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Social Marketing

Submitted in partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION Session- 2011-13

Submitted ToMs. Riya Sharma MAIT

Submitted ByBaljit singh Geet Goel Kavita Nikhita Sood Reetika Gupta Sapan Suri Sonali Puri Sudhanshu Kapoor Vibhor Jain

MAHARAJA AGRESEN INSTITUTE OF TECHNOLOGY

(ISO 9001:2008 Certified and AICTE NBA Accredited)
PSP Area, Plot No. 1, Sector-22, Rohini, Delhi-10086 Ph: 011- 27582283

Website: http://www.mait.ac.in
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Acknowledgement

The present report is based on “Social Marketing”. We owe great thanks to all the people who helped and supported us during the execution of this project. Our deep sense of gratitude to Ms. RIYA , , for her support and guidance. We thank her for guiding and correcting various documents with great attention and care. She has taken pains to go through the project and provide her valuable suggestions at every step. We express our thanks to the Director General, Dr. N.K. Kakkar, MAHARAJA AGRASEN INSTITUTE OF TECHNOLOGY, Rohini for extending his support.

SUBMITTED BY:
Baljit singh Geet Goel Kavita Nikhita Sood Reetika Gupta Sapan Suri Sonali Puri Sudhanshu Kapoor Vibhor Jain

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EXECUTIVE SUMMARY
This report is an attempt to study and understand how social marketing changes the consumer buying behaviour & how ITC is able to survive in the market by leaving an impression on consumer’s minds by contributing towards the society. Questions like: Why people are buying the products? What all the things which influences them to buy? Etc gives a clear view of impact of SOCIAL MARKETING ON CONSUMER BEHAVIOUR. We used a sample size of 90 with a set of few questions about knowing the company ITC, social initiatives taken by the company, changing image of ITC and TATA and HUL as the main competitors of ITC. Social Marketing is basically for individual or societal benefit (rather than corporate benefit or profit). But at the end, we concluded through our study that a majority of consumers believe that social marketing is a strategy to promote their brand value and image and to build a good will in the market. We also found that majority of the consumers are not willing to pay extra cost for this step taken y the company. Moreover, a large population size believe that Other companies like TATA and HUL are excelling better in the field of social marketing than ITC.

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TABLE OF CONTENTS SECTION 1: INTRODUCTION Introduction to social marketing Introduction to ITC Social Marketing by ITC SECTION 2: OBJECTIVE Objective SECTION 3: RESEARCH METHODOLOGY Research Methodology SECTION 4: ANALYSIS Analysis SECTION 5: BENCHMARK Awards SECTION 6: ANNEXURES Questionnaire SECTION 7: BIBLIOGRAPHY Bibliography 32 29 26 20 17 13 6 9 10 SOCIAL MARKETING Page 4 .

SECTION 1 INTRODUCTION SOCIAL MARKETING Page 5 .

Social marketing is basically applying commercial marketing principles to health and human service programs. Everything you do should be in the service of behaviour change.  A voluntary behaviour change  An exchange  Individual or societal benefit Misconception about Social Marketing  Not social advertising  Not promotion or media outreach only  Not about coercing behaviours(through force or punishment) SOCIAL MARKETING Page 6 . Few Examples:      Speed thrills but kills. using marketing principles for the purpose of societal benefit rather than commercial profit. Bottom Line: Behaviour change for societal benefit—not profit. Save Girl Child Save Water Say no to Drugs Fuel Prices drop by 50% for Car Poolers only! Social Marketing Requires:  A ―customer‖ focused approach.Social Marketing Introduction Process for influencing human behaviour on a large scale.

price. broad-based. A consumer orientation to realize organizational (social) goals 2. with the publication of "Social Marketing: An Approach to Planned Social Change" in the Journal of Marketing by marketing experts Philip Kotler and Gerald Zaltman. History of Social Marketing Social marketing began as a formal discipline in 1971. They are: 1. Craig Lefebvre and June Flora introduced social marketing to the public health community in 1988. where a persuasion-based approach was favoured over a legislative approach. Research in audience analysis and segmentation strategies 4. implementation and feedback functions Speaking of what they termed "social change campaigns". An emphasis on the voluntary exchanges of goods and services between providers and consumers 3. An analysis of distribution (or communication) channels 6. A process tracking system with both integrative and control functions 8. and outlined eight essential components of social marketing that still hold today. This does not mean that commercial marketers can not contribute to achievement of social good. A management process that involves problem analysis. Kotler and Ned Roberto introduced the subject by writing. The use of formative research in product and message design and the pretesting of these materials 5. where it has been most widely used and explored. social marketing had already been used as a tool for birth control in India. They noted that there was a need for "large scale. earlier. planning. behaviour change focused programs" to improve public health (the community wide prevention of cardiovascular diseases in their respective projects). Use of the marketing mix—utilizing and blending product. while in "commercial marketing" the aim is primarily "financial".The primary aim of social marketing is "social good". However. place and promotion characteristics in intervention planning and implementation 7. "A social change campaign is an SOCIAL MARKETING Page 7 .

or abandon certain ideas. Ned Roberto and Nancy Lee." Their 1989 text was updated in 2002 by Philip Kotler. However there has been increasing efforts to ensure social marketing goes "upstream" and is used much more strategically to inform both "policy formulation" and "strategy development". In 2005. modify. University of Stirling was the first university to open a dedicated research institute to Social Marketing. attitudes. using it to achieve specific behavioural goals in relation to different audiences and topics. Here the focus is less on specific audience and topic work but uses strong customer understanding and insight to inform and guide effective policy and strategy development SOCIAL MARKETING Page 8 . Middlesex University became the first university to offer a specialized postgraduate programme in Health & Social Marketing. while in 2007. In recent years there has been an important development to distinguish between "strategic social marketing" and "operational social marketing". Much of the literature and case examples focus on operational social marketing.organized effort conducted by one group (the change agent) which attempts to persuade others (the target adopters) to accept. practices or behaviour.

 ITC employs over 26. Stationery. and shares ancestry with Imperial Tobacco of the United Kingdom.T.000 shareholders. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.  ITC is one of the country's biggest foreign exchange earners (US $ 3.  It started off as the Imperial Tobacco Company. Safety Matches and other FMCG products. Paperboards & Specialty Papers. and was renamed to Indian Tobacco Company in 1970 and then to I.C. ITC ranks among India's `10 Most Valuable (Company) Brands'. Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine.000 people at more than 60 locations across India & more than 4. 1910). Packaging.  ITC has a diversified presence in Cigarettes. Agri-Business.2 billion in the last decade). Personal Care. Information Technology. Packaged Foods & Confectionery. SOCIAL MARKETING Page 9 . West Bengal. Hotels. Limited in 1974.  ITC's annual turnover stood at $7 billion and market capitalization of over $33 billion in 2010.Introduction about ITC  ITC is an Indian public conglomerate company headquartered in Kolkata.23. Branded Apparel. in a study conducted by Brand Finance and published by the Economic Times.  ITC is rated among the World's Best Big Companies. but it is now fully independent. among India's Most Respected Companies by BusinessWorld and among India's Most Valuable Companies by Business Today. India(Aug 24.

Social Initiatives by ITC: 1) e-Choupal The unique e-Choupal model creates a significant two-way multidimensional channel which can efficiently carry products and services into and out of rural India.000 hectares of wasteland under social forestry benefiting more than 16.000 poor households in 466 villages.000 villages and serving over 4 million farmers. 2). ITC’s social forestry programme simultaneously addresses the livelihood problems of SOCIAL MARKETING Page 10 . Social & farm Forestry ITC has helped to bring nearly 13. while recovering the associated costs through agrisourcing led efficiencies. This initiative now comprises about 6500 installations covering nearly 40.

making it possible to live off the land round the year 4). and reach out beyond local markets to sell at better margins. SOCIAL MARKETING Page 11 . pool knowledge and resources. Watershed Development ITC’s watershed initiatives have led to an improvement in soil and moisture regimes – there is more land under irrigation. Agricultural Development ITC offers facilitation to farmers to form agri-business societies. improve productivity and quality. water tables have risen and farmers can harvest more than one crop.marginal farmers and the ecological imperative of regenerating biomass and nurturing depleted soils 3).

6). Women Empowerment The confidence and skills generated among women by forming credit groups and managing businesses become assets to their communities. SOCIAL MARKETING Page 12 . awayfrom dependence on agriculture and local markets.5). Livestock Development The milk marketing co-operatives represent exemplary change in rural enterprise.

The awareness of entitlements like education and health grows. SOCIAL MARKETING Page 13 . ITC made its entry into the stationery business in 2002 with its premium range of notebooks. along with a sense of the community’s responsibility. with Classmate addressing the needs of school goers and Paperkraft targeted towards college students and executives. followed in the year 2003 with the more popular range to augment its offering. Primary Education School going becomes an empowering process for the child and the community. 8).7). the Company commenced marketing Agarbattis (incense sticks) sourced from small-scale and cottage units in 2003. ITC's stationery Brands are marketed as "Classmate" and "Paperkraft". Small-Scale and Cottage Units As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector.

SECTION 2 OBJECTIVE SOCIAL MARKETING Page 14 .

 Evaluating how social marketing influence the consumer buying behaviour.  Practical knowledge and understanding to about the topic.  Why people are buying the products?  What all the things which influences them to buy?  Whether or not ITC is able to change its impression from being a company mainly known for Cigarette business earlier to a public conglomerate? Further in this report we are covering:  Various aspects of Social marketing.  Social marketing practices exercised by ITC. SOCIAL MARKETING Page 15 .OBJECTIVE The primary objective of this study is to understand how social marketing changes the consumer buying behavior & to systematically explore the determinants responsible for the competitive advantage of ITC Limited and how ITC is able to survive in the market by leaving an impression on consumer’s minds by contributing towards the society.

SECTION 3 RESEARCH METHEDOLOGY SOCIAL MARKETING Page 16 .

thus the name convenience. the sample is selected because they are convenient. It has the goal of formulating problems more precisely. eliminating impractical ideas. As the name implies. and formulating hypothesis.In this method Researcher have the freedom to choose whomever they find. Sampling Technique Used: This research has used convenience sampling technique. clarifying concepts. Research Design The research design of this project is exploratory. SOCIAL MARKETING Page 17 .Research Methodology Universe:. Example includes informal pools of friends and neighbors or people responding to a newspaper’s invitation for readers to state thei r position on some public issue. . Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. Population: The main emphasis of the study was on the general public. The people within the age group of 18 years to 60 years were the universe. both customers and non customers of the products of ITC LTD. Selection of Sample Size: For the survey. It is a non-probability sample. a sample size of 90 has been taken into consideration. gaining insight. gathering explanations. This is the least reliable design but normally the cheapest and easiest to conduct .

Due to the following unavoidable and uncontrollable factors. Accuracy: It is difficult to know if all the respondents gave accurate information. Some of the problems faced while conducting the survey are as follows:1. Therefore. Further. So in the present study questions were arranged and interconnected logically. It was difficult to find respondents as they were busy in their schedule. The success of the questionnaire method in collecting the information depends largely on proper drafting. The structured questionnaire will reduce both interviewers and interpreters bias. which handicapped the research. the result might not be accurate. the study had to be carried out based on the availability of respondents. Time Constraints: The time stipulated for the project to be completed is less and thus there are chances that some information might have been left out. 2. some respondents tend to give misleading information. SOCIAL MARKETING Page 18 .Instrument for data collection The main statistical tool used for the collection and analyses of data in this project is: Questionnaire. Sample size: Due to time constraints the sample size was relatively small and would definitely have been more representative if I had collected information from more respondents. coding and analysis was done for each question’s response to reach into findings. suggestions and finally to the conclusion about the topic. 3. and collection of data was very difficult. however due care is taken to include all the relevant information needed. 4. Limitations of study: Although the study was carried out with extreme enthusiasm and careful planning there are several limitations. because it is an important method of data collection. The questionnaires were used as an instrumentation technique.

SECTION 4 DATA COLLECTION AND ANALYSIS SOCIAL MARKETING Page 19 .

we can interpret that ITC is very popular company and is known among the consumers. According to our survey. Therefore. 79% consumers knew about the social initiatives taken by the company. Rest were unaware of it. SOCIAL MARKETING Page 20 .ANALYSIS As per observation. 92% of the consumers were aware of the company and 8% were not aware of it.

Among the 79% consumers who knew about the social initiatives of the company. 12% consumers knew all the social marketing done by ITC. Very few consumers were aware of social & farm forestry. or to make a society avoid goods which have negative impact and thus promote society's well being as a whole. SOCIAL MARKETING Page 21 . around 43% consumers are aware of e-choupal and primary education. Above all this.Social marketing can be applied to promote merit goods.Social Marketing applies the principles of marketing to address social problems by influencing behavior change. watershed development and Livestock Development.

SOCIAL MARKETING Page 22 . Therefore the company has also need to think about these consumers as 36% is not a small population. And 36% was not in favour of paying extra money.In our survey we found that 57% consumers were ready to pay extra cost for the product associated with social initiative. But we found that only 7% consumers believe that it is for benefit of the society whereas 61% consumers consider it as both a promotional strategies and benefiting the society. Social marketing is basically for individual or societal benefit (rather than corporate benefit or profit). Moreover 21% think it’s only a promotional strategy.

Therefore a majority of consumers believe that social marketing is a strategy to promote their brand value and image and to build a good will in the market. According to our survey.Whereas 40% consumers do not have any idea about this. 74% consumers think that ITC Company has changed their impression from being only a tobacco company to public conglomerate. 51% consumers believe that other companies do better in the field of social marketing as compared to ITC . This means ITC has been so far been successful in changing its image and has put a great impact on consumers. SOCIAL MARKETING Page 23 .

44% believes that TATA has set a benchmark in this field and excelling good. so ITC need to be aware of its competitors as social marketing is a great tool to attract consumer. HUL. Remaining consumers also voted for companies like PepsiCo. Of 51% consumers who think that other companies are doing better in social marketing.Since a large size of population thinks other companies are doing better. SOCIAL MARKETING Page 24 . and Procter and Gamble. the main competitors of ITC in the field of social marketing are TATA and HUL. Therefore.

SECTION 5 BENCHMARK SOCIAL MARKETING Page 25 .

higher incomes.Further. The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture. ITC’s e-Choupal initiative won the Inaugural World Business Award at Marrakesh (2004). ITC was the first Indian company and second in the world to win the Development Gateway Award for its trail-blazing e-Choupal initiative (2005). has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its customers around the world on a sustainable basis. among others. the worldwide business award recognising companies who have made significant efforts to create sustainable Chamber of Commerce (ICC) and the HRH Prince of Wales livelihood opportunities and enduring wealth in developing countries. ITC won the prestigious Corporate Social Responsibility Award from The Energy and Resources Institute (TERI) for its e-Choupal initiative (2005). characterised by fragmented farms.Awards. The award has been instituted SOCIAL MARKETING Page 26 . a growth in rural incomes will also unleash the latent demand for industrial goods so necessary for the continued growth of the Indian economy. ITC e-Choupal won the Stockholm Challenge Award (2006). weak infrastructure and the involvement of numerous intermediaries. Accolades and Best Practices by ITC ITC's Agri Business Division. one of India's largest exporters of agricultural commodities. enlarged capacity for farmer risk management. ITC has won the inaugural 'World Business Award'. larger investments and higher quality and productivity. This will create another virtuous cycle propelling the economy into a higher growth trajectory. Setting up an another benchmark. ITC has known for his work towards helping and play major role in development of the country. ITC won numerous awards for taking such initiative like E-Choupal namely. Such a market-led business model can enhance the competitiveness of Indian agriculture and trigger a virtuous cycle of higher productivity.

SOCIAL MARKETING Page 27 . jointly by the United Nations Development Programme (UNDP). To recognize this effort towards the nation ITC was awards by FICCI outstanding vision corporate Triple Impact Award which was presented by the Prime Minister (2008). International ITC. an global conglomerate also helped nation to build its natural. economic and social capital.International Business Leaders Forum (IBLF).

SECTION 6 ANNEXURE SOCIAL MARKETING Page 28 .

which of the following are known by you?          e-choupal Agri-business Social & Farm forestry Watershed development Women empowerment Primary education Livestock development All of the above None of these Q4). Are you aware of the social initiative taken by the company? Yes No Q3). If yes. Are you willing to pay extra cost for the product associated with social marketing? Yes No SOCIAL MARKETING Page 29 .SOCIAL MARKETING QUESTIONNAIRE Tick the relevant answer (can be more than one also). NAME: ___________________________________________________ PROFESSION: _____________________________________________ AGE: ______________________________________________________ Q1). Are you aware of ITC? Yes No Q2).

which company you think is performing better in social marketing?      TATA HUL Proctor & gamble PepsiCo Any other SOCIAL MARKETING Page 30 . In your opinion. In your opinion. If yes. Do you think ITC has changed its impression from being a Tobacco company to public conglomerate?  Yes  No  Can’t say Q7). is any other company doing better in social marketing?  Yes  No  Can’t say Q8). Social Marketing done by ITC Company is     A promotional strategy Benefiting the society Both of them None of these Q6).Q5).

SECTION 7 BIBLIOGRAPHY SOCIAL MARKETING Page 31 .

Nancy Marmolejo and Kerry LaCoste  The Social Media Survival Guide: Strategies.gov/dnpa/socialmarketing www. Malhotra and Satyabhusan Das. Marketing Research by naresh K. and Tools for Succeeding in the Social Web – Deltina Hay Links :       en.com www.wikipedia.com › Businesses › Agri Business • SOCIAL MARKETING Page 32 .com en. The Old Rules of Marketing Are Dead – Timothy Pearson 50 Ways to Better Social Media: Making Solid Connections That Create Dynamic  Opportunities – Melissa Giovagnoli Wilson.org/wiki/ITC_Limited www.facebook.itcportal.org/wiki/Social_marketing www.itcportal.wikipedia.BIBLIOGRAPHY Books :     Marketing Management by Philip Kotler and Kelvin Lane keller.cdc. Tactics.social-marketing.com/ITCMobileMarketingFresno?sk=wall filter=2 www.