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INTRODUCTION
WHAT IS MARKETING?
Marketing is the social process by which individuals and organizations obtain what
they need and want through creating and exchanging value with others.
OR
Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large. (Approved October 2007)
MARKETING CONCEPT
The 'marketing concept' proposes that in order to satisfy the organizational
objectives, an organization should anticipate the needs and wants of consumers
and satisfy these more effectively than competitors. This concept originated from
Adam Smith's book The Wealth of Nations, but would not become widely used until
nearly 200 years later. Marketing and marketing concepts are directly related.
Given the centrality of customer needs and wants in marketing, a rich understanding of
these concepts is essential:
1.Needs: Something necessary for people to live a healthy, stable and safe life. When needs
remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Needs can be
objective and physical, such as the need for food, water and shelter; or subjective and
psychological, such as the need to belong to a family or social group and the need for self-
esteem.
2. Wants: Something that is desired, wished for or aspired to. Wants are not essential for basic
survival and are often shaped by culture or peer-groups.
3. Demands: When needs and wants are backed by the ability to pay, they have the potential to
become economic demands.
MARKETING ORIENTATION
A marketing orientation has been defined as a "philosophy of business
management." or "a corporate state of mind" or as an "organisation[al]
culture" Although scholars continue to debate the precise nature of specific
orientations that inform marketing practice, the most commonly cited
orientations are as follows :
Product orientation
A firm employing a product orientation is mainly concerned with the quality of its
own product. A product orientation is based on the assumption that, all things being
equal, consumers will purchase products of a superior quality. The approach is most
effective when the firm has deep insights into customers and their needs and
desires derived from research or intuition and understands consumers' quality
expectations and reservation prices.
Sales orientation
A firm using a sales orientation focuses primarily on the selling/promotion of the
firm's existing products, rather than determining new or unmet consumer needs or
desires. Consequently, this entails simply selling existing products, using promotion
and direct sales techniques to attain the highest sales possible.The sales orientation
"is typically practised with unsought goods." One study found that industrial
companies are more likely to hold a sales orientation than consumer goods
companies.
Production orientation
A firm focusing on a production orientation specializes in producing as much as
possible of a given product or service in order to achieve economies of
scale or economies of scope. A production orientation may be deployed when a high
demand for a product or service exists, coupled with certainty that consumer tastes
and preferences remain relatively constant (similar to the sales orientation). The
so-called production era is thought to have dominated marketing practice from the
1860s to the 1930s, but other theorists argue that evidence of the production
orientation can still be found in some companies or industries.
Marketing orientation
The marketing orientation is perhaps the most common orientation used in
contemporary marketing. It is a customer-centric approach that involves a firm
basing its marketing program around products that suit new consumer tastes.
Firms adopting a marketing orientation typically engage in extensive market
research to gauge consumer desires, use R&D to develop a product attuned to the
revealed information, and then utilize promotion techniques to ensure consumers
are aware of the product's existence and the benefits it can deliver.
The marketing orientation often has three prime facets, which are:
1.Customer orientation: A firm in the market economy can survive by
producing goods that persons are willing and able to buy. Consequently,
ascertaining consumer demand is vital for a firm's future viability and even
existence as a going concern.
The marketing mix refers to the set of actions, or tactics, that a company
uses to promote its brand or product in the market. The 4Ps make up a
typical marketing mix - Price, Product, Promotion and Place. However,
nowadays, the marketing mix increasingly includes several other Ps like
People, Process and Physical Evidence as vital mix elements.
Price: refers to the value that is put for a product. It depends on costs of
production, segment targeted, ability of the market to pay, supply - demand
and a host of other direct and indirect factors. There can be several types of
pricing strategies, each tied in with an overall business plan. Pricing can also
be used a demarcation, to differentiate and enhance the image of a product.
Product: refers to the item actually being sold. The product must deliver a
minimum level of performance; otherwise even the best work on the other
elements of the marketing mix won't do any good.
Place: refers to the point of sale. In every industry, catching the eye of the
consumer and making it easy for her to buy it is the main aim of a good
distribution or 'place' strategy. Retailers pay a premium for the right location.
In fact, the mantra of a successful retail business is 'location, location,
location'.
Promotion: this refers to all the activities undertaken to make the product or
service known to the user and trade. This can include advertising, word of
mouth, press reports, incentives, commissions and awards to the trade. It
can also include consumer schemes, direct marketing, contests and prizes.
The macro-environment
A firm's marketing macro-environment consists of a variety of external factors that
manifest on a large (or macro) scale. These are typically economic, social, political
or technological phenomena. A common method of assessing a firm's macro-
environment is via a PESTLE (Political, Economic, Social, Technological, Legal,
Ecological) analysis. Within a PESTLE analysis, a firm would analyze national
political issues, culture and climate, key macroeconomic conditions, health and
indicators (such as economic growth, inflation, unemployment,etc.), social
trends/attitudes, and the nature of technology's impact on its society and the
business processes within the society.
The micro-environment
A firm's micro-environment comprises factors pertinent to the firm itself, or
stakeholders closely connected with the firm or company.
A firm's micro-environment typically spans:
Customers/consumers
Employees
Suppliers
The Media
By contrast to the macro-environment, an organization holds a greater degree of
control over these factors.
The internal environment
A firms internal environment consists of factors inside of the actual company. These
are factors controlled by the firm and they affect the relationship that a firm has
with its customers. These include factors such as:
Labor
Inventory
Company Policy
Logistics
Budget
Capital Assets
CHAPTER-2
What is FMCG?
Fast-moving consumer goods (FMCG) or consumer packaged
goods (CPG) are products that are sold quickly and at relatively low cost.
Examples include non-durable goods such as packaged
foods, beverages, toiletries, over-the-counter drugs and many
other consumables. In contrast, durable goods or major appliances such as
kitchen appliances are generally replaced over a period of several years.
OR
These are consumer goods products that sell quickly at relatively low cost –
items such as milk, gum, fruit and vegetables, toilet paper, soda, beer and over-
the-counter drugs like aspirin.
Nearly everyone in the developed and developing world uses fast-moving
consumer goods (FMCC) every day. They are the small-scale consumer
purchases we make at the produce stand, grocery store, supermarket and
warehouse outlet. FMCG have short shelf lives, so, while the profit margin on
individual FMGG sales is low, the volume of sales makes up for it. The market
for $3.99 orange juice is a lot larger than the market for $399 juicing machines.
CHARACTERISTIC
Frequent purchase
Low involvement (little or no effort to choose the item)
Low price
Short shelf life
Rapid consumption
High volumes
Low contribution margins
Extensive distribution networks
The List Of 5 Indian FMCG Compaies.
Dabur
Amul
ITC
Hindustan Unilever
Nestle
Dabur
Type Public
Sunil Duggal
Chief Executive Officer
Products Health supplements
OTC & Ayurvedic medicines
Personal care
Oral care
Digestives
Foods
Home Care
Dabur (Dabur India Ltd.) (Devanagari: डाबर, derived from Daktar Burman) is
India's largest Ayurvedic medicine & natural consumer products manufacturer.
Dabur demerged its Pharma business in 2003 and hived it off into a separate
company, Dabur Pharma Ltd. German company Fresenius SE bought a 73.27%
equity stake in Dabur Pharma in June 2008 at Rs 76.50 a share.
Dabur's Healthcare Division has over 260 products for treating a range of ailments
and body conditions, from common cold to chronic paralysis. Dabur International, a
fully owned subsidiary of Dabur India formerly held shares in the UAE based
Weikfield International, which it sold in June 2012.
History
Type Cooperative
History
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat,
India.Formed in 1948, it is a brand managed by a cooperative body, the Gujarat
Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly
owned by 3.6 million milk producers in Gujarat.The white revolution was
spearheaded by Tribhuvandas Patel under the guidance of Sardar Patel and
Verghese Kurien. As a result, Kaira District Milk Union Limited was born in 1946.
Tribhuvan das became the founding chairman of the organization which he led
till his last day of his life. He hired Dr. Kurien three years after the white
revolution. He convinced Dr.Kurien to stay and help with the mission rest was
history in the dairying industry.Amul spurred India's White Revolution, which
made the country the world's largest producer of milk and milk products. In the
process Amul became the largest food brand in India and has ventured into
markets overseas.Dr Verghese Kurien, founder-chairman of the GCMMF for more
than 30 years (1973–2006), is credited with the success of Amul. Amul products
are now available in more than 60 countries in the world.
Products And Brands
Amul Milk
Bread Spreads
Cheese
UHT Milk
Beverage Range
Amul PRO
Ice Cream
Paneer
Dahi
Ghee
Milk Powders
Mithai Range
Mithai Mate
Chocolates
Lactose Free Milk
Fresh Cream
Amul Sour Cream
Pouch Butter Milk
Amul Cattle Feed
Recipes
Happy Treats
Hindustan Unilever
Parent Unilever
HUL is the market leader in Indian consumer products with presence in over 20
consumer categories such as soaps, tea, detergents and shampoos amongst others
with over 700 million Indian consumers using its products. Sixteen of HUL’s brands
featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual
Survey (2008). According to Brand Equity, HUL has the largest number of brands in
the Most Trusted Brands List. It has consistently had the largest number of brands
in the Top 50, and in the Top 10 (with 4 brands).
History
Food
Homecare Brands
Industry Conglomerate
ITC was formed on 24 August 1910 under the name of Imperial Tobacco Company
of India Limited,and the company went public on 27 October 1954. The earlier
decades of the company's activities centered mainly around tobacco products. In
the 1970s, it diversified into non-tobacco businesses.In 1975, the company
acquired a hotel in Chennai, which was renamed the ITC-Welcomgroup Hotel Chola'
(now renamed to WelcomHotel Chennai).In 1985, ITC set up Surya Tobacco Co.
in Nepal as an Indo-Nepali and British joint venture, with the shares divided
between ITC, British American Tobacco and various independent domestic
shareholders in Nepal. In 2002, Surya Tobacco became a subsidiary of ITC and its
name was changed to Surya Nepal Private Limited.In 2000, ITC launched the
Expressions range of greeting cards, the Wills Sport range of casual wear, and a
wholly owned information technology subsidiary, ITC Infotech India Limited.In
2001, ITC introduced the Kitchens of India brand of ready-to-eat Indian recipes,
which are produced and sold internationally, at first in cans and later in retort
packages, and more recently online and at festivals In 2002, ITC entered
the confectionery and staples segments and acquired
the Bhadrachalam Paperboards Division and the safety matches company WIMCO
Limited.ITC diversified into body care products in 2005.In 2010, ITC launched its
handrolled cigar - Armenteros - in the Indian market.The company began online
sales in 2014.
Products And Brands
Foods: ITC's major food brands include Kitchens of India; Aashirvaad, B natural,
Sunfeast, Candyman, Bingo! and Yippee!. ITC is India's largest seller of branded
foods with of over Rs. 4,600 crore in 2012-13. It is present across 6 categories
in the food business including, snack foods, ready-to-eat meals, fruit juices,
dairy products and confectionary.
Personal care products include perfumes, haircare and skincare categories.
Major brands are Fiama Di Wills, Vivel, Essenza Di Wills, Superia and Engage.
Stationery: Brands include Classmate, PaperKraft and Colour Crew. Launched in
2003, Classmate went on to become India's largest notebook brand in 2007.
Safety Matches and Agarbattis: Ship, i Kno and Aim brands of safety matches
and the Mangaldeep brand of agarbattis (Incense Sticks).
Hotels: ITC's Hotels division (under brands including WelcomHotel) is India's
second largest hotel chain with over 90 hotels throughout India. ITC is also the
exclusive franchiseein India of two brands owned by Sheraton International Inc.
Brands in the hospitality sector owned and operated by its subsidiaries include
Fortune Park Hotels and WelcomHeritage Hotels.
Paperboard: Products such as specialty paper, graphic and other paper are sold
under the ITC brand by the ITC Paperboards and Specialty Papers Division like
Classmate product of ITC well known for there quality .
Packaging and Printing: ITC's Packaging and Printing division operates
manufacturing facilities at Haridwar and Chennai and services domestic and
export markets.
Information Technology: ITC operates through its fully owned subsidiary ITC
Infotech India Limited.
Nestle
ISIN CH0038863350
Nestlé S.A. is one of the largest food and nutrition companies in the world. Nestlé
has 6,000 brands, with a wide range of products across a number of markets
including coffee (Nescafe), bottled water, other beverages (including Aero
(chocolate) &Skinny Cow), chocolate, ice cream, infant foods, performance and
healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and
pet food.
History
Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company,
established in 1866 by brothers George and Charles Page, and Farine Lactée
Henri Nestlé, founded in 1866 by Henri Nestlé (born Heinrich Nestle). The
company grew significantly during the First World War and again following the
Second World War, expanding its offerings beyond its early condensed
milk and infant formula products. The company has made a number of corporate
acquisitions, including Crosse & Blackwell in 1950, Findus in 1963, Libby's in
1971, Rowntree Mackintosh in 1988, and Gerber in 2007.
Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of
the Swiss Market Index. It has a secondary listing on Euronext.
Nestlé has over 8,000 brands with a wide range of products across a number of
markets, including coffee, bottled water, milkshakes and
other beverages, breakfast cereals, infant foods, performance and healthcare
nutrition, seasonings, soups and sauces, frozen and refrigerated foods, and pet
food. Nestle India Ltd, one the biggest players in FMCG segment, has a presence in milk &
nutrition, beverages, prepared dishes & cooking aids & chocolate & confectionery segments.
The company is engaged in the food business. The food business incorporates
product groups, such as milk products and nutrition, beverages, prepared dishes
and cooking aids, chocolates and confectionery. Nestle India manufactures
products under brand names, such as Nescafe, Maggi, Milkybar, Milo, Kit Kat,
Bar-One, Milkmaid and Nestea.
The company has also introduced products of daily consumption and use, such as
Nestle Milk, Nestle Slim Milk, Nestle Fresh n Natural Dahi and Nestle Jeera Raita.
The companys brands include milk products and nutrition, prepared dishes and
cooking aids, beverages, and chocolates and confectionery. Their milk products
and nutrition includes Nestle Everyday Dairy Whitener, Nestle Everyday Ghee,
Nestle Milk, Nestle Slim Milk and Nestle Dahi. Beverages Include Nescafe Classic,
Nescafe Sunrise Premium, Nescafe Sunrise Special and Nescafe Cappuccino.
Nestle India is a subsidiary of Nestle S.A.
CHAPTER-3