FMCG WORKSHOP

SOURCES OF INFORMATION
 Daily news paper  Government data sources

 TV News and ads  Statistical Outline: Tata Services Ltd

 In house performance analysis  CMIE

 Sales reviews  Marketing Whitebook: Business World

 Distributor , retailer visits  Readership surveys

 Competitor distributors  NCAER

 Trade shows  Websites

 Purchase from information suppliers  Euromonitor International

 Syndicated research reports

 Customer and consumer advisory panels

CONSUMER INSIGHTS FROM BELIEF

 Insights or beliefs of the consumer are found

in:
1. Usage habits: Tooth brushes, Cadbury cocoa
2. Beliefs:
3. Desires
4. Practices
5. Attitudes
6. Problems
7. Frustrations
8. Issues

The consumer belief selected should be one

that is accepted by the consumer
THE CONCEPT

1. Mines consumer insights

2. The unique or important idea

3. Informs the benefit to the consumer

4. Shows why the product delivers this

BENEFIT

1. This is what the product delivers

2. Promise which solves an important desire or

frustration
3. Can be functional or emotional

4. Most important to know exactly how this can be

communicated to resonate with the consumer
REASON TO BELIEVE
A statement which underlines the reason why one believes the product can deliver

1. Unique ingredient: Cinthol, Toothpastes, Detergents https://www.youtube.com/watch?v=xFydzXFcA-Y

2. https://www.youtube.com/watch?v=MhaSAQ40a6g

3. Unique technology: Whisper driweave

4. Unique way of action : Gillette blades https://www.youtube.com/watch?v=1pz-AnLYbGQ

5. https://www.youtube.com/watch?v=wXgmMp2ZFtE

6. A test result : https://www.youtube.com/watch?v=WXkEr08ZTQE

7. A celebrity endorsement

8. An authority endorsement :

9. Consumer data

10. A challenge or money back

RELEVANCE OF RESEARCH
WHAT RESEARCH CAN DO FOR YOU
 Measures the reputation of the companyamong consumers,
government, media and academic world

 Using mathematical models , research can estimate sales of

new products and advertising required to maximise profits

 Consumer reactions to a new product still in conceptual

state

 Once the product is ready for the market research can tell
you how it compares with current offerings
WHAT RESEARCH CAN DO FOR YOU
 Research can tell what formulation, flavour,
fragrance and colour will appeal most to
customers
 Research can pick the best packaging from among
options
 Optimum positioning
 Can help define your target audience- gender, age,
affluence, lifestyle, media habits
 Factors which are most important in purchase
decisions
WHAT RESEARCH CAN DO FOR YOU

 What vocabulary customers use when speaking

about the category
 Best line extensions
 Can alert when customers are finding the
product is now less desirable
 Research can save time and money by reading
your competitors test markets
 Help determine the most persuasive promise
WHAT RESEARCH CAN DO FOR YOU

 Which of the available premiums or promos will

work best
 Does your ad say what you want to say
 Can pick out the best storyboard from among
options
THE LAUNCH
 What is the product/service idea

 Define the wants and needs of the target

market

 Develop, test and finalize the concept

 Segment the market

 Identify the target market

THE LAUNCH
 Develop the brand identity

 Develop the brand positioning

 Work out the economics of the brand position

 Choose a strong brand name

 Building brand awareness

THE LAUNCH
 Brand campaign or product campaign

 Brand language and territory of

communication

 360 degrees communication

 Brand authority through opinion leaders

KEY STAGES

1. Develop the initial “idea” or ‘concept”

2. Test the ‘concept”

3. Match the product closely to the “concept”

4. Test the product

5. Complete with a concept-in-use test

WHAT IS SEGMENTATION
 Companies cannot sell products that satisfy all people all the time

 Therefore can we break up markets into groups of consumers or

segments with distinct needs and wants?

 And can the company figure out which segments it can serve best?

 Are segments unique and distinct?

 The answer lies in keen understanding of consumer behavior which

is then tied in to strong strategic thinking
SEGMENTATION VARIABLES FOR CONSUMER MARKETS

 Geographic

 Demographic

 Psychographic

 Behavioral
GEOGRAPHIC
 Region: South, West, North, East: Cooler vs conditioner, freshly
brewed vs tea, chicory vs pure coffee , Assam vs Darjeeling)

 City: Class 1, Class 2, Metro etc

 Rural, semi-urban, urban

 Size of the market (RK Swamy BBDO: Number of consumers, means

they have, awareness levels, consumption behavior, availability of
marketing support infrastructure)

 Madison Town & Country framework: media reach, media vehicles,

media clusters
DEMOGRAPHIC

 Age
 Family size: Young single, young married, DINK,
Youngest child under six etc etc
 Gender: Male, Female
 Income
 Occupation
 Education
PSYCHOGRAPHIC

 Socio economic classification: A1 A2 B1 B2 C D E1 E2

 Lifestyle: culture-oriented, sports-oriented, outdoor-

oriented

 Personality: compulsive, gregarious, authoritarian,

ambitious
BEHAVIORAL
 Five roles in the buying decision: initiator, influencer,
decider, buyer and user

 Example of the pharmaceutical industry

 Men buy shaving systems and women buy cosmetics

 Others who play a role: mass media advertising,

shopkeepers, friends, children, relatives and friends

 What happens where perceived risk of buying is high?

BEHAVIORAL
 Occasions: Regular, special

 Benefits: Quality, economy, service and speed

 User status: ex-user, potential user, regular, first time

 Usage rate: Light, medium, heavy

 Loyalty status: None, medium, strong, absolute

 Readiness stage: unaware, aware, informed, interested, desirous, about-to-

buy

 Attitude towards the product: enthusiastic, positive, indifferent, negative,

hostile
TARGETING MARKET SEGMENTS
 Single segment concentration

 Selective specialization

 Product specialization

 Market specialization

 Full market coverage

BRAND IDENTITY AND POSITIONING
 What is the brands particular aim and vision

 What makes it different

 What need is the brand fulfilling

 What is its permanent crusade

 What are its values

 Competence and legitimacy

 Signs that make it recognizable

QUESTIONS THAT DEFINE BRAND

IDENTITY
SOURCES OF BRAND IDENTITY ARE…..

 The product
 Geographical roots
 The brand name
 Historical roots
 The brand characters
 Brand’s creator
 Visual symbols and
logotypes
 Advertising
THE PRODUCT

 The product is the first source of product identity

 The brand reveals its uniqueness through the product

 The values the brand injects into production,

distribution etc are all embodied in the brands most
symbolic products
THE PRODUCT
 Danone (Health, Pleasure,
Hedonism, opulence-Danette)
vs Cadbury (Pleasure)

 Benetton example: Essence is

cultural tolerance, brotherhood
and friendship. Models used
from all over the World

 Nivea’s blue box and white

cream.
BRAND NAMES
 Often reveals brands intention

 Often chosen to convey subjective or objective

characteristics of the brand (Steelcase, Pampers,
Tums)

 Apple: Steve Jobs avoided standard names

like International Computers but chose Apple.
Unconventional nature of the new brand. Conveyed
fun. Refusal to idolize or fear computers.
BRAND NAMES

 Orange: Same as above

 Amazon: Conveys strength

 Rexona- harsh but conveys efficient

cleaning
BRAND CHARACTERS
 Emblems are a brand’s
capital equity

 Emblems symbolize brand

identity through a visual
other than the brand
name

 Functions: identify and

recognize, a guarantee,
durability, differentiate
and personalize
VISUAL SYMBOLS AND LOGO TYPES
 Reflect brand culture,
values and personality

 These are consciously

designed with this in
mind

 When they change

these logos they change
the company essence
GEOGRAPHICAL AND HISTORICAL ROOTS

 Identity born out of an  Air France- France

early founding act of
the brand.  Barclay’s bank- UK

 Products, channels,  Apple has acquired

communication and Californian culture
places
 IBM is East Coast
 Patek Philippe-
Switzerland
BRAND’S CREATOR
 Richard Branson-
Virgin

 Vijay Mallya-
Kingfisher

 Dhirubhai Ambani-
Reliance Industries

 Kurien- AMUL
ADVERTISING- CONTENT AND FORM

 Pidilite ads

 Vodaphone

 Lifebuoy

 Nirma
BRAND POSITIONING
POSITIONING OF A BRAND
Brand for whom
Brand for what

The brand why The brand against whom

BRAND FOR WHAT……
This refers to the brand promise and the consumer benefit

1. Orangina has real orange pulp

2. The Body Shop uses the most natural and safe ingredients and
is ethical and friendly

3. Twix solves hunger

4. Volkswagen is reliable
BRAND FOR WHOM……
This refers to the target

1. Schweppes is the drink of the refined

2. Snapple is the soft-drink of the adults

3. Pepsi is the drink for the young

BRAND WHY……

This refers to the reason

1. Promise has clove oil

2. Dove has 25% moisturizing cream

3. Whisper has a proprietary technology which

prevents wetness
BRAND AGAINST WHOM……

This refers to source of business

1. Levi Strauss Signature will target users of value

priced jeans and lower end premium jeans brands

2. Titan watches will get business from consumers

who are looking for more than just a watch and are
currently using Allwyn and HMT
CRITERIA TO EVALUATE AND CHOOSE A POSITION

 What is the consumer insight behind this positioning

 Are the products current looks and ingredients compatible with

this positioning

 What is the size of the market in this positioning

 Is this a believable position

 Does this capitalize on the competitors durable weakness

 What financial investments does this call for

CRITERIA TO EVALUATE AND CHOOSE A POSITION

 Is this positioning specific and distinctive

 Is this sustainable against imitation from competition

 Does this position also allow a second choice if we fail

 Does this justify a price premium

 Is there growth potential under this positioning

BRAND POSITIONING STATEMENTS
To _______________________, _____________, is
the
(Target group, users/needs) (Brand Name)

brand of __________________________________,
(Competitive framework)

that
_________________________________________,
(Point of differentiation benefit)

because
________________________________________.
(Reason why)

The brand character is

_____________________________
(Brand character)

TYPICAL BRAND POSITIONING

STATEMENT
GATORADE: To active athletes of all ages and
performance levels, who love to compete and rely
heavily on liquid replenishment, to stay at their
competitive best, GATORADE is the brand of thirst-
quencher/body replenisher, that best satisfies
thirst and replenishes so one can keep achieving
ones personal best, because it’s the only brand
endorsed/used by all major US pro-sports (NBA,
NFL, NHL, MLBB) and Gatorade’s well known,
athletically proven formula. The brand character is
fiercely competitive, athletic, intense, unstoppable,
popular
BRAND POSITIONING
STATEMENTS
FRITO-LAY: To shoppers and consumers,
Lay’s is the brand of fresh tasting and
perfectly crisp chips that shares the
moment because it has been America’s
favorite snack for more than 75 years. The
brand character is celebratory, happy,
home grown, always there for the family

BRAND POSITIONING
STATEMENTS