CaseStudy.co.in» Branding

Brand “INDIA”

maddy — Mon, 19 Jul 2010 05:12:11 +0000

Principles of branding apply in equal measure to countries as they do to corporations. But methods are different. Countries will compete daily with neighbors or block regions for tourism, inward investment and export sales. There’s only so much business that can go around. Those countries that start with an unknown or poor reputation will be limited or marginalized. They cannot easily boost their commercial success.

Consequently, they will often languish at the bottom of the ladder of influence. No voice or even worse, they are the butt of jokers at every regional summit similarly, when the reputation is clear and positive such as with Germany (and that’s despite two world wars), products made in that country carry an extra aura. The brand equity they possess opens doors and wins contracts. Creating a branding program for a country demands an integration policy that most countries do not possess- the ability to act and speak in a coordinated and repetitive way about themes that are the most motivating and differentiating a country can make.

Ireland and Scotland are widely acknowledged as having created country brands that punch far above their natural weight. In the case of Scotland for instance they even used an advertising line called ‘Scotland the Brand’ (replacing Scotland the brave), also, the Scottish Culture Board has sent Hollywood a training course in Scottish dialect to make sure that authentic accents are the only ones we hear on the big screen (the end of ‘Scottie’ from Star Trek perhaps).

The benefits of a consistent and professional country branding can be observed in every region- they include the ability to win more investment business because the country image says the right things about taxation, labor skills, safety, the environment, political stability plus the chance to apply a ‘made in’ label because it will positively aid the sale of a product in an overseas market.

Pacific Ocean-The Indian Rural Market
It’s a Pacific Ocean out there!
Just look at these figures of India’s rural power: “If the populations of the U.S., Japan and the Eurozone are added, the total would still be a lower than a third of India’s population of 1.5 bn. Importantly, about 65% or 135 million households are in rural India where the opportunities are enormous.” (Business Standard’s The Smart Investor, Feb 16, 2009)

On an average, the per capita income in rural India has grown by 4% annually or by 50% in ten years. These rural homes need personal care products (over 50% of rural India has yet to use a toothbrush), skin creams, soaps, shampoos and detergents. They also need simple over-the-counter medicines and balms against aches and pains, tummy upsets, colds and fevers. A profit of just Rs 10 per household in six months would mean Rs 1.35 bn (US$27 million).

Thus looking at the opportunities which rural markets offer to the marketers it seems that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage.

Our marketing campaign should be targeted to promote foreign investments in vastly untapped rural markets.
Let us take a look at the deep levels of Indian rural market and the potential ways to conquer it.

Attractiveness of rural market

In our marketing campaign we should include all the below salient points
1.Large Population
Table 1: Rural Population Statistics Population Number of Villages Percentage of total villages
Less than 200 114267 17.9
200-499 155123 24.3
500-999 159400 25
1000-1999 125758 19.7
2000-4999 69135 10.8
5000-9999 11618 1.8
10000 & above 3064 0.5
Total 636365 100

2. Rising Rural Propensity:
INCOME GROUP 1994-95 2000-01 2006-07
ABOVE RS. 100,000 1.6 3.8 5.6
RS. 77,001-100,000 2.7 4.7 5.8
RS. 50,001-77,000 8.3 13.0 22.4
RS. 25,001-50,000 26.0 41.1 44.6
RS.25,000 & BELOW 61.4 37.4 20.2

3.Growth in consumption:
Spending pattern (Rural Household’s in Rs.)
ITEM % RICH POOR AVERAGE
FOOD ARTICLES 44 147 73 95
TOILETRIES 20 67 33 43
WASHING MATERIAL 13 43 22 28
COSMETICS 10 33 17 21
OTC PRODUCTS 4 13 6 9
OTHERS 9 30 15 19
TOTAL 333 166 215

Average rural household spends on consumables excluding food grains, milk & vegetables are Rs. 215/-.

4.Life style changes:
Income vs. usage of packed consumer goods (% of household using)

Goods MONTHLY HOUSEHOLD INCOME (RS.)
UP TO 350 351 – 750 751 – 1500 1501 +
WASHING CAKES/BARS 60 78 86 91
TOILET SOAPS 57 72 89 93
TOOTH PASTE/POWDER 22 36 65 85
TALCUM POWDER 20 25 41 63
TEA (PACKAGED) 22 30 48 64

5.Life cycle advantage:
PRODUCT URBAN MARKET GROWTH
RATE % RURAL
Popular soaps Maturity 2 Growth
Premium soaps Late growth 11 Early growth
Washing powder Late growth 6 Early growth
Skin creams Maturity 1.1 Growth
Talcum powder Maturity 4 Growth

6.Market growth rates higher: Growth rates of the FMCG market and the durable market are higher in rural areas for many products.
7.Rural marketing is not expensive: . According to one research promotion campaigns which can reach millions, costs twice as much in urban area as compared to rural markets.

8.Remoteness is no longer a problem:
The rural distribution is not much developed for the reasons,
• Lack of proper infrastructure such as all-weather roads, electrification and sanitation, and
• Lack of marketer’s imagination and initiative
Marketers have so far, failed in analyzing the rural side and exploiting rural India’s traditional selling system- Haats & Melas.Their near obsession with just duplicating the urban-type network and that too with very limited success, has kept them blind to the potential of these two outlets

Rural Consumer Behaviour
Villagers react differently to different products, colours, sizes, etc. in different parts of India. Some of the few cultural factors that influence buyer behaviour are:
1. Product (colour, size, design, and shape):
2. Social practices: There are so many different cultures, and each culture exhibits different social practices.
3. Decision-making by male head: The male in Indian culture has always been given the designation of key decision maker.
4. Changes in saving and investment patterns From gold, land, to tractors, VCR’s, LCV’s

MARKETING STRATEGIES TO CAPTURE RURAL INDIA
MNCs targeting Indian rural market should be made aware of the following strategies to capture rural markets
• SEGMENTATION OF RURAL MARKET
The organization can do the following thing to start with:
 Focus on select markets.
 Focus on select villages.
• BY COMMUNICATING AND CHANGING QUALITY PERCEPTION
• BY PROPER COMMUNICATION IN INDIAN LANGUAGE
• UNDERSTANDING CULTURAL AND SOCIAL VALUES
• PROVIDING WHAT CUSTOMER VALUE FOR MONEY
• PROMOTING PRODUCTS WITH INDIAN MODELS AND ACTORS
• BY ASSOCIATING THEMSELVES WITH INDIA
Nokia has designed a new cellular phone 5110, with the India tri-colour and a ringing tone of “Sare Jahan se achcha”.
BY TALKING ABOUT A NORMAL INDIAN
DEVELOPING RURAL-SPECIFIC PRODUCTS
BY GIVING INDIAN WORDS FOR BRANDS
Like LG has used India brand name “Sampoorna” for its newly launched TV.
BY ACQUIRING INDIAN BRANDS
BY EFFECTIVE MEDIA COMMUNICATION
The traditional media include melas, puppetry, folk theatre etc. while the modern media includes TV, radio.
BY ADOPTING LOCALISED WAY OF DISTRIBUTING: They have to reach the “local Paan wala, Local Baniya” only then they can succeed
Using MELAS and haats to showcase products
Product Strategies
• Small unit packing
• New product designs
• Sturdy products
• Utility oriented products

Investment Promotion Techniques
The promotion activities should be designed to accomplish three different objectives:
* to improve a country’s image within the investment community
as a favorable location for investment (image-building activities);
* to generate investment directly (investment-generating activities); and
* to provide services to prospective and current investors (investment-service activities).

Image-building and investment-service activities have as their ultimate objectives the attraction of more investment. But their immediate goals are different, and, it could be argued, appropriate measures of effectiveness are different.
In the course of our research ,we identified at least twelve different promotional techniques that were in use by at least some of the countries that we studied, as follows:
1. Advertising in general financial media.
2. Participating in investment exhibitions.
3. Advertising in industry- or sector-specific media.
4. Conducting general investment missions from source country to host country or from host country to source country.
5.Conducting general information seminars on investment opportunities.
6. Engaging in direct mail or telemarketing campaigns.
7. Conducting industry- or sector-specific investment missions from source country to host country or vice versa.
8. Conducting industry- or sector-specific information seminars.
9. Engaging in firm-specific research followed by “sales” presentations.
10. Providing investment counselling services.
11. Expediting the processing of applications and permits.
12. Providing post investment services.

Mela-Celebrate Chaos
• A 360 degree campaign “Mela-Celebrate Chaos” should be designed, depicting the potential of rural India.
• “Orderliness in Chaos” should be the main theme of the campaign.
• Adaptability and efficiency should be the shown as the main attributes of brand India.
NRIs should be used as local brand advocates, by involving them in planning stage of marketing campaign.
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Branding India for Health and Spiritual Tourism

maddy — Mon, 12 Jul 2010 18:44:32 +0000

Indian health care industry has been going through a development phase for past many years and the quality along with the magnitude of the health services has increased manifold. The enhancement in the encompassing levels of all the required parameters of Health Care Services in India has started developing the country in to a natural choice for medical tourism and strategically synchronized efforts are actually excelling the process. But, can we also look towards the otherwise established art of Yogic Sciences led Tourism with similar orientation?
‘Health is Wealth’ is an age old proverb and has an immense relevance when translated in to the productivity of nations and its impact on the overall societal harmony of this world. It is time for the researchers, practitioners, policy makers, marketers especially in the field of tourism development to realize the aspect and capitalize upon the health needs of the people from whole of the world and compliment tourism with Yoga led experience related to preventive and curative health care. The natural reason not only lies in the command and the expertise India has and can boast of in the field of Yogic Sciences but also is related to the cost effectiveness it may offer along with the replicative effect it may offer as practically is experienced by one of the authors of this paper who not only is learning Yoga here but will also benefit many others back at California and several parts of her country.
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How to Build a Personal Brand

maddy — Sat, 26 Jun 2010 04:20:47 +0000

With everyone and their mother trying to make a name for themselves, it’s harder and harder to be heard through all the noise. To do so you need expert help, and for top tips there are few better qualified to help than entrepreneur and uber-blogger Guy Kawasaki. & seven other branding gurus.

Movie Marketing in India : A Case Study

newuser — Sun, 20 Jun 2010 11:20:40 +0000

4Ps concept applied on the movie industry as a whole
PRODUCT
For a movie to selected by the audience on the basis of the content, it needs to be clearly identifiable in its marketing — genre, stars, story, special effects, style all need to be presented aptly. A movie product is the intellectual property that can be ported to a variety of deliverables: theatrical exhibit, non-theatrical exhibit, video tapes, DVDs, CDs of the soundtrack, collectible editions, television and cable broadcast, Internet-served etc. Then there is merchandising such as clothing, toys, games, posters. Another product dimension is that of franchise rights, endorsements, product placements and a host of offshoots that are bought and sold, leased and rented. The movie business is one of the most complexes in the communications industry because of its creativity, its diversity and its continual explosions of technological delivery options.
PRICE
At first glance, pricing in the movie industry seems very standardized. At any multiplex is cinema hall, a movie ticket costs the same for all movies, doesn’t it? But if we look into the broader definition of the movie product just defined, then the prices fluctuate widely.
A distribution contract can be structured in many ways that result in very different returns for the producer, the key creative talent, and even the distributor. Elements that are negotiated include:
 Theatrical release schedules
 Territories and market segments
 Revenue splits, percentages and order of payment
 Promotion budgets (P&A)
Apart from these pre consumer stage pricing differences, we see a wide range of pricing structures such as theatrical tickets, group 4-wall rentals, title rentals, title sales, special releases, subscription services, festivals, downloads, delayed broadcasts, pay-per-view, licenses, bundled deals, cable channels and now we have movies and games on cell phones, on iPods — on electronic billboards.
Scriptwriters sell to producers. Producers sell to investors and distributors. Distributors sell to exhibitors and chain stores and Internet dealers. Retail stores sell to communities (groups) and individuals and families. Families “sell” to friends and more family. Even word of mouth has a price.
Pricing has become a global issue. The release of a DVD has always been timed to protect the theatrical revenue model. But with piracy at record levels globally, a variety of pricing — and timing — strategies are being tested, like pricing the DVDs very cheaply.
PLACE
With the ever-inventive entrepreneurial energy in the entertainment world, people find venues for entertainment sales not only through traditional theatres and broadcast, but on street corners, in homes, over the Internet, over phones (caller tunes), through clubs etc. Options for delivery of the movie product are exploding: movies, games, music, news, and educational content. Distribution takes place through theatres, rental stores, sell-through stores, catalogues, non-theatrical groups, the Internet, even cell phones and the latest new media gadget.
PROMOTION
Promotion is a powerful marketing tool, not only during the premier of a new product, but throughout its lifecycle. Producers create the end-product for the consumer, but they seldom market that product directly to the consumer. They market their story to investors and distributors. Distributors market to exhibitors, retailers and sub-distributors. The theatre exhibitors, retailers, store clerks, and Internet strategists market to the end consumers. And then, to top off this complex stew, some consumers even market to other consumers – their family, friends and co-workers.
… click here to read the entire post

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Political Marketing in 2008 U.S. Presidential Primary Elections

admin — Tue, 15 Jun 2010 13:54:29 +0000

marketing has become a more and more important tool in politics in general. In order to campaign successfully – and become the President-elect – in the U.S. Presidential Election, marketing is indispensable. This lead to enormous amounts of money spent on marketing. The aim of this research is to contribute to existing knowledge in the field of political marketing through the analysis of how marketing is done throughout a political campaign. The 2008 U.S. Presidential Primary Elections, together with a few key candidates have served as the empirical example of this investigation.
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Retention of the restaurants’ customers

admin — Tue, 15 Jun 2010 13:47:16 +0000

customers come back to the restaurants, what influence their decisions. During the research we formulate 2 hypotheses. Hypotheses 1 – most reasons of the restaurants’ customers retention can be associated with restaurants’ service elements adapted from the 8Ps of Service Marketing Model. Hypotheses 2 – retention and loyalty have unidirectional relation – loyalty means retention of the customer, but retained customer doesn’t mean loyal.
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Nestle’s Maggi : A Case Study

newuser — Sun, 06 Jun 2010 09:48:57 +0000

Nestle India Limited is the market leader in Indian Noodle Market with it’s Maggi Brand of Noodles which was pioneer brand launched in 1983 in the packaged food market of India. It took the challenge and established Maggi in Indian market considered to be conservative and typical about food consumption. It appropriate realization of target segment, effective positioning and effective promotion and sales made Maggi to Noodles in India as Xerox it to photocopier … click here to know more of maggi

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Advertising Regulation And Standards: The Indian Scenario

maddy — Sun, 06 Jun 2010 05:52:04 +0000

Advertising does not function in a vacuum but in a market environment where several forces like consumer needs, business interests and government regulations are at work. It is a powerful force in terms of its persuasiveness and functions a critical social role. Moreover the high visibility and pervasiveness, it generates criticism and controversy. Much of this controversy springs from the fact that advertising is used more as a persuasive communication tool thereby creating serious impact on the tastes, values and lifestyles of society.
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MediMix Soap Case Study

newuser — Fri, 04 Jun 2010 23:58:06 +0000

The case deals with the re-launch of Medimix and its reconnect with the consumers in the North, West and East markets of India. Medimix has been a south centric brand right since its inception. The brand had stayed away from the media for almost two years…click here to read how MediMix achieve its goal

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Hero Honda’s rise to the top: ‘Fill it, shut it, forget it’

maddy — Fri, 04 Jun 2010 12:40:23 +0000

Hero Honda is a joint venture between an Indian bicycle manufacturer and a global leader in small-engine technology. This venture reaped the benefits of an enormous Indian population in need of affordable transportation, one having still modest but growing buyer power.

In 1983, Hero Cycles of India signed an agreement with Honda Motor Corporation, forming Hero Honda. This agreement, between an Indian firm that got its start making bicycle parts, and the world’s largest motorcycle manufacturer, marked Honda’s entrance into the Indian market for motorized two-wheeled transportation. Read more…