Assignment on

FMCG and Consumer Durables

Marketing Practices

Submitted by
SHUBHAM SRIVASTAVA
ROLL NO. – 66
M.M.S-I, DIVISION - B
MGMIMSR
 FMCG and Consumer Durables Marketing Practices
Introduction
Fast Moving Consumer Goods (FMCG) are products that are sold quickly at
relatively low cost. These are high volume, low unit value; fast repurchase The
FMCG industry includes food and non-food everyday consumer products. They
are usually purchased as an outcome of small-scale consumer decision so they
are heavily supported (advertising, promotion) by the manufacturers. Typical
purchasing of these goods occurs at grocery stores, supermarkets,
hypermarkets etc. The manufacturers are always exploring new outlets and
sales locations while the traditional retailers have introduced private label
brands to capture additional profit. Every one of us uses fast moving consumer
products every day.
Some of the best known examples of Fast Moving Consumer Goods companies
include Procter & Gamble, MillerCoors, HERO Group, Anheuser-Busch, Clorox,
Colgate-Palmolive, General Mills, H. J. Heinz, Cadbury, Reckitt Benckiser, Sara
Lee, Nestlé, Unilever, Coca-Cola, Carlsberg, Kimberly-Clark, Kraft, Pepsi,
Warburtons, Wilkinson, Wipro Consumer Care, Barilla Group and Mars

Consumer durable good is a good which does not quickly wear out, or more
specifically, it yields services or utility over time rather than being completely
used up when used once. These have low volume but high unit value. Durable
goods are typically characterized by long interpurchase times--the time
between two successive purchases. Most goods are therefore durable goods to a
certain degree. These are goods that can last for a relatively long time, such as
refrigerators, cars, and DVD players. Some of the best known examples of
Consumer durable goods companies include Philips, Ford, HERO Group,
Samsung, Videocon, Hitachi and Hyundai.
FMCG and consumer durables business overview

This business is based on building powerful brands and achieving a high level of
distribution.
Global power brands are the choice of multinational companies. Local brands
can compliment these. Achieving superior distribution thorough a powerful
supply chain and making sure the products are available wherever someone
might want or need it. The Supply Chain is the interrelated collection of
processes and associated resources. It includes suppliers, manufacturers,
logistics service providers, warehouses, distributors, wholesalers and all other
entities that lead up to delivery to the final customer. Followed in the market
through sales force activity it can help gain a high level of distribution. Market
Research, consumer research, segmentation and product positioning is the
compulsory homework of any company in this industry. Advertising and
promotions drive brand awareness; trial and purchase are the core activities.
While TV advertising is most common new solutions are also used including
internet advertisements. High budgets, creativity and detailed planning are
needed.
Marketing practices in FMCG sector

Dove: The Mildest One

Brand: Dove
Company: HLL

Dove is a $2 bn brand waiting to spread its wings in the Indian Premium soap
market. Dove was globally launched in 1957. This brand came to India in 1995.
Internationally this brand has a cult status and is a major player in the global
premium soap market.
The brand is positioned as the Mildest Soap. Dove is PH neutral and this makes
the soap soft on all kind of skin types. Internationally this brand is positioned as a
brand that celebrates the “Real Beauty”. Dove defines real beauty as “beauty is
not about how you look but about how you feel". The Dove's official site
"campaign for real beauty.com" highlights this brand value.
In India, the brand did not had the success of its global counterpart. The reasons
are small “Premium “market and another is the price barrier. Dove's initial price
was around Rs50 that put off even the premium customers.
The brand has undergone some repositioning in recent times. Earlier the brand
was positioned on the platform of “Trial for Results" idea. Later it was changed to
the moisturizing platform. The brand is claiming that it is milder than the 25
leading soaps thus proving its legitimacy to being the mildest soap in the country.
Globally also this brand is positioned not as a soap but a cream bar.
Although the "Campaign For Real Beauty" and the mildness are excellent selling
points, the brand is still not able to catch the fancy of Indian beauties. With lot of
sales promotions happening with the brand like 1+1 free, there is a possibility of
brand value erosion. With the brand now priced at Rs 28, the price has somewhat
become reasonable
Indian consumer looks for “Value “even in premium products. Dove have a
negative point in that the soap usually does not last enough because of our
bathroom habits. This has reduced the value proposition for this brand.
With the emergence of an attractive market in the premium cosmetic market in
India, Dove have lot of potential to become a key player, it has got the positioning
right, now it has to set the " Value" right for the Indian consumer.

Listerine: Pioneering a Category

Brand: Listerine
Company: Johnson & Johnson

Listerine is a brand that pioneered the mouthwash category globally. The brand
which is 100 years old was named after its inventor Joseph Lister. The brand over
these years changed hands many times. The original brand owners were Warner-
Lambert which was later acquired by Pfizer. In 2008, the brand again changed
hands to Johnson & Johnson. Listerine is one of the first mouthwash brands to
enter India. The brand pioneered the Indian mouthwash segment which is now
estimated to be worth around Rs 45 crore. Listerine is having more than 90%
share in the Indian market.

Mouthwash category is still very small in the Indian market. Mostly these
products are considered to be medicinal and that perception inhibits lot of
consumers from buying mouthwash product.
The category penetration is still restricted to a small segment of consumers.
The mouthwash is bought by
(a) those who are aware of the efficacy of the product like germ killing etc
( b) those who are conscious about their bad breath
(c) those prescribed by dentists.
A normal consumer may not look at this category as a normal regular purchase

Another major issue that inhibited the growth of Listerine brand was its bad
taste. Why should one tolerate bad tasting mouthwash every morning ? Unless
the need is grave, consumers may not tolerate such an attribute.
Understanding this issue, Listerine changed the flavor so that bad taste will not
be a stumbling block for using this product. But still Listerine is associated with
bad taste among lot of consumers.

Listerine globally is positioned on the germ killing plank. According to reports,

when the brand was first introduced in USA, it got a lukewarm response. To pep
up the sales, the brand owners devised an innovative strategy whereby they
introduced the medical term for bad breath. The advertisers introduced a faux
term Chronic Halitosis to describe bad breath. Consumers fearing that bad breath
is a medical condition ran for the mouthwash cure.
Although the brand had excellent recall , the promotions for the brand was
erratic. The brand went on and off in the media and there was no significant
effort from the brand to penetrate the market. The brand usage was severely
restricted to certain consumer segments and the usage was also not regular.

Listerine is currently running a campaign positioning itself as a “Freshness

Bomb". The new campaign is featuring MTV VJ Cyrus. The ad is strikingly
similar to the “Chocolate Bomb" ad of Cadbury Éclairs. The agency went on to
copy a famous ad rather than spend some grey cells on some new creative idea.

Listerine at this point needs to desperately develop the mouthwash category.

It needs to expand the market by
(a) Educating consumers about product attributes and importance
(b) Encourage consumers to use the product on a regular basis
(c) Focus on attributes like convenience and confidence

Globally Listerine has variants like Teeth Whitening mouth wash which is the
best way to increase the brand penetration. More than bad breath, consumers are
likely to be attracted by the whitening attribute which has the potential to
increase the overall category usage. Indian consumers have become more
networked and socially active. In such a highly interactive environment,
mouthwash has lot of relevance because it is convenient. 30 seconds is only what
is needed to get your breath refreshed and that is a useful and appealing
proposition especially to youngsters.

Axe: The Axe Effect

Brand: Axe
Company: HUL
Axe was born in France in the Year 1983. 24 years later, this brand is Unilever's
best selling brand worldwide. It has an iconic status in whichever market it has
entered. It is also one of the rare brands which can boast of replicating its entire
marketing mix across geographical boundaries. The campaign that you see in
India is what the entire world is watching.
Axe Deodorant was launched in India during 1999. The brand launch was very
quiet and theoretically the brand was having the strategy of Slow Skimming i.e
High Price Low Promotion. Axe at that time was the leading men's deo brand in
Europe and was popular in India in the grey market. HLL had launched this
brand inspired by the volume of Axe sold in the grey market. At that time, the deo
market was a nascent one with an estimated market size of Rs 72 crore. HLL had
the brands Denim and Rexona ruling the market. Axe was priced at a premium
above the Denim brand which was positioned as a male deo brand. Axe initially
was launched in the fragrance Java, Alaska and Atlantic.

HLL did not bother to fine tune its promotional mix to Indian market but just
imported the promotions. The company just ran the ads which was popular in the
Europe and other markets. Axe is the naughtiest brand in the Indian market. The
brand is targeted at male aged 16-25 . Internationally this brand targets male
aged 15-25. It targets all 'Young at heart" naughty guys. The brand has its brand
values of Cool, Fashionable and Stylish. The biggest strength of this brand is the
underlying message or the DNA which is that the brand users are High on
Confidence and always for the Axe users, Girls Makes The First Move. The
biggest competitive advantage of this brand is its complete monopoly over this
brand proposition. All its campaigns revolve round this central theme of
Seduction where Girl makes the first move. The brand assumes that men likes to
be seduced. There are a lot of ads where girls are seen drooling over Hunks in
Motorcycle or in Ready-mades, or even in Innerwear, but in most of the Axe ads,
there are no Hunks, only very ordinary or even skinny kind of people getting
assaulted by beautiful girls which makes the brand more approachable.

Along with this, the brand also ensured that customers are constantly engaged
with new fragrances and campaigns. In 2005, Axe had a high profile launch of its
new fragrance CLICK and before that there was Axe Land campaign and followed
by Axe-Academy then Axe Voodoo and the latest one Phenomenon. Many have
tried most of the fragrances and not all of them are good, but they try it because
they like the brand. That is the power of brand. Axe is one of the rare brands that
has embraced new media to the maximum extent. The brand has started its
Internet based marketing initiative in India with Axe Land which involved a
virtual trip to the Axe world. Globally also this brand has lot of online initiatives
which are almost always naughty.
The print ads of Axe won several accolades in various ad events. Besides Print,
the brand also uses outdoors to its maximum impact. Axe is a classic example of
360 degree branding effort. The Axe marketing strategy is termed as
“Adventurous Marketing" because it’s risky as the brand deals with Girls &
Seduction. Not always every one may like the theme or the campaigns. In India
especially there are self styled Cultural Policemen/Women who cries foul for
anything and everything. It is really surprising that so far, Axe has escaped their
AXE. That also shows that the ad agency is also careful about the concepts put
across the Indian media. While in a more liberal markets, Axe tests new levels of
“Adventures" , here the brand plays really safe. It also ensures the campaigns run
in Indian media are accepted because most often the entire family watches the TV
together.

Marketing practices in Consumer Durables sector

Onida – Devil in disguise

Onida has launched its new campaign after putting the devil to rest. The
campaign is aimed at repositioning and rejuvenating the brand. The brand is
trying for a comeback after years of uncertainty which made this (once) iconic
brand lose its share in the market.

Onida's real problem is not branding but marketing. The brand desperately
needed break-through products and embrace new technologies. If the new ads
are any indication, the brand is moving in the right direction. The brand is trying
to launch products with new features, which is the right thing to do.

Regarding the brand campaign, Onida now has a new tagline- " Tum Ko Dekha to
ye design aya" meaning " Designed with you in mind ". The brand replaced the
iconic devil with a new-age couple as the protagonists.

Onida is now repositioning on the basis of “Customer Oriented Design". The

brand is saying that its products are designed with the new-age customer in
mind. The new tagline has nothing new in it and "customer-oriented" design
positioning is used by many brands before. In comparison with the classic
"Neighbor's envy, Owner's Pride", the new campaign falls short of expectation.
In the consumer durable space, it is the product features that attract the buyers
not the ads. If Onida can give technologically advanced products at reasonable
price, consumers will definitely try it out. But there are issues in such a product
oriented strategy. Most of the new features can be copied easily by the
competitors unless otherwise protected by patents. When Onida launches a DVD
player which plays micro-SD cards, other players are bound to follow. It is in this
scenario that branding becomes important. Onida needs to convince the
consumers that its products are better designed and technologically superior. It is
about managing perception .Features can be copied by competitors easily but
changing perception is a difficult task.
Onida needs to work hard on creating and nurturing new perceptions about itself
in the mind of the consumers.

Havells: Shock Laga Kya

Brand : Havells

Havells is one of the leading players in the Indian electrical products industry.
The company which was virtually unknown 5 years ago shot into limelight
through some clutter breaking campaigns in recent times.

Havells is a part of the Indian business group- QRG group. Established in 1958 as
a trading company, Havells came into existence in 1983. The company is now a
Rs 1600 crore company with presence in all major electrical categories.
Havells business is primarily focused on four key verticals.
Switch Gear
Lighting and Fixtures
Cables and
Electrical consumer deliverable.
What is interesting about Havells is their penchant for advertising. The company
had been making major investments in promotions and has been using the recent
IPL for brand building.

Havells shot into limelight with their campaign for Mini Circuit Breakers (MCB)
which is used to prevent short circuits. Most of the new homes/offices have it but
these products were never advertised.
Havells came out with a clutter breaking humorous ad for their MCB which
caught the consumer's attention. The product ad had the famous tagline “Shock
Laga Kya ".

The ad was a hit because of the creative execution. The positive response from the
consumers prompted Havells to invest heavily in brand promotions.
Another classic ad was for Havells CFL bulbs. The Rimpoche ad too was a highly
interesting ad for a dull product.
Havells followed its ad campaigns with a touchy mother son campaign for its
cable product range. People liked this ad very much because it conveyed the "
heat resistant " feature of the product very smartly and touchingly.

Havells also has been using the recent IPL for brand promotion. Whenever some
batsman gets out or when he scores a six, the two second message ad comes on
the screen " Shock Laga Kya"
This clutter breaking ads has significantly increased the brand familiarity and
liking of Havells brand. The brand is fighting very well established players like
Crompton Greaves, Usha,Anchor , Legrand etc. Havells scored over these brands
through its higher share of voice.

Regarding the branding campaign, Havells has been focusing more on product
advertising rather than building its corporate brand.
The ads does not have a common thread . The cable ad and the MCB ad and CFL
ads are all very different. Although it all comes from Havells, one cannot find a
common thread.
This is a problem for Havells as a corporate brand. The company has so far not
tried to bring in a corporate brand theme. Havells does not even have a tagline.

Now everyone associates Havells with the Shock Laga Kya tagline which is a
specific tagline for its MCB range.
There is doubt that these product ads are well crafted and has served the purpose.
But when we analyze the branding, Havells as a corporate brand has built strong
familiarity but no brand depth. So Havells stands to be identified for a single
product rather than as an umbrella brand.

One disadvantage of developing a common corporate brand theme is that every

Havells ad should then have to align with that common thread which may
constrain creative thinking. But a brand should own a distinct place in the
consumer's mind. Havells corporate brand right now does not have than distinct
space for it .
The logic of the current strategy is that through the product ads, Havells will gain
familiarity and thus brand equity. But the issue is about the brand personality.
A brand should have some core brand values and mantra which makes it unique
and distinct. This mantra has to be created by the brand and communicated to
the consumers. It is in this context that the current strategy of product ads
driving a corporate brand becomes ineffective.

Havells need not stop its product based advertising, what it can do is to develop a
brand mantra and a corporate tagline and when show the tagline in the product
advertisements. The individual product ads can retain their taglines like " Shock
Laga " . Thus Havells will be able to create a distinct corporate brand image
which will be highly beneficial in future.