free is a complement to the original purchase. This is illustrated by instances of the following types of free gift offers: free pillows with a mattress purchase free toothbrush with toothpaste free shaving blade with shaving gel/foam. In case of detergent powder/cake the free products are related cleaning products such as bleach, washing soap, washing powder, bucket, bath soap, floor cleaner and utensil cleaner. In the skin care segment, the free products are other personal care items such as soap, body lotion, shampoo sachet, shaving cream and toothpaste. In case of food products, the free product comprises of other edible items such as biscuits, coffee, namkeen, salt, chocolate. 3. Sweepstake offer The sweepstake offer gives the consumer a chance to win a large prize through luck. It usually involves a lucky draw or a scratch card based on which the winners are decided. The prizes offered on this promotion can be broadly classified into two types. The first type of prize is a trip to a foreign location e.g. Paris, London, Thailand, Singapore or Malaysia. Many brands offer a trip to the South Africa World Cup as a promotional attraction. The second type of prize are durable products such as Car, Watch, Washing Machine, Television, Refrigerator, DVD, Mobile Phone, Gold Coin. Gold has a major appeal as a prize on the sweepstake promotion across diverse product categories such as soap and personal computer. In some cases, the details of the prize on the sweepstake promotion are not specified and is stated as prizes worth Rs. 50 crores. 4. Buy more and savage This type of promotion requires a consumer to buy two or more products to avail of the promotional advantage. The promotional benefit is usually in the form of money saved as a result of buying two ore more products at the same time. In certain cases, the promotion requires the consumer to buy additional units of the same product to 33

avail

of

the promotional advantage. For example, in case of bath soaps and consumer to buy three bath

detergent cakes, this promotion requires the

soaps/detergent cakes and get one soap or detergent cake free. In case of fruit juice the consumer is required to buy 5 packs of fruit juice and get one pack of fruit juice free. This promotion seems to be popular in categories where the extra units of the product offered on the promotion can be stored for future consumption. 5. Contest offers Contest offers are seen mostly in products targeted at children. In case of soft drinks, the contest offer requires the consumer to answer a question in an ad and get a chance to meet a movie star. In other product categories, the prizes offered on this promotion are similar to those on the sweepstake promotion. The consumer is offered the chance to win a car or a flat or various household durable appliances. 6. Extra Product Offers Most of the extra product promotions (65%) are seen in the FMCG category where the extra units of product serve as additional consumption units for the consumer. There are no extra product promotions seen in the durables product category. In FMCG, the specific products on which the extra product promotion is launched include Talcum Powder, Detergent Cake, Soaps, Fruit Juices and Hair Oil. In case of toothpaste the promotion requires the consumer to buy one toothpaste and get the second toothpaste free. In a talcum powder extra product promotion, the consumer is offered 20% extra in the same pack. This promotion is also seen in the Services sector. In case of fast Food restaurants, the promotion offers a second pizza free along with the original pizza or a slice free along with the original pizza. 7. Other Offers A variety of promotions are seen in the Any Other category. One frequent promotion in the consumer durable category is the 0% finance scheme for purchase of two 34

wheelers, notebook/PCs, refrigerator, music system, television, microwave oven, 2 wheeler. A variant of this promotion is another promotion, which requires an investment of effort rather than money from the consumer. For example, in case of tea, the consumer is required to pay Re. 1 and get a Britannia biscuit pack free along with the tea pack. In case of salt, the consumer is required to collect a newspaper coupon and pay Re. 1 to get a pack of salt. Yet other types of promotions require an investment of both money and effort from the consumer in order to avail of the promotional benefit. For example, a soft drink promotion requires the consumer to collect crowns and put in some money to get a price discount on the soft drink. In case of ice cream the consumer is required to collect three ice cream wrappers to get a scratch card which gives him the opportunity to win lakhs of prizes. In case of chocolates, the promotion requires a consumer to exchange empty chocolate wrappers to get movie tickets or bunny stickers free.

CHAPTER-7
ANALYSIS & DISCUSSION

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I.

Data Analysis & Dicussion.

Question-1 - Whose advertisements/campaigns do you like the most?

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Customers mainly like the beverages advertisement more (36%) like soft drinks ad, juices, Chips etc and these product are used by everybody but like detergent and cosmetics advertisement are related to girls & ladies who are mainly the user of these products like 24% people like cosmetics & 22% of the people like Detergent adv.

Question2 - What do you find interesting in' an advertisement?

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Now all the people like comedy either in the movie or in the advertisement. Anything which make the person happy that attracts most. So the comedy in the advertisement mainly like by the customer. As out of 100% mainly 42% of the people like comedy and 26% like Emotional, humour(16%), Twister(14%).

Question 3 38

Which of the following medium do you use for entertainment, work, and informationgathering etc for different purposes?

The most important media for the advertisement is TV because most of the people are watching TV for entertainment and for Information gathering. Next 26% of the people like youngsters prefer Internet for entertainment and work. 18% of the people prefer Newspaper and 12% of the people prefer Radio. As radio is not listen by most of the people it is mainly used at the time of traveling and Mobile is also a good medium but in case of advertisement , the mobile advertisement are not much effective as compared to TV and Internet.

Question 4 Does Advertisement effect your decision to purchase a particular product?

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Yes according to the survey its proved that advertisement effect the decision to purchase a product like 36% of the people said that it is very effective and 34%of the people said that effective and only 2% of the people said that advertisement are least effective. customer which help the people to purchase the product. Yes advertisements attract the customer and provide the relevant information about the

Question 5
(Advertisement help in building brand recall) when you think of Fairness Creams which Brand comes to your mind?

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Advertisements helps in building the brand recall in the minds of the customer so that when the customer thinks about fairness cream or any other product then the brand which has number of advertisement have more impact in the minds of the customer like 50% of the customer think that fair n lovely has high brand recall as compared to 16% fairever and 20% garnier.

Question -6
When you think of Detergents, which Brand comes to your mind?

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According to the survey done, it is found that when the customer think about the detergent then the one and only brand which comes into the minds of the customer is surf excel. Hence surf excel has high brand recall as compared to (16%) Rin and (26%) Tide.

Question 7
Which type of promotional activity would you like to prefer for Soaps or Detergents?

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Customer want not only advertisement but they want promotional offers in everything which also attract them. Like in case of soaps /detergent out of 100% , 30% of the people want the buy 3 get 1 scheme, 28% want price off, and 26% want contest offer.

Question 8 - Are you able to relate yourself with the advertisement shown on TV?

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The advertisement shown on TV , 56% of the people said that they cannot relate yourself with the advertisement because the advertisement sometime misleading or in real life it is not effective. And only 44% of the people said that yes they can relate themselves with the advertisement as the advertisement satisfy their needs and want.

Question 9 Which promotional techniques would you consider most effective? 44

According to the customer, out of 100%, 20% of the people want price off, 24% want free gifts, 18% of the people want buy more and savage and 14% of the people want extra product offer. Hence everybody has their own perception about the promotional offer.

Question 10 Which of the feature of the advertisement attracts you the most ? 45

Out of 50 people, only 13 people said that they like the feature of slogan/ tag line, 11 people like the celebrity feature of the advertisement and 10 people like the colour/theme feature of the advertisement.

CHAPTER-8
RECOMMENDATIONS & CONCLUSION

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I.RECOMMENDATIONS II.CONCLUSION

I.RECOMMENDATIONS
The word "Recommendation" is self-explanatory. It speaks about the valuable suggestions. For eg. If it is asked to suggest on what the company should do to improve it from its present position? We find lots of suggestions floating. Some of them make sense and some are to be clipped out. 1. Companies have to increase the awareness level in buyers through TV advertisement. An advertisement since it is one of the main sources of awareness and securing Information. 2: Effective advertising is necessary to confirm the public about the product at the right time through the right medium. 3. Although product benefits can be shown most effectively by TV. It should not mislead the consumers. The advertisement is judged by its impact, and by its acceptance by the consumers. What it promises must be there in the advertisement. 4. Identifying the right Celebrities for different products and the degree of influence these celebrities have in different stages of decision making. 47

The ad agencies should use simple ads to convey the message of the brand. It should also be creative and focus on 1 or 2 points. Innovative methods should be used to make advertising effective.

Importance of Claim:
The most important factor determining the effectiveness of an advertisement is the importance / of claim made in it, Many advertisements make important claims. But these claims should be important for the consumer too. If a buyer gives importance for quality, there is no point in speaking about the cheap price, similarly if cheap price is important the advertisement should highlight only that. Now a days advertisement agencies concentrate on USP, i.e., unique selling proposition. Each advertisement must make a strong factual claim to pull the consumer into the store to buy.

Believable
An advertisement must be believable. This can be incorporated in many ways. One way is to quote facts and figures about tests proving your claim. However, negatively speaking, the advertisements should not mention anything unbelievable. S0Q1etimes advertisement given in prestigious magazines is believed by-the readers.

Uniqueness
The advertisement' itself must have something unique about it.Uniqueness draws attention. According to the four fold principle of AIDA (Attention, Interest, Desire and Actionbuying), any effective advertisement should draw the attention of the customer. It should be followed by proper claims, and believability. Typically advertisements whose major objective is to gain brand recognition and acceptance rather than gaining conviction or buying action rely on uniqueness.

Repetition
Repetition is one of the key concepts of advertising. It is better to have a long series of small advertisement than one extremely long advertisement. Repetition is a basic principle of memory. Naturally, the more times an advertisement is run, the more likely it is that any 48

person has seen one of the advertisements recently. Repetition and regency are usually closely related. In fact, an advertisement is better read upon repeating, certainly repetition lowers advertisement costs. Companies that are able to spot trends early and those that are committed to continuous innovation and those that Endeavour to delight the consumer by meeting her changing needs will lead and prosper in the future. Product superiority married with a favorable price-value equation will form the basis of winning initiatives in the coming years. Concentrating spends on a smaller number of brands that are critical to the business and which enjoy considerable consumer advantage. Consistently supporting those facing highest competitive pressure with above the line spends while sustaining momentum on stable brands with tactical activities in key markets to get incremental sales.

II.CONCLUSION
Advertisement, the foregoing discussion show, is a sharp double edged weapon. When the claims of an advertisement correspond with the features of a product purchased as a consequence of such advertisement, the advertisement is bound to create a positive attitude among the Consumers in the long run. On the other hand, when the features of the product purchased do not corroborate the claims made in advertisement, those advertisements are sure to create a negative attitude among the consumers. It is therefore essentials that an advertisement aims to create faith and goodwill in the minds of consumer about the product featured by conforming to the core principles of believability, uniqueness, reputation and reasonable claims. Advertising serves many generic purposes, but for specific categories like FMCG, the involvement of all stakeholders is vital to the success of an advertising strategy. Innovation and creativity are pillars of great advertising strategies, but equally important are the content and delivery of the advertisement. All compels the advertisers to innovate and develop new techniques to attract the customers. We can say that the advertisers use these different means of advertising in order to lure the customers to buy their products. It is not necessary to use only one aspect of advertising in an advertisement. Instead, multiple aspects of advertising are being used to 49

make sure that the consumers buy the respective company's product.. Briefly, we can say that the different aspects of advertising are quite beneficial for promoting a product. Every advertisement has some multiplier effect which gives a greater benefit with respect to/ the amount spent. Recall of an advertisement varies from individual to individual, and a company may calculate its advertisement multiplier for measuring its advertisement effectiveness. An attempt is made to identify the level of awareness among the respondents towards TV advertising. From the study it is inferred that TV commercials have considerable int1uence on the Buying decision as well as Brand preference of the consumers. The celebrity endorsement is also considered to be an important part of advertisements to make them more creative and innovative in their reach to the consumers and their attempt to capture their attention. Following observations are made after making an analysis of data collected from various respondents and from general discussions with them: 1) TV ads are considered as a most important source of information among the respondents. This highlights the role the TV commercials play in moulding the buyer behavior. Thus, purchase decision of the people is definitely impacted by advertisements. 2) Almost half of the segment of respondents likes to watch ads regularly. This means TV outperforms other Medias as far as effective presentation is concerned. It is capable of attracting attention immediately. 3) A significant portion of the people prefers to watch ads because of the ' informative content. This is because of evocation of experience" i.e TV advertising easily stimulates the experience of using and owning the product. : 4) Brand preference is considered to be one of the prerequisite for brand salience-to create the Top of the Mind Brand Awareness. TV commercials go a long way in achieving this as also indicated by the study. Advertising works by reinforcing Brand preference for mature brands.

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5) A small segment of the respondents think that the advertisements are totally true or reliable. All the rest of them think that they are either sometimes deceptive or mostly deceptive. 6) Major chunk of the respondents feel that celebrities 'presence in the ads is highly required. They feel models are familiar and their presence is reassuring. Moreover, because of the high positive image of the celebrities consumers feel the genuineness of the product/ brand. Celebrity endorsement is generally preferred for such products as soft drinks, cars, suitings, premium range products and luxurious items. 7) More than half of the consumers are not able to relate themselves with the lifestyle shown in the TV ads. This is because the people are not able to conform the exaggeration shown in the respect of product benefits with their own picture of reality 8) When asked to recall an advertisement in respect of any Fmcg, almost all the respondents were able to recall only one or two advertisements or the tag lines of their favorite brands. They could also immediately relate the celebrities they have seen in the respective ads. 9) TV advertising provides a unique blend of sight, colour, movement, sound, repetition and presentation of the products. This helps TV commercials to gain advantage over other medias. 10) Although informative content is more liked by the respondents but with the advent of too many satellite TV channels, the use of celebrities has become an important issue for the advertiser. This is to make the consumer more conscious and attract towards the product. 11) Consumer need somewhat extra benefit as compared to the other brands and they want the offers and scheme should be more to attract the customers. Today, creating a different differentiation is becoming difficult and problematic. Product differentiation should be strong enough to create a wide gap between two brands. If a differentiation technique does not create a wide gap between the two brands, then the customer is not able to differentiate the same leading to less brand loyalty. This is what is happening in FMGC sector especially in soap industry, where the customer is not able to 51

differentiate between two soaps. Lux, Cinthol appears to be same which was not the case earlier. As the product differentiation technique does not create a wider gap between one brand and the other, customer loyalty is getting eroded.

ANNEXURE
QUESTIONNAIRE, 1. Whose advertisements/campaigns do you like the most? a) Beverages b) Cosmetics c) Detergent 2. What do u find interesting in' an advertisement? a) Humour b) Comedy d) Food Items

c) Emotional

d) twister

3. Does Advertisement effect your decision to purchase a particular product. 1 Very Effective 2 3 4 5 Least Effective

4. Which promotional techniques would you consider most effective? a) Price off b) Exchange Offer c) Sweepstakes d) Buy more & savage e) Free Gift Offer f) Contests Offer g) Extra product Offer 5. Which of the feature of the advertisement attracts you the most ? a) Slogan/Tag line b) Colour/Theme c) Story d) Spokes person/celebrity e) Music/Jingles 6. Which of the following medium do you use for entertainment, work, and information-gathering etc for different purposes? a) TV b) Radio c) Print d) Internet e) Mobile

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7. (Advertisement help in building brand recall) when you think of Fairness Creams which Brand comes to your mind? a) Fair n Lovely b) Garnier c) Fairever d) Fairone

8. When you think of Detergents, which Brand comes to your mind? a) Tide b) Rin c) Surf excel d) Ariel 9. Which type of promotional activity would you like to prefer for Soaps or Detergents? a) price off b) Buy 3 get 1 c) contest Offer d) free gift 10.On a scale of 1 to 5, Rate the quality of advertisement of the following cola drinks: Pepsi Coca cola Thums up Mirinda Limca 11 .On a scale of 1 to 5 , rate the quality of advertisement of the following soaps? Dove Lux Cinthol Pears Iiril 12. Are you able to relate yourself with the advertisement shown on TV? a) Yes b) No 13. Which advertisement did u see recently and like the most? ___________________________________________

Name: ________________________ Address: ______________________________ Occupation: __________ Sex: Male ( ) Female ( ) Age: _______________

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