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Declaration Certificate from Faculty guide Acknowledgement
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Chapter Name Introduction Literature Review Problem Statement Methodology Results & Discussions Suggestions & Conclusion
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Integrated Marketing Communication In the beginning of the 1990’s, when mass advertising had slowly being replaced by target market advertising, the ways of being more effective in order to reach and persuade the target audience had also being rethought. As more and more companies applied the lessons of market segmentation and product differentiation, they target smaller parts of the overall market. As companies speak to consumers with an increasing number of sources, a company’s communication could be more efficient. Companies felt that simply placing a message in a specific media was not enough to give the desired result by the customers. There should be some form of strategic synergy that could put together the message spread out in different media and used by the different communications tools. During the 1980s, many companies came to see the need for more of a strategic integration of the promotional tools. Many agencies responded to that call for integration among the various promotional tools by acquiring PR, sales promotion, and direct marketing companies and touting themselves as IMC agencies that offer one-stop shopping for all their clients. Their main idea was to develop marketing and communication program that the activities defined strategically in the plan would work direct and synergic to achieve the company’s marketing objective using the same message. As the result of this new think appeared the Integrated Marketing and Communication plan (IMC) that has been discussed and used by various authors, researchers and marketing and advertising people. According to Schultz professor at Northwestern University (1993) “Integrated Marketing Communication –IMC, is the process of developing and implementing various forms of persuasive communication programs with customers and prospects over time”. He, also, states, “the goal of IMC is to influence or directly affect the behavior of the selected communication audience. IMC considers all sources of brand or company contacts which a company or prospect has with the product or service as potential delivery channels for the future messages. 2
IMC, makes use of all forms of communication which are relevant to the customer and prospects, and to which they might be receptive.” The American Association of Advertising Agencies defines Integrated Marketing
Communications as “the concept of marketing communication planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines (general advertising, direct response, sales promotion, and public relations) and combines these disciplines to provide clarity, consistency, and maximum communication impact.” The two definitions mentioned above deals with the IMC in the way that the marketing communication plan must work synergically in order to reach efficiently the target public. However, the Schultz definition, once deals with the entire company’s audience (retailers, suppliers, personal selling, etc.), requires more knowledge by the company about all audience, while the 4A’s concentrates more in the impact that the message in the final consumer. As the IMC suggests, the marketing and communication plan must work in a synchronized way. Internet which has been growing tremendously and has been used largely by the companies to do business, to sell and advertising its products, to maintain relationship with its target public, etc. has come up as a important part of the IMC. If we analyze the IMC Schultz approach (broad picture), the Internet is extremely useful for all marketing and communication activities because throughout the Internet, as mentioned above, a company can do business, advertise its products, maintain contacts with the customer, do PR and so on. So, if a company wants to do efficient IMC program, the Internet is an essential media for the success of it today. One cannot use the Internet as main point of strategy but use advertising on the Internet as part of the IMC.
REASONS FOR ACCEPTING IMC In the days gone by, the marketing world belonged to advertising. Advertising had a big effect, because it was easy to generate high reach by advertising in popular media vehicles. In recent years, this picture considerably changed. Media has fragmented, making it very difficult to achieve high reach. The basic trends that are challenging the ways many companies conduct business today are: Technology and the Internet Technology embraces every part of our lives making our world faster, smarter and more mobile than ever. Amidst the explosion of online businesses, the Internet has made online business models and offerings transparent. Such transparency has two key results. First, competitive advantages historically enjoyed by companies have diminished. Products and technologies that were once unique can be now duplicated within months, while services can be copied within days or even hours. Second, because of a Web site, there is a single source of company's information for all, message inconsistencies are more easily discovered. If outgoing messages do not align with product or service offerings, a company's brand is jeopardized. Just as Internet technology has leveled the competitive playing field by providing a window into the competition's strategy, technology has also placed the power of information in the customer's hands. Today, customers are more knowledgeable and demanding than ever of marketplace conditions. They are able to research product attributes, investigate competitors' offerings and compare prices. While technology gives increased power to competitors and consumers, the same technology also enables the principles of IMC to operate on new levels. Mechanisms for two-way communication are more efficient and fluid than ever. By using technology to support IMC concepts, companies have ability to exceed customer expectations and outsmart the competition. Globalization As transaction capabilities are advanced by technology, the geographic boundaries of trade are beginning to disappear. Additionally, global trade agreements between countries have created a windfall of economic opportunity. Global mergers and acquisitions are developing every day. Global networks, both technological and organizational, are connecting organizations in all parts of the world. Driven by the first truly global companies and supported by trade agreements, globalization is here to stay. This high degree of consolidation and global 4
In these conditions. The way of reaching these goals is called integrated marketing communications. As different cultures. 5 . The leading managers know that. cinema etc. rather than hard goods produced or manufactured. newspapers. Coca-Cola. ideas. That's why the value of the brand name is a key factor for marketing success. magazines. The usage of different communication tools has to be planned as an integrated campaign. and they try to reach two "conflicting" goals: first. billboard posters. and McDonald's have capitalized market values that correspond with their intangible capital. Companies such as Microsoft. sales promotion and public relations tools. today's marketplace puts a much higher value on intangible assets. But companies cannot ignore unique attributes of different cultures. television. to build a strong brand's image. companies must attempt to localize globally. Importance of brand's image In contrast to business in the past. to achieve considerable sales' volume (usually by sales promotion) and second. The four main elements of the promotional mix are: Advertising It’s a paid form of non-personal communication of ideas or products in the "prime media": i. personal selling. currencies and economic ideals converge. IMC tools: A company’s total marketing communications programme is called the "promotional mix" and consists of a blend of advertising. Analysts suggest that in order to globalize. The significance of brand equity is rising because a high level of brand equity means a high level of loyal customers.connectivity creates a need for global communication strategies. radio. Advertising is intended to persuade and to inform. it is necessary that the strategies behind global organizations are consistent around the world and across the board. the task of marketing communications is to carry understandable and harmonic messages.e.
tell customers about a new product (b) To persuade . Publicity It is the communication of a product. but will always ultimately end with an attempt to "close the sale". The amount spent on advertising should be relevant to the potential sales impact of the campaign.Personal Selling It is the oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship initially with the potential buyer. encourage customers to switch to a different brand (c) To remind . Sales Promotion It is the means of providing incentives to customers or to the distribution channel to stimulate demand for a product.e. Advertising objectives fall into three main categories: (a) To inform .g. Advertising: Stage 1: Set Advertising Objectives An advertising objective is a specific communication task to be achieved with a specific target audience during a specified period of time. It is also known as "public relations" or PR. 6 . A product that is highly differentiated may also need more advertising to help set it apart from the competition . new products tend to need a larger advertising budget to help build awareness and to encourage consumers to trial the product. remind buyers where to find a product Stage 2: Set the Advertising Budget Marketers should remember that the role of advertising is to create demand for a product. brand or business by placing information about it in the media without paying for the time or media space directly. For example.g.e.g.emphasizing the points of difference.e.
capture the customer's attention (c) Believable .is the intended message being communicated effectively and to the intended audience? 7 . A successful advertising message should have the following characteristics: (a) Meaningful . since research suggests most consumers doubt the truth of advertising in general Stage 4: Decide which Advertising Media to Use There are a variety of advertising media from which to choose.Research suggests that the clarity of the advertising message is often more important than the amount spent. when and which channels) or in a national newspaper or perhaps a magazine focused on this segment of the population? Stage 5: Evaluate the results of the Advertising Campaign The evaluation of an advertising campaign should focus on two key areas: (a) The Communication Effects .where. The advertising message must be carefully targeted to impact the target customer audience. The key factors in choosing the right media include: (a) Reach .what proportion of the target customers will be exposed to the advertising? (b) Frequency . A campaign may use one or more of the media alternatives.will it have most impact? For example does an advert promoting holidays for elderly people have more impact on Television (if so.a difficult task.Stage 3: Determine the key Advertising Messages Spending a lot on advertising does not guarantee success. if the target customer sees the message .customers should find the message relevant (b) Distinctive .how many times will the target customer be exposed to the advertising message? (c) Media Impact .
has the campaign generated the intended sales growth. This second area is much more difficult to measure Public Relations The Institute of Public Relations defines public relations as follows: “The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics” What is meant by the term “publics” in the above definition? A business may have many “publics” with which it needs to maintain good relations and build goodwill.(b) The Sales Effects . For example. consider the relevant “publics” for a publicly quoted business engaged in medical research: • Employees • Shareholders • Trade unions • Members of the “general public” • Customers (past and present) • Pressure groups • The medical profession • Charities funding medical research • Professional research bodies and policy-forming organizations • The media • Government and politicians The role of public relations is to: • Identify the relevant publics • Influence the opinions of those publics by: o Reinforcing favorable opinions 8 .
and include: • Monitoring the amount of media coverage obtained (press cuttings agencies play a role in keeping businesses informed of this) 9 .o Transforming perhaps neutral opinions into positive ones o Changing or neutralizing hostile opinions Public relations techniques There are many techniques available to influence public opinion. fund managers etc Shareholder meetings (including the annual general meeting The main measures of effectiveness concentrate on the process of public relations. some of which are more appropriate in certain circumstances than others: Consumer communication Customer press releases Promotional videos Consumer exhibitions Competitions and prizes Product launch events Celebrity endorsements Business communication Corporate identity design Company and product videos Direct mailings Web site Trade exhibitions Financial communication Financial media relations Annual report and accounts Meetings with stock market analysts.
setting up competitions with attractive prizes. temporary price reductions. Sales promotion can be directed at: • The ultimate consumer (a “pull strategy” encouraging purchase) • The distribution channel (a “push strategy” encouraging the channels to stock the product). increased PR activity. sales promotion is about “action”. Sales promotion is commonly referred to as “Below the Line” promotion. It is not designed to be informative – a role which advertising is much better suited to. or (2) more of the product at the normal price. offering free gifts or trading stamps. It may include an advertising campaign. 10 . door-to-door calling.• Measuring attendance at meetings. More than any other element of the promotional mix. arranging demonstrations or exhibitions. summarized in the table below: Price promotions Price promotions are also commonly known as” price discounting” These offer either (1) a discount to the normal selling price of a product. telemarketing. conferences • Measuring the number of enquiries or orders received in response to specific public relations efforts Promotion .Sales Promotion A good definition of sales promotion would be as follows: “An activity designed to boost the sales of a product or service. It is about stimulating customers to buy a product. a free-sample campaign. This is usually known as “selling into the trade” Methods of sales promotion There are many consumer sales promotional techniques available. personal letters on other methods”.
It is also known as a “premium promotion” in that the customer gets something in addition to the main purchase.Direct Marketing 11 . Consider the following examples of the use of coupons: .On a pack to encourage repeat purchase . train companies. Promotion . Attractive. therefore. Most competition and prize promotions are subject to legal restrictions. Frequent user / loyalty incentives Repeat purchases may be stimulated by frequent user incentives.Increased sales gained from price promotions are at the expense of a loss in profit – so these promotions must be used with care. car hire companies etc. way of offering a discount. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines. very important part of the sales promotional activity in retail outlets. Point-of-sale displays Research into customer buying behavior in retail stores suggests that a significant proportion of purchases results from promotions that customers see in the store.The key objective with a coupon promotion is to maximize the redemption rate – this is the proportion of customers actually using the coupon. Competitions and prizes It is another popular promotion tool with many variants. informative and well-positioned point-of-sale displays are. Coupons Coupons are another. Gift with purchase The “gift with purchase” is a very common promotional technique. very versatile.
analysis and tracking of customer behavior to develop a relational marketing strategies The process of direct marketing covers a wide range of promotional activities you may be familiar with. It involves the use of a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sales service). • The advertiser can target a promotional message down to an individual level. interests. Direct mail is widely thought of as the most effective medium to achieve a customer sales response. These include: • Direct-response adverts on television and radio • Mail order catalogues • E-commerce • Magazine inserts • Direct mail • Telemarketing Direct mail Of the above direct marketing techniques. the one in most widespread use is direct mail. Direct marketing has been defined by the Institute of Direct Marketing as: The planned recording. occupation and other variables Personal selling is one of the oldest forms of promotion.Direct marketing is concerned with establishing an individual relationship between the business offering a product or service and the final customer. and where possible personalize the message. There are a large number of mailing databases available that allow businesses to send direct mailing to potential customers based on household income. What are the main roles of the sales force? 12 .
answering questions and trying to close the sale (d) Servicing .trying to find new customers (b) Communicating .Kotler describes six main activities of a sales force: (a) Prospecting .employing a sales force has wages communication between the buyer and many hidden costs in addition to Excellent for communicating complex / Not suitable if there are thousands of detailed product information and features Relationships can be built up important if closing the sale make take a long time Sales Promotion Can stimulate quick increases in sales particular products Good short term tactical tool 13 If used over the long-term.lots of seller Disadvantages Impersonal .with existing and potential customers about the product range (c) Selling .cannot answer all a customer's questions Not good at getting customers to make a final purchasing decision Costly .contact with the customer. Advantages and Disadvantages of Each Element of the Promotional Mix Mix Element Advertising Advantages Good for building awareness Effective at reaching a wide audience Repetition of main brand and product positioning helps build customer trust Personal Selling Highly interactive . customers important buyers by targeting promotional incentives on may get used to the effect Too much promotion may damage the brand image .providing support and service to the customer in the period up to delivery and also post-sale.
during the pre-liberalized era there was practically no competition and a few brands dominated the market in several product categories.since Risk of losing control . providing several services which include trading used cars and expanding its distribution. If a brand of cereal aspires to be a niche brand it should have a marketing mix very different from that for middle-class consumers (to make them substitute their regular 14 .cannot always the message seems to be coming from a control what other people write or say third party (e. sales promotion.g. it has been forced to attempt a number of strategies to maintain its leadership launching new models. This.which is `placing' the brand in the market and later fine-tuning the marketing mix elements to suit the needs of the target segment. Prioritization of promotional mix elements starts from the clarity associated with the definition of target segment. In today's context. Samsung has used a number of marketing mix elements to become competitive in recent times with several product variants for different segments of the market.if the publicity is achieved through the right media Importance Of IMC in Washing machine industry The PROMOTIONAL MIX forms the foundation for any marketing strategy. in fact. carefully identifying the scope for providing a competitive Promotional mix. Decades ago. It facilitates the marketer to establish linkages with a focused target segment. sub-brands. It forms the brand's strategy in a systematic and structured manner. Though Videocon has been around in the Indian market only from the early 90’s . magazine.Public Relations Often seen as more "credible" . newspaper) about your product Cheap way of reaching many customers . even the brands which have been in the market for several decades make a planned attempt to construct a strategy based on marketing mix. companies may have attempted third degree marketing . encouraged marketers to practice third degree marketing (even without the need to either clearly define the market or to fine-tune marketing mix elements). In the Indian market context.
Having an approach like this would enable the brand to increase the share of the customer besides expanding the market. the marketers brought in the buyer of the brand (the mother) and the concept of Fabricare especially for those customers who care a lot for their clothes. Value-Based Promotional Plans Washing machines as consumer durables fall in the need-based category and value may be strongly associated with the quality and benefits given by the way of sales promotion. A niche brand could prioritize premium pricing and a high visibility advertising campaign emphasizing its global associations. LG is an interesting example that illustrates the power of promotional linkages. At a later point. A mass-market brand (however global it is) has to prioritize low unit price in a country like India. On the other hand. This could be a workable strategy. The TV ad showed the typical housewife choosing the brand. One approach in this context is to have continuous advertising that features user imagery — focusing on the consumer who may use the category. the brand advertised a very focused proposition — whiter clean.breakfast with cereals. Some of the brands such as Samsung washing machines may also be amenable to symbolic promotional campaigns. There were also promotional efforts to create awareness about the brand (like merchandising and so on). as it was oriented towards high value. 15 . Whirlpool a few years ago created a `character' . There may be a large number of consumers who are price-sensitive and who are interested in the brand only as long as sales promotion is continued. LG. There is a clutter of communication from a number of brands that compete in the category. The advertisements highlighted the need for an offering of this kind among a well-defined target segment. especially for a brand entering the food category as experience all over the world shows that such brands take decades to become a part of the ‘consumer's habit’. Generally for washing machines the imagery has the housewife as its core element (Samsung. which is not easy as eating is a part of the culture in any part of the world). the advertising campaign has laid the foundation for sales promotional campaigns preserving the USP of the brand. Initially. Perhaps there could be some logic for a global brand to even be the loss leader (with a low price) in India until the time a strong loyalty is established. Essentially. the stereotype of a typical middle class housewife. Whirlpool).MUMMY. It also used effective imagery of having children in its TV commercials.
a consumer has a choice of more than 10 brands and more than 80 models. In the 16 .650-crore industry is about decade-and-a-half old.55 million units industry in 1993-94.000. The fully automatic has about 15 percent share. 4-5 kg constituting 50 per cent and greater than 5 kg 15 per cent of the market. The Semi Automatic was the first to be introduced in India and comprises 76. it can categorized be into less than 4 kg comprising five per cent of the market.Overview of Washing Machine Industry The washing machine industry in India Rs 2. whereas the latter comes in the range of Rs 12. it has grown to 4. In today’s scenario. The arrival of multinationals has also widened the available product range.4 per cent of the market with fully automatic category comprising the rest. Most of the new machines are incorporated with latest technology Structure The washing machine industry can be segment and categorized into: • • Semi Automatic Fully automatic such as Fuzzy logic. The market can be segmented into top load and front load as well with top load comprising 16 per cent of the industry while front load constituting just five per cent. From being a 0. The reason for the Semi Automatic being preferred over fully automatic is that the former is in the range of Rs 5000-8000. It started with the single tub washers and subsequently the twin. Fabricare etc. Videocon and BPL were the first player to enter the washing machine industry in India. On the base of capacities.21 million units in the FY 2008. The twin-tub semi-automatic washing machine constitutes about 80 per cent of total sales and the trend is expected to continue.000-26. The market has lately seen the entry of single-tub semi automatic machine by Samsung.tub category came into the scene and therefore the share of washers became insignificant.
3 18. SHARE 24. However.2 14. Market Performance The washing machine industry had a clear growth run till 2002. the Korean consumer durables major. it has been declining since the year 2002 and is showed the same trend from 2003 to 2006. Region wise.4 % market share.3 per cent (value-wise). About 40% of the sales are from the metros. it grew at a CAGR of 20 per cent. got the top slot in the washing machines segment in the year 2007.9 per cent to garner a market share of 24. LG Electronics. It was closely followed by Whirlpool with a market share of 18. The performance of this industry has been quite dismal in the current fiscal too. Whereas in FY 2006 the production decreased by 3.5 per cent and sales also went down by 3. growing by 38. However the price levels of washing machines have remained static during the last three years. west and south is a major market for fully automatic while north is for semi-automatic.5 per cent and it also indicated a rise in sales by 2%.2 per cent. Between the year 2000 to 2002.4 25 20 15 10 5 0 LG WHIRLPOOL MAJOR PLAYERS Figure 1 VIDEOCON 17 . 30 %ge MKT SHARE MKT. The washing machine production for the FY05 increased by 2. the consumer preference is shifting from the smaller size segments (3.2% and Videocon with 14.5-5 kg) to the larger size segments (6 kg).semi-automatic segment.
availability of cheap labour has restricted growth. Performance In Current Fiscal (2008-09) The washing machines industry grew by a marginal 0. This translates into immense opportunities if we compare it to the penetration levels in China of 48%.In the front-loading category. it is the largest constituent of the durables industry — washing machine which witnesses the real brand wars. however. This clearly explains the difference in terms of market growth. The growth. saw double-digit growth both in value and volume terms. The washing machine is still not popular in India because of scarcity of water (in some cities. The segment grew by 11 per cent value wise.7 per cent. Recent Trends In Washing Machine Industry The festival season opens new doors to the consumer durables market and it witness a barrage of promos and discounts. It makes companies spend hugely into the promotional activities. Also.8 per cent with urban being 13 per cent and rural 0.8 per cent volume wise in the first half of the year. Demand Drivers The mass penetration level of washing machines in India is just 4. Another factor to be noted is that whereas in India a little over 4 million machines were sold in FY 2007-08. The fully automatic segment. While even seasonal products like refrigerators and washing machine get a sales boost due to the marriage season and bonus time for salaried employees. was 6. and 15. 18 . which accounts for a lesser share in the washing machine segment. IFB has the highest market share with 70-75 per cent market share and LG comes second with seven per cent. water pressure is less than adequate) as free flow of tap water is needed for smooth operation of a washing machine. The October-December period tends to account for more than one third of annual sales for the durables industry.5 per cent in volume terms for the same period. China sold 14 million machines.9 per cent in the period January-June 2008 in value terms.
Most of the major players bunch their product launches for this season as well as a lot of attractive schemes and offers. in some cases. Like LG. Price-offs and freebies seem to be the most popular promotions during the festive season.lgindia. because the first mass marketed automatic washing machines sold from the 1950s onwards in Europe were almost 19 . Its main rival. BPL also offers a host of sites that provide only product feature details. CHAPTER-II LITERATURE REVIEW In the United States market. Samsung India is sparing no effort in advertising to support its promotions. Samsung also with its ‘Phir Se Phod ke Dekho’ campaign is making a strong foray into the washing machine segment. price information.lgezbuy. Videocon also has an extensive product showcase with all product features listed on its site. However. A factor in the preference for front-loaders in Europe is the preference for integrated appliances that sit under countertops in kitchens and utility rooms or that can be fully integrated and concealed in kitchen cabinetry. and has earmarked a whopping Rs 10 crore for print and television advertising. LG estimates that online business will account for 20% of its turnover this year and further rise to 30% in the next two years. top-loading machines are the most commonly used. Also. which include a basket of all LG products.com is a platform for interacting with consumers. Samsung India also has launched a Rub ka Kamaal promotion in which it is giving away gifts worth Rs 15 crore as prizes. in Europe the front-loading style is preferred. and. Some promotional campaigns of major brands are: LG’s two promotional campaigns during the period — Patakha Ghumao Inam Pao and LG Healthy Home Jackpot — which would not only give the consumer assured gifts but also a shot at the 80 jackpot prizes.com is an online mall. the once-highly popular exchange schemes is not to be counted out yet. www. www.
they also use a horizontally mounted drum. This has driven consumers away from inefficient machines as they will generally try to buy A rated appliances. Best Wash and Best Water Extraction (Spin) performance. This makes it possible to dry clothes very quickly by hanging them on washing lines or airing racks or can substantially reduce the length of time required in a tumble dryer. The clothes are loaded through a hatch in the drum wall. European households also tend to pay more attention to water and energy conservation as heavy environmental taxes are levied on both water and energy use. These machines are particularly popular for small apartments as they take up less floor space than a conventional front loader and for historical marketing reasons are more popular in certain EU countries.4 per cent of the market with fully automatic category comprising the rest. Coming on to the Indian context. Their design is mechanically identical to that of a front loader. Rather than washing the clothes with an agitator. of European washing machines may be top loading they are not of the same design as North American machines. For example they are quite commonly found in French houses while they're practically unheard of in the UK and Republic of Ireland. it is seen that still today people prefer the Semi Automatic visà-vis the fully automatic. water pressure is less than adequate) as free flow of tap water is needed for smooth operation of a washing machine. availability of cheap labor has restricted growth. whereas the latter comes in the range of Rs 12. Also. For example a "Triple A" (AAA) rated machine = Lowest Energy Consumption.exclusively front loaders European consumers tended to associate top loaders with labour intensive obsolete technology. The main reason for the Semi Automatic being preferred over fully automatic is the price sensitive Indian consumer as the former is in the range of Rs 5000-8000. The EU also has a comprehensive energy efficiency.000-26. The semi automatic comprises 76. wash performance and spin dry performance labeling system which rates major appliance performance from A to G. It should also be noted that while 10&percnt. Front loading machines also offer much higher spin drying speeds of up to 2000 RPM. 20 .000. Another reason for the lack of popularity of the washing machine in India is the lack of infrastructure in terms of scarcity of water (in some cities.
Promotional Strategy Of Different Companies Samsung Samsung launches road shows Samsung India Electronics Ltd. has launched "Samsung Dream Home" road shows. the road show will cover 8-10 cities across India. As an emerging economy. heroes. He had studied about the Adapting IMC to Emerging Markets: Importance of Cultural Values in the Indian Context. In addition to cultural overtones finding a place in advertising. S. This combination of factors is useful in evaluating cross-cultural messaging. India’s complex cultural and geographic factors challenge the integrated marketing communications (IMC) framework. IMC messaging must carefully negotiate the role of tradition and modernity in brand messages. in which he talks about “the mental programming of people in an environment. comprise 40 percent of India’s consumer base. rituals and values.” He expressed culture as a combination of symbols. 21 . India reflects its cultural diversity in its twenty-seven states and emerging subcultures. The company has earmarked Rs. upwardly-mobile Indians. Young. Aimed at increasing the awareness and penetration of its brand especially in smaller cities. with per capita incomes only seven percent of those in emerged economies. 60 lakh for the promotion. The explosion of mass media and the aspirations of young consumers operate against the backdrop of strong traditional cultures. Advertising messages within such product categories require cultural and customer-centric considerations.Ramesh Kumar is a professor at the Indian Institute of Management in Bangalore. India.Dr. As the following analysis of mainstream advertising campaigns will demonstrate. Advertisements have shown great innovation in communicating brand messaging within traditional and contemporary cultural dimensions. some product categories are culturally oriented. those under 21 years -old.
Cameras. Apart from this the company also has gone on line but has not limited its activities to the mere creation of a website. and those that have. During its duration.The road show was launched as test cases in Mangalore.10 Crores for the customer and the Dream Prizes for customers include Samsung Digital Flat TVs.. has been one of the trendsetters in this space. In addition to the Samsung Dream Home exhibitions. the total awareness of the brand increased to 82 per cent. up from 47 per cent in awareness level in mid 2003. This Promotion has gifts worth Rs. the consumer electronics major. every Samsung washing machine product purchased by a customer entitles him/her to a gift from Samsung. Samsung India Electronics Limited (SIEL). 22 . The road shows. which carry all Samsung products. held at hotels. the company established its presence on the Web and has gone from strength to strength to establish itself as an e-enterprise. called ‘Samsung Dabaake Jeeto Offer. The company has also used this campaign as an opportunity to express its appreciation towards the Indian consumer for making the LG brand an overwhelming success in the country. Within a short time span of three years since commencement of operations in 1995. are supported by local level advertising. The company claims that a pre and post Mangalore road show survey showed that Samsung's unaided brand awareness increased to 40 per cent from 9 per cent in mid 2003. but has instead used it a business facilitator. the company will continue with its mobile vans in the rural areas. Frost-free refrigerators. Mobile Phones. launched a mega promotion for the forthcoming Soccer event. At a time when most companies in India are still skeptical about using the internet. Microwave Ovens. Samsung India Electronics Ltd. LG LG has started a campaign named bash to celebrate the achievement of being a leader in the Indian market for the last 10 years. In addition.
Once verified. a projection TV and other exciting 23 . www.lgezbuy. The customer can also check the status of his order through the site.lgindia.8 ton AC. Frost Free Refrigerator.com is an online mall. PC. The first offer entitles the customer to two scratches. LG gives the go-ahead to its dealer while sending a confirmatory e-mail to the customer. Over and above this. www. Videocon Videocon International Ltd. LG’s online business has accounted for 20% of turnover last year and expected to rise to 30% in the next two years. each which would include a basket of all LG products called "LG Healthy Home Jackpot". The LG mall has tied up with Citibank to create the secure payment mechanism where the customer can key in his credit card details. During this time the consumers can win various attractive gifts ranging from a Flatron Television. 0.com is a platform for interacting with consumers. Branded T Shirts. Microwave Oven.. below the line activities and the gifts. The promotion involves a mega budget of over Rs 60 crore. exchange offer.Ek Mein Char Ka Dhamaka”. Semi Automatic Washing Machine. Home Theatre Audio System. A offer that gives its customers assured gifts. Bags and Emergency Lights. there are some bumper prizes worth Rs 1 lakh. which includes spends on the print and electronic media. India’s largest consumer durables company has launched several promotional strategies like “Diwali Phataka.from upto 5 Kgs of gold. Payment can be 100% in advance or 10% in advance and the rest on delivery. Financing options are also available through an online tie-up with GE Countrywide.With the coming of the festive season it brings a lot of offers into the market and LG is always a brand giving many value added offers to the customers. On the first scratch the customer stands to win attractive prizes. The main objective is to encourage customers to switch to new generation products to enhance the sales of the company. Window AC with remote. extended warranty and 0% finance.
IFB For IFB it is always “Customer First”. be it blazing summers. Videocon presents Diwali Bonanza in summers The season witnessed a flurry of activity in the form of a lot of attractive consumer promotion schemes.from producing the finest Washing Machine in the country. The second scratch gives to 50% off on the next purchase. finance options and free gifts. • • • • Special Exchange price Free gifts 0% Interest 3 years warranty Garmi mein Diwali scheme has been supported by an extensive advertising campaign and the scheme has received a good response from the customers. as the excitement in a match never dies down. building the most reliable color TV to extending the most comprehensive nationwide customer service support. the company had targeted sales of Rs 325 crores. the enthusiasm in the market place. During the last festival season. Videocon has upped its advertisement budget from 80 crores to 140 crores last financial year. They have a passion for believing in the best for its customers. From the Khel Ke Dekho to the recently conducted Bada Hai Toh Behtar Hai campaign. makes available to them even in the hot summers the boons of celebrating Diwali with Videocon. the scheme. the company has carried out some very unique promotions throughout the year. One of its kinds. Videocon presents Garmi Mein Diwali Offer. However. There is an extensive marketing and advertising campaign supporting the same.prizes. The promotion gives the best of offers and ushers in the festive season in its fullest glory. The summer throws up a range of surprises for that avid buyer who is looking towards attractive exchange prices. Videocon’s Khel Ke Dekho was a lucrative customer offer that entitled the buyer to loads of freebies. 24 . so is never dull.
“The effect on Consumer Behavior w.In line with this commitment of “Customer First”. 25 . IFB have ‘Flash Service’ . It covers aspects like market share of the competitors. CHAPTER III PROBLEM STATEMENT The study is on “Integrated Marketing Communication.r.t Washing Machine Industry”.A special customer support programme that will ensure 1 hour/100* minutes service to its customers in the major cities to provide IBF customers uninterrupted usage with their washing machines.
Thus I found this characteristic of washing machines very intriguing and therefore I decided to take up this research proposal. Therefore it is even more difficult for companies to chalk out strategies to connect with the customers. Such framework is called “research design”. 26 .buying attributes of customers. Research simply means a search for facts-answers to questions and solution to problems. It is a purposive investigation. The study is an effort at understanding the consumer’s attitude about washing machines and their manufacturers. It is a science of studying how the search is actually done. The most intriguing and interesting aspect behind the selection of this research proposal is that washing machine by its very nature is a product which is useful but has little differentiation between different brands. Apart from this it generally lies in the bathroom of a household and does not have that aspirational factor as associated with a music system or a TV. It presents the source of data collection. the sampling procedures and tools of investigation and limitation of the study. In other words research means search for knowledge and research methodology is a way systematically solve the research problems. preference of the customers etc. It is an organized enquiry. My research project has a specified framework for collecting the data in an effective manner.
It is used when in order to estimate the proportion of people who behaved in a certain way. To analyze the different strategies of IMC used by companies in the washing machine industry.t Washing Machine Industry.CHAPTER IV METHODOLOGY It includes following stepsDefining the research problem & research objective: The definition of the research problem includes the study of the topic “Integrated Marketing Communication.The effect on Consumer Behavior w. As the project deals with the effect of IMC on consumer behavior this research design was taken.r. • 27 . It was necessary to do a Descriptive Research study as it is typically concerned with determining the frequency with which something occurs or the relationship between two variables.” The research design: In order to accomplish my objectives. • • To study and analyze the effect of the IMC tools on consumer behavior To study the consumer’s understanding of the different IMC tools used by the companies. The descriptive study is typically guided by an initial hypothesis.
Another reason for going by personal is to get good interaction with the respondent as well as to know the respective market. As the project deals in IMC’s effect it consumer behavior. This calls for three decisions: Sampling unit: Who is to be surveyed? The market researcher must define the target population that will be sampled. The main reason for going by personal is that one get quality as well as up to an extent. The tool used for collecting the data is Questionnaire. news papers and internet. In this research project. unbiased answers. 28 . Primary data are data freshly gathered for specific purpose or for a specific research project. The questionnaire used for the research has both. the target population is the washing machine consumers. publications. The questionnaire was administered in person. It was collected through various magazines. the marketing researcher must design a sampling plan. Both the questions were included in the questionnaire so as to get more precise and up to date response of the respondents. the results are based on both the secondary as well as the primary data. the open ended as well as the close ended questions. The Secondary data was collected in order to utilize the already collected information which could be very useful for the preparation of the report.Data collection methods: The researcher can gather primary data. Sampling design for data collection: After deciding the research plan and research instrument. secondary data or both. Secondary are data that were collected for another purpose and already exist somewhere.
In my research. it is believed that they are representative of the population of interest. It is because the sample elements are handpicked and it is expected that they can serve the research purpose. Typically. a larger sample is drawn. the sample size is dependent on the amount of the information required. Under judgment sampling. It is only when the elements have been selected with known probabilities that one can evaluate the precision of a sample result. All nonprobability samples rely on personal judgment somewhere in the process. a sample plan of the population should be drawn. If the evidence is not conclusive after a small sample is taken. Samples can also be distinguished by whether they are fixed or sequential. The plan taken for this project is Nonprobability Sample plan.Sampling procedure: How should the respondents be chosen? To obtain a representative sample. if still inconclusive. the Snowball Sampling is used as one respondent identified the other with the similar characteristics. Hence Sequential Sample was chosen because it aims at answering the research question on the basis of accumulated evidence. the method used here is Judgmental Sampling. they do not permit an evaluation of the adequacy of the sample. more observations are made. From various nonprobability sampling methods. and although these judgment samples may indeed yield good estimates of population characteristics. 29 .
30 . The tabulation may take the form of simple tabulation or a cross-tabulation. Due to a small sample size. One dimensional diagrams are used e. different types of statistical techniques are used: Statistical tools used: ♦ ♦ ♦ ♦ ♦ ♦ Tabulation of data & develops frequency distribution. pie diagrams. In order to analyze the data. The next to last step in the marketing research process is to extract findings from the collected data. the sample size of the survey is 200. Graphs are used.g.g. simple tabulation is used. Sampling methods are used. In the preparation of this report. The respondents were mostly chosen from South Delhi and Noida.Sampling size: How many people to be surveyed? In a market research. Two dimensional diagrams are used e. coding and tabulation. Data collection and analysis involves editing. Data collection and analysis: The data collection phase is most important and most prone to errors. bar diagrams. But due to the geographical and time limitations. Simple and complex tables are used. editing and coding is not required. large samples give more reliable results than small samples.
c) Sample size taken for the study is not adequate to represent the whole population. 31 . which are beyond human limitation. d) No past information was available on impact of sales promotion activities on things such as brand building and sales increase so no comparison could be made or any significant change determined. Although proper care was taken to present the report in the best possible way. but still the difficulties which was faced are as follows— a) Area of survey was conducted in specific regions of DELHI and NCR only. but yet he/she faces certain difficulties. have also a bearing on the study.Limitations of the study: Every person tries to do the work in the best possible way. b) Time and other factors.
CHAPTER V RESULTS & DISCUSSIONS AGE 20 43 14 15 -25 yrs 26-35 yrs 36-45 yrs Above 45 yrs 123 Most of the respondents interviewed were between the age group of 26-35 years as these were the people most likely to have bought a new washing machine in the recent past. 32 .
The highest Top of the Mind share is again enjoyed by LG in the minds of all the respondents interviewed. 33 .1) Which is the brand that comes to your mind if someone says Washing Machine? 70 60 50 40 30 20 10 0 Whirlpool LG Samsung Videocon BPL IFB 12 11 1 32 33 49 63 Whirlpool LG Samsung Videocon BPL IFB FINDINGS LG enjoys the highest awareness in the mind of the customers followed by Samsung and Whirlpool. Spontaneously. respondents were aware of. the highest response was for LG again as a brand.
2) Which Brand of washing machine you have? 80 70 60 50 40 30 20 10 0 37 76 Whirlpool LG 33 27 18 9 Samsung Videocon BPL IFB 1 Findings As seen here out of the 200 respondents 76 of them have LG washing machines closely followed by whirlpool and Samsung. 34 .
35 . time and cost savings and good cleaning as the primary reasons behind buying the washing machine. Apart from this buying decision depends upon the disposable income level of the customer.3) What were the reasons which made you to buy washing machine? 33% 31% Comfort of Family members Can afford one now Good discounts/schemes Good cleaning 27% 6% 3% Save time and cost Findings On being asked the most important reason for buying the washing machine. most of the respondents said that comfort and convenience.
4) Which of the promotional activities you have encountered or you know the companies have employed? 7% 2% 7% 5% Adv. By Print media Sales Promotion Direct Marketing 16% Internet Marketing Publicity and Public relation Personal selling 25% Findings It was found that the electronic media consisting of TV. radio etc is the most known and seen media of communication as almost 38% people have seen advertisements of washing machine in these media. 36 . Other forms such as newspaper ads or different sales promotion schemes like discounts and exchange offers are also known to the respondents but in lesser amounts. by Electronic media 38% Adv.
This shows that the people are getting influenced by the ads and promotional activities of the companies and that the IMC of the companies is indeed affecting the consumer behavior.5) Does any of the promotional activity done by the company influence your buying decision? 17% Yes No 83% Findings On being asked whether the promotional activity done by the company influence the buying decision as many as 83% of the respondents answered in the affirmative. 37 .
Therefore one can safely assume that these three are the most effective medium of advertising to reach the customers and therefore influence the consumer behavior.6) Which tool of Advertisement influenced you the most? 7% 7% 4% 34% TV Radio Internet Newspaper Magazines 29% 4% 15% Window Display Billboards Findings The respondents stated that TV. 38 . The ads in news paper and magazines got the second and third highest responses. newspapers and Magazines were the most influential tool of advertisement. As many as 34% of the customers were influenced by TV and radio commercials.
These two tools of sales promotion are the main source of influencing the consumers. As many as 44% of the respondents have voted for free gifts for the reason for their purchase and 37% have voted for discounts. 39 .7) Which is the most influential tool of Sales Promotion? 10% 3% 6% 37% Discounts Free Gifts Exchange offers POP materials Schemes(Scratch card) 44% Free gifts and discounts were the most influential tools of sales promotion as most of the respondents have stated.
8) Which of these promotional elements influenced you the most? Findings It is found that advertising is the most effective means of reaching the masse and sales promotion and personal selling come close second and third in the survey. 40 . This shows that traditional media still plays a very important part in the spread of a message in the washing machine industry.
Therefore the brand image is the most important attribute and the companies must give proper attention to building good brand image.9) What information is asked most frequently by the customers? When customers go to the dealers the most important consideration of them before purchasing a product is the brand then comes features and so on. 41 .
should be told proactively along with all the features/functions available so as to present the whole thing in a cost benefit analysis in Case of washing machine. Company should come up with some innovative financing scheme to attract the potential customers. some focus on this regard is also necessary to boost the ad saliency. making both the model and the brand synonym with each other. The marketing strategy should be formulated in such a manner that fully automatic machine is projected no more the luxury product but the necessity. • Price being the first thing asked.CHAPTER VI SUGGESTIONS & CONCLUSION • A better media planning is required for telecasting advertisements of washing machine as most of the intending buyers do hardly recognize the branded press ad still and the TV ad still. Whatever respondents register while visualizing the ads should be analyzed and the future communication strategy should be formulated on those lines. Also the communication strategy needs to be revised. • In this era where customer is the king Whirlpool’s After sales service if found to be lacking Though in some geographical areas depending upon the service agency the service provided is good but still there is no uniformity and this has resulted in dissatisfaction in customers mind • • • • So Strict monitoring of the service agencies and setting and implementing of new standards has to take place. No other brand in the washing machine industry has done the same and that’s why they lag way behind. • Taking the example of Whirlpool which rates first both in TOM and spont recall of brand and ads seen can be attributed to the fact that they have used only one model over the years. 42 . • • Respondents are also found to register contents regarding clean and healthy in the advertisements. Proper technical training has to be provided to service people. Hence.
A good margin and motivation should be provided to the dealers for pushing the washing machine to the customers. These two tools of sales promotion are the main source of influencing the consumers. Free gifts and discounts were the most influential tools of sales promotion as most of the respondents have stated. Thus if customer get all the things under one roof. it was found that POP material like brouchers etc are not easily available . • The respondents stated that TV. Therefore one can safely assume that these three are the most effective medium of advertising to reach the customers and therefore influence the consumer behavior. So the companies need to adopt strategies like sending personalised mails and promoting their web sites through various events they are sponsoring. • As we have seen that today more and more people are looking out for good financing opportunities when they are going out tot buy washing machine. 43 .This is one point of concern for all the leading companies as they provide all the POP material but the customers are not able to get it just because of the retailers/dealers . Even during the course of survey on visiting the retailers.• • • Though all the major players have set up sites for information. Most of the present owners are not happy with the availability of POP material.. they might prefer the brand and this would surely boost the sales of the particular brand. As many as 44% of the respondents have voted for free gifts for the reason for their purchase and 37% have voted for discounts. • • • • As getting a financing through bank or agency can be a bit cumbersome companies like Whirlpool have taken a lead in provided zero % interest rate. option. after sales service and selling of washing machines hardly 2-3% of respondents were aware of this fact. This area is provides a big opportunity for the different players in the fray to attract customers with easy and affordable finance as people are also on lookout for the loans and if they get it under one roof this would make it very convenient for the people. newspapers and Magazines were the most influential tool of advertisement.
Now if there was a change in the brand purchased with respect to consideration set was it due to sales promotion activities.Scope For Further Research The project couldn’t cover the buying decision of customers properly in terms of the people consulted before purchasing the washing machine. Also if the respondent had anything on his/her mind before he/she visited the shop floor and if the final brand purchased was different from his/her consideration set. The owners of washing machine interviewed were not segregated into category such as owners of washing machine bought in the year 19xx. This could be further researched.this way the difference in importance given to sales promotional activities and satisfaction level with after sales service could have been determined . 44 .the satisfaction level with after sales service level would have given a platform to determine the importance companies have given to this department to attract customers over the last few years particularly with increase in competition and saturation of the market. dealer’s recommendation or something else.
marketingtutor. 31 January 2000. www.1999.com 2.whirlpoolindia.1999.McGraw Hill Bhandari Bupesh.” advertising and promotion management”. august 28.business line Krishanmurthy Narayan.com 3.pp122 Will washing machines spin magic this monsoon? Richa Mishra.com 4. www.Richa Mishra .”Millinieum Push”.advertising and promotion-An IMC Perspective.”LG pumps up the volume”.REFRENCES Books • • • • • • • • • • Belch.McGraw Hill Book Company Shimp Terence.pp 144-146 Suresh K. Business world.The Dryden Press Stanton William. www. Rosesiter John. “fundamental of Mraketing”1997. fourth edition. www.Ltd..1998.samsung.com 45 .com 6. 15 march 2000.Promotion and supplemental Aspects of Marketing Communication”. May 20 .lgindia.com 5.Michael.”Marketing In India”.2003. www. fourth edition.hindu.1999 edition. Percy Larry.” Marketing Management”. George . A&M.Business line Erosion in price washes sheen off washing machines Neha Kaushik. Business line Articles • • Web Sites 1.Millinieum edition.agencyfaqs. &M.” Advertising .Vikas Publishing House. Neelamegham (1987).6 march 2000.” M enjoying it”. Prentice Hall of India Pvt.pp 30-33 Depressing times for washing machines' . Belch. www.Irwin McGraw Hill Kotler Philip.
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