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October 2012

MARkezine ezine

Marketing magazine of School of Inspired Leadership

FMCG Industry Moving along with Fast Moving Consuner Goods “With the variety on offer, customers have little to worry about issues like inflation. Life's not so blissful for the players though, and inflation is just the tip of the iceberg� says Savreen Gadhoke of B&E.


October 2012

TEAM MARKezine 's Doddle Dear Readers, With a long battle won at last, the government has been able to allow FDI in multi and single brand retail. FDI in other sectors like insurance, pension and aviation are more than welcome in India. By allowing big players to invade India, it seems like a second revolution after liberalization in 1991 which gave the Indian economy a high growth rate irrespective of the fact that even at that time many of the political parties raised serious objections. Even today the entire nation has mixed opinions about the impact of such a decision. The future will tell us, whether the move is meant to help the poor Indian farmer or the Indian consumer or to fuel more foreign currency into the economy to offset the petrol price rise or is it just a play of politics. What we need to think about is that are we dependent on such timely foreign funded revolutions to act as a catalyst to pump up the growth rate of our economy? Well, No! We had an inspiring leader who created the Taste of India and made the poor villagers proud owners of it. Dr. Verghese Kurien (1921-2012), the founding Chairman of the Gujarat Co-operative Milk Marketing Federation (GCMMF) was behind the success of the Amul Brand of dairy products. Today, India faces a dearth of such dynamic leaders who can create a great impact on lives in the rural sector and build multinationals. We, the students of the School of Inspired Leadership family pay tribute to the father of the white revolution in India whose contribution to the farmers' society has transformed millions of farmers’ lives. ŠSCHOOL of INSPIRED LEADERSHIP

1 | MARKezine


October 2012

One step in the right direction is followed by more. The news that Companies Bill 2011 will make CSR mandatory for companies is another such step. In a land of diversity, like ours, we also have mixed views about whether it needs to be made mandatory of not. In this edition of Markezine we have an insightful article focusing on the FMCG in rural India. It examines the important growth drivers for Indian FMCG industries, its impact on the Indian economy and growth prospects. We have an interesting article on ambush marketing done by HUL. We have also focused on how loyal is today’s FMCG customer. As always, we try our best through our efforts to bring in excellence in our work with a hope that we will all learn and grow together. Happy Reading! Team MARKezine .........................................................................................................................................................................

THE MARKezine TEAM Editors Ishwarya Lakshmi | Sabharish Koruturu | Sandeep Singh | Shivaraj Ganesh Creative Design Karan Chhabra | Nikhil Girhotra | Sheeza Shakeel

ŠSCHOOL of INSPIRED LEADERSHIP

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Contents October 2012

PAGE NO.

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FEATURED ARTICLES

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FMCG in Rural India Important growth drivers and the growth in the rural sector Sarvesh Pingulkar, School of Inspired Leadership

5

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The Dirty Picture in FMCG Ambush marketing by HUL Kushagra Jhalini, School of Inspired Leadership

16

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“Butterfly Consumers” of the FMCG Sector Loyalty in the FMCG sector Sandeep Singh, School of Inspired Leadership

19

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4 Ps Unleashed 4 Ps for Dove Sarvesh Pingulkar, School of Inspired Leadership

24

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Dr. Verghese Kurien Amulya person Lost Shivraj Ganesh, School of Inspired Leadership

28

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©SCHOOL of INSPIRED LEADERSHIP

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FMCGIN RURAL INDIA

October 2012

Sarvesh Pingulkar Business Leadership Program What are FMCG goods? FMCG is an acronym for Fast Moving Consumer Goods (also

Care, Marico Industries, NIRMA, Coca-Cola, Pepsi and others.

named as consumer packaged goods), which refers to goods that we buy on daily basis for frequent consumption and these goods have high turnover. The goods in this category include all consumables (other than groceries/pulses) like toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged food, household accessories and certain electronic goods.

What is rural market? The FMCG sector is divided into two distinct segments –

• The premium segment, which caters mostly to the

Major players in this sector

urban upper middle class.

include HUL (Hindustan Unilever

• The popular segment with

Ltd.), ITC (Indian Tobacco

prices as low as 40% of the

Company), Nestle India, AMUL,

premium segment. This

Dabur India, Asian Paints

segment is further subdivided

(India), Cadbury India,

into Mid-priced segment

Britannia, Procter and Gamble

(semi-urban) and Low priced segment (mass rural market).

(P&G) Hygiene and Health ©SCHOOL of INSPIRED LEADERSHIP

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October 2012

Hence, the rural market, present at the bottom of the pyramid, is characterized by presence of poor population, low median income, poor

The important growth drivers for Indian FMCG industry in near future will be–

infrastructure and agrarian (not

• Availability of key raw

industrial) activity.

materials, cheaper labor costs &

But in recent past, this perception has changed because of the increasing per capita income of the rural

presence across the entire value chain, giving the Indian companies a key competitive advantage.

population. The villages that

• Rise in per-capita consumption

come under the sphere of

and disposable incomes

developing metros and

(specifically in rural area)

neighboring cities are

enabling the companies to focus

responding to the overall

on premium brands.

development. Also, growing

• Increase in category

size of educated population, rising per capita disposable income, along with the higher aspirations of people have transformed the rural market into a place with immense growth possibilities. This change has also impacted the growth drivers of FMCG industry, which now focus on ©SCHOOL of INSPIRED LEADERSHIP

penetration in rural markets with strong distribution channels. Investment in this sector stocks also attracts investor’s attention because the demand for an FMCG product is throughout the year.

• Constant innovation in existing products from customer feedback. 6 | MARKezine


October 2012

FMCG Industry - India 2012 (in Billion Rs.) _ AC Nielson Report

largest sector in Indian economy (Rs.1830 billion) and

1500

Rural segment forms 1/3rd of the total FMCG sales in India. The report by AC Nielson on Indian FMCG industry shows

1000

500

that FMCG sector will grow at 15-20% per year and reach the size of Rs. 6000 billion by 2020. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care and hot beverages, along with long term growth categories like food and dairy. ŠSCHOOL of INSPIRED LEADERSHIP

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2000

The FMCG sector is the fourth

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Impact of Rural FMCG segment on Indian Economy –

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.................................................................................... ....................................................................................

0

2010

2011

2012

Industry Size Urban market Size Semi Urban abd Rural Market Size

The growing spending of rural and semi-urban segment towards FMCG products is mainly responsible for the growth in this sector, asking the manufacturers to deepen their concentration on high sales volumes. As per the analysis by 7 | MARKezine


October 2012

ASSOCHAM, Companies like

HUL and Dabur India get 50%

in urban markets

of their sales from rural India.

Currently, in urban India, rising

Slowing consumption rates

While Colgate Palmolive India

disposable income & are leading

and Marico constitute nearly

to “value vaulting” wherein,

37% respectively, however,

after a threshold level of

Nestle India Ltd and GSK

penetration, consumers move

Consumer drive 25% of sales

up the value chain, rather

from rural India.

than increase consumption. Hence, companies are looking

FMCG: Urban vs Rural segment growth - 2003 - 2012

towards the rural segment for

0

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5

.........................................

18 18 .......................................................................................... 20 16 14 17 10 15 .......................................................................................... 13 14 10 10 .......................................................................................... 3 ..........................................................................................

2003 2005 2007 2009 2011 2012 -5 ..........................................................................................

-8 -10 ..........................................................................................

Urban

Rural

Why focus on rural markets? With the presence of ~12.2% of the world’s population in the indian villages the Indian rural FMCG market is something no one can overlook. ©SCHOOL of INSPIRED LEADERSHIP

higher sales volumes. Also, the urban population is developing a craze for organic products in the FMCG sector and since there will not be a large number of FMCG organic products in the near future, this industry will have to look towards rural markets (ASSOCHAM report’11).

Rising rural markets

in the rural and semi-urban areas and the FMCG market penetration is currently about 2% in general as against its 8 | MARKezine


October 2012

total growth rate of about 8%. The Indian rural market with its vast size and demand base offered a huge opportunity that FMCG companies cannot afford to ignore. With 150 million households, the rural population is nearly three times the urban population.

recently announced has a cut of 4% in excise duty to fight with the slowdown of the Economy. This announcement has a positive impact on the industry. But the benefit from the 4% reduction in excise duty is not likely to be uniform across FMCG categories. Due to the recent waiver of loans, national rural employment guarantee scheme and increasing minimum support price, disposable income in rural India has been increasing.

Foreign Direct Investment

(FDI)

Governmental Policy

Government has enacted policies aimed at lifting of the quantitative restrictions, reducing excise duties, FDI and food laws resulting in an environment that fosters growth. The government ©SCHOOL of INSPIRED LEADERSHIP

Automatic investment approval (including foreign technology agreements within specified norms), up to 100% foreign equity is allowed for most of the food processing sector except malted food, alcoholic beverages and those reserved 9 | MARKezine


October 2012

for small scale industries (SSI). There is a continuous growth in net FDI Inflow.

addition to easy availability of

Dairy Products - India is the

Vast Market opportunities

raw materials.

Sectoral Opportunities

Rural India accounts for more

largest milk producer in the

than 700 Million consumers or

world, yet only around 15% of

70% of the Indian population.

the milk is processed. The

The working rural population is

organized liquid milk business is

approximately 400 Million. And

in its infancy and also has large

an average citizen in rural India

long-term growth potential.

has less than half of the purchasing power as compare to his urban counterpart.

Export - “Leveraging the

Packaged Food - Only about 10-12% of output is processed and consumed in packaged form, thus highlighting the

Cost Advantage”

huge potential for expansion of

Cheap labor and quality product

this industry.

& services have helped India achieve a cost advantage over other countries. Even the government has offered zero import duty on capital goods and raw materials for 100% export oriented units. Multinational companies outsource their product requirements from

Oral Care - The oral care industry, especially toothpastes, remains under penetrated in India with penetration rates around 50%. With rise in per capita incomes and awareness of oral hygiene, the growth potential is huge.

their indian branches. It

Beverages - Indian tea market

provides a cost advantage in

is dominated by unorganized

©SCHOOL of INSPIRED LEADERSHIP

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October 2012

players. 50% of the market is captured by unorganized players highlighting high potential for organized players.

HUL is a major established player in rural markets. Project Shakti started in 2001 with the objective of capturing the media-dark regions by turning

RURAL MARKETING BY FMCG SECTOR Few of the FMCG companies had understood the importance of the untapped rural market and explored it with innovative techniques. 1. Hindustan Unilever

rural women into direct-to home distributors of HUL’s mass-market products, after analyzing the slowing consumption patterns of urban markets. This project is also aimed at increasing the company's rural distribution reach.

Limited (HUL) – Project Shakti

The Shakti Entrepreneurs or volunteers (Shakti Amma) invest Rs. 20000 initially ©SCHOOL of INSPIRED LEADERSHIP

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October 2012

to buy products and then sell

this initiative, HUL has been

the products door-to-door and

successful in maintaining its

earn 10-15% margin on the

distribution reach advantage

products. This program helped

over its competitors.

the women increase their income from Rs. 25/day to Rs. 100-120/day. A support program, Shakti Vaani, trains people in schools and villages on sanitation and hygiene.

2. ITC Limited - Project e-Choupal ITC designed the e-Choupal model to tackle the challenges posed by fragmented farms, weak infrastructure and the

The main advantage of the

involvement of numerous

Shakti program for HUL is

intermediaries, among others.

having more firm feet on the

Appreciating the significance of

ground. Shakti Ammas are able

intermediaries in the Indian

to reach far flung areas, which

context, 'e-Choupal' leverages

were economically unviable for

Information Technology to

the company to tap on its own,

virtually cluster all the value

besides being a brand

chain participants, delivering

ambassador for the company.

the same benefits as vertical

Currently the Shakti network is

integration does in mature

of 55,000 Ammas covering

agricultural economies like the

140,000 villages across 15

USA.

states reaching 3 m homes. The long term aim of the company is to have 100,000 Ammas covering 500,000 villages and reaching 600m people. With ŠSCHOOL of INSPIRED LEADERSHIP

'e-Choupal' ensures world-class quality in delivering all these goods & services through several product / service 12 | MARKezine


October 2012

specific partnerships with the leaders in the respective fields, in addition to ITC's own expertise. While the farmers benefit through enhanced farm productivity and higher farm gate prices, ITC benefits from the lower net cost of procurement (despite offering better prices to the farmer) having eliminated costs in the supply chain that do not add value. Launched in June 2000, 'e-Choupal', has already become the largest initiative among all internet-based interventions in rural India. This initiative, which has covered over 70,000 hectares, has a multiplier impact and reaches out to over 1.6 million farmers. 3. Proctor and Gamble Project SB P&G is trying hard to enter the

They have created a character “Sangeeta Bhabhi” to hardsell their products in rural India. The personality of an educated married woman was conceived to push P&G's leading brands, Tide and Head & Shoulders as a dual proposition called 'kamyab jodi' in rural areas of Uttar Pradesh. The company is planning to roll the initiative further to cover nearly 5,000 villages across the state of UP.

Growth prospects of FMCG in rural India –

battle on rural FMCG market,

In the future, planned growth of

which will give them a base for

rural India will help companies

their vast product portfolio.

leverage their efforts.

©SCHOOL of INSPIRED LEADERSHIP

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October 2012

Creating Buying Power • Access to credit • Income generation

Shaping Aspirations • Consumer education • Sustainable development

Communication Links • Distribution systems • Communication Links

Tailoring local solutions • Targeted product develpment • Bottom - up innovation

Increased focus on farm sector

if the companies are able to

will boost Rural income, hence

convince the rural consumers to

providing better growth

buy branded, new generation

prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from the growing demand in the market. Because of the current low per capita consumption of almost all the products in the rural areas of India, FMCG companies have immense possibilities for

products, they would be able to generate higher growth in the near future. Surely, the rural income will rise in future, boosting purchasing power in the countryside. But it will test innovative approach, targeted product development, product access and robust distribution channels offered by FMCG companies. References: Google Images

growth. Hence, ©SCHOOL of INSPIRED LEADERSHIP

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The Dirty Picture In FMCG October 2012

Kushagra Jhalini Human Resources Leadership Program

Traditionally, Ambush Marketing

certainly remember how Nike

refers to a company's attempt

attempted to ambush Adidas

to capitalize on the goodwill,

during 2012 Olympics). But

reputation and popularity of a

Indian advertising industry,

particular product/event by

being a powerhouse of think

creating an association with it,

tanks who run their imagination

without any official authorization

beyond traditional boundaries,

or consent of the necessary

have utilized ambush marketing

parties.

in the most creative means,

Ambush marketing has traditionally been the bread and butter for companies craving for that extra attention during

including advertising campaigns for companies belonging to FMCG as well as aviation industry.

promotion of major sporting

Procter and Gamble began an

events (most of us would

aggressive advertising

ŠSCHOOL of INSPIRED LEADERSHIP

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October 2012

campaign, which seemed almost

spellbound! Hindustan Unilever

ubiquitous as the company

certainly proved that apart from

deployed its billboards at

cricket, timing can be

multiple locations (including

immensely important in FMCG

advertising space available on

industry as well. It was a

bus panels as well) for about a

mind-boggling effort by

couple of weeks or so. Their

Hindustan Unilever to grab a

billboard advertisement only

greater pie of the market share.

conveyed: “A mystery shampoo.

This campaign spearheaded by

Eighty percent women say is

Hindustan Unilever attracted

better than anything else”,

tremendous attention from the

without even mentioning that

general public, advertising

the advertisement is about

industry and the competitors

Procter and Gamble’s Pantene

alike.

shampoo.

It was, indeed, a watershed in

But just before Procter and

the Dove saga. And that’s what

Gamble was about to reveal the

happened to Procter and

mystery, Hindustan Unilever

Gamble’s gamble.

deployed its billboards adjacent to those deployed by Procter and Gamble in most of the

(References: Wikipedia.org, gala-marketlaw.com)

cases, which stated: “There’s no mystery. Dove is the number one shampoo!!” We don’t know about Procter and Gamble, but this campaign certainly left the target audience ©SCHOOL of INSPIRED LEADERSHIP

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The “Butterfly Consumers” of the FMCG sector

October 2012

Sandeep Singh Marketing Leadership Program

The demand created by

create, but also and maintain

fast-moving consumer goods

loyalty among consumers.

(FMCG) will never die out. From a simple detergent to clean the floors to a pain relief spray, the need will always be forever.

“Loyalty” means faithfulness. it means unwavering devotion. Yet the concept of loyalty, at times, runs parallel to our own

The rapidly increasing

interests. But this romantic

competitiveness within the

ideology is not feasible in a

FMCG market compels an

commercial setting. Today, the

organization to not only entice

big brands are asking the Indian

the consumers to buy the

youth, not only for their devout

organization’s brand, but

loyalty but at a certain level,

compel the consumer to

commitment as well. And this

continue with the same. It is

commitment is born when the

therefore essential that an

consumer feels they a are part

organization does not merely

of the bigger initiative.

©SCHOOL of INSPIRED LEADERSHIP

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October 2012

Therefore, the focus of most of the FMCG companies has shifted to creating more of consumer engagement, involving the consumers in purchase decisions. Instead of a physical company-to-consumer

old female, shopping at a posh

approach, big brands are

mall in Delhi. Walking past a

seeking the help of social

cosmetic counter, she was

media, blogs and digital

stopped by a saleswoman.

technologies. Increasingly,

Some twenty minutes later, she

brand awareness through social

had bought a new brand, at a

media is becoming a key

300% premium to her regular

strategy for any tech savvy

brand.

FMCG firm. The most recent

What happened in these 20

initiative by NOMARKS to get a face from the consumers for packaging itself is a great way to engage consumers, advertise the brand and build consumer loyalty.

minutes to delight her was that a frontline person of the store engaged her and offered her a personalized skin analysis to better understand her skin. Based on the test, she was

With growing competitiveness, the companies are directly targeting the consumer’s psyche. One of the better

advised on her diet, fitness and

examples of this was a 24-year

personalized experience. She

ŠSCHOOL of INSPIRED LEADERSHIP

finally, recommended a specific skincare product. She walked away, delighted with this

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October 2012

would, of course, discuss this

Hundreds of birds will sing,

with many of her friends. She is

while, dragonflies & many other

not unique. She represents 50

will join in, flowers and fruits

million young Indian consumers

will bloom, an odd owl and

who account for over 60% of

pussycat will sing along, and the

the new consumption in

entire planet will form the

discretionary categories such as

chorus and wish him a long life.

durables, skincare and apparel.

A genuine effort to save the

A friend bought a fabulous blue shirt from LOUIS PHILIPPE,

planet and create customer loyalty, isn’t it?

earlier this year. On his birthday

Most FMCG products are low

a month later, to his surprise,

involvement products, so

he was greeted with a card

incentive and not the product

wishing him happy birthday and

becomes the primary reward.

telling him that the card

This becomes more relevant, if

certified that a tree had been

the incentive is exotic & not in

planted in his name at Satkosia

proportion to the cost of the

Gorge Sanctuary, Orissa, in

product. But due to its low

association with Grow Trees

margins, most FMCG products

NGO for him, for us and for

cannot afford to do so.

mother earth. The company

Further, there is low product

drew him in by informing him

differentiation that leads to low

that this year, friends and

customer loyalty and high

relatives would not be the only

switching. Customer retention

ones singing on his birthday.

becomes very important as

The sky, clouds and winds will

acquiring a new customer is

also join in the celebration.

five times more costly than

ŠSCHOOL of INSPIRED LEADERSHIP

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October 2012

retaining the existing customer. If one organization is not providing customer satisfaction, then its competitor will provide the same and drive it out of the market. This is why most efforts in the direction of loyalty program are limited to short term efforts to boost sales to achieve quarterly targets or to promote new categories / brand extensions. Innovation in products has become an important aspect which the company needs to address, in order to keep the customer happy and loyal as there is not one market in India but many.

bit too far. Another problem with the loyalty program is that they have become so popular that there are actually too many of them. We all probably have a reward card for every major supermarket in the country, but do any of them actually have our exclusive loyalty? And when it comes to supermarkets in particular, we are often bound to shop at our nearest and most convenient shop and not according to the best loyalty scheme. References: www.facebook.com

In this age of instant satisfaction, the Indian psyche is tuned towards a decreased level of tolerance and greater expectations. Thus, we can 'satisfy' such a customer but level of tolerance and increasing expectation from them to be 'loyal' is stretching the issue a ŠSCHOOL of INSPIRED LEADERSHIP

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4P Unleashed Dove Soap: Movement of Self Esteem October 2012

Sarvesh Pingulkar Business Leadership Program Product

Promotion

Place (Distribution)

Pricing

Introduction – Dove was introduced to the world by Unilever in 1957, not as soap but as a beauty bar. This product used the marketing strategy - “the product would not dry your skin because it has one-fourth of cleansing milk”. Dove then slowly changed its strategy from “cleansing cream” to “moisturizing cream”, which made it America’s one of the most recognizable brand.

Dove entered India in 1995, as a personal care brand of Hindustan Unilever and soon in 2000; it was tapped to become Masterbrand with long term strategy. From its introduction, Dove has always been known to be having characteristic marketing strategies and in 2004, for the first time, Hindustan Unilever won “marketer of the year” award for its brand Dove.

Product Mix (4 Ps) 1. Product Strategy – The important criterion to decide on product strategy is to differentiate the product ©SCHOOL of INSPIRED LEADERSHIP

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Oc t obe r201 2

f r om i t scompet i t or sandi tal so

•Brandf ocusedonmai n

i nvol vesknowi ngi t scompet i t i ve

cust omersegmentof

st r engt hsandi nsi ght sabout

“ NonModel ”women–

consumer s'mot i vat i ons.The

beaut i f uli nt hei rownway .

pr oductposi t i oni ngst r at egyi s ai medt of i ndabenef i tt hat di st i ngui shest hebr andf r om compet i t or si nt hesame cat egor yandt hati sval uedby

•Consi der i ngt hepr oductl i f e cycl e,Dovesoapi satgr owt h st ageoft hecycl e. 2.Pr omot i on –

consumer s.

•Dovesoaphasdi f f er ent i at ed t hepr oductasabeaut ybar wi t hmaxi mum moi st ur i zi ng cont enthavi ngpH val uezer o.

•Doveal sousesi mage di f f er ent i at i onwi t hi deaof

Maj orpr omot i onalcampai gns f orDovehavebeen

•2006–DoveSel f Est eem campai gn.

“ Moi st ur i zer ”and“ goodski n

•2008–DoveRealBeauty

cl eansi ngagent ” .

campai gn.Thi scampai gnput

©SCHOOLofI NSPI RED LEADERSHI P

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October 2012

Dove at the third position in

convinced the consumers to

India

pay for combination of good

• Currently Dove runs the

moisturizer and skin nourishing agent.

promotion campaign using “Market Specialization Concept”,

• Dove has priced the product

which promotes the product as

such that high levels of

“Real Beauty” and good for

perceived quality are related to

people of all ages.

higher price but just high

• Dove’s promotional video on

enough not to be unattainable

social media (Facebook and Youtube) has been watched by over 30 Lakh people.

• Dove also promotes using consumer magazines, newspaper.

to target consumers. 4. Place and Distribution channels –

• Major distribution channels for Dove have been HUL’s regular distribution channels, including 2500 distribution

3. Price –

stockists, 2000 suppliers and

Dove entered the Indian market

6.3 million retail outlets. This

in 1995 with price tag of Rs. 50/-, which made it difficult for the consumers to accept it. Dove then lowered the price to Rs. 28/-, focusing on broader Indian consumer market.

created a competitive advantage for Dove.

• General trade comprised of grocery stores, chemist shops, wholesalers and general shops.

• Dove India priced the product with clear promotions, which ©SCHOOL of INSPIRED LEADERSHIP

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Dr. Verghese Kurien – an Amulya person Lost

October 2012

Shivaraj Babu Marketing Leadership Program

AMUL- Brain child of Dr Kurien It all started 60 years back at Anand, an unknown village but as years passed; it became the Milk capital of India due to the presence of AMUL dairy. AMUL was started in the year 1946 by Tribhuvandas Patel as KDCMPUL (Kaira District Cooperative Milk Producer’s Union Limited). The phase of KDCMPUL changed when a young engineer, Dr. Verghese Kurien was employed at Anand, later to be known to the whole world as "the Milkman of India". Today, India is 'The Oyster' of the global ©SCHOOL of INSPIRED LEADERSHIP

dairy industry offering opportunities galore to entrepreneurs worldwide.

White Revolution Mr. Kurien gave a unique name to KDCMPUL and it was named as Amulya and then modified it to AMUL which stands for priceless. The brand AMUL (Anand Milk Union Limited) came into existence and became the leading market player in Gujarat. AMUL adopted a strategy of forming several co-operative societies for a group of villages. The upstream supply chain was entirely designed by Dr. Kurien. 28 | MARKezine


October 2012

Co-operative mechanism of Dr.

Be it politics, sports, Bollywood,

Kurien kept getting better and

the Amul girl is everywhere.

by the end of 1960, Amul had

AMUL is often said to be playing

become a success story in

the role of a “social observer

Gujarat. Late in 1965 with the

with evocative humor”, their

combined efforts of Prime

billboards are always very

Minister Lal Bahadur Shastri

creative and unique. The

and Dr. Kurien NDDB (National

punch-lines by AMUL girl are

Dairy Development Board) was

inimitable and they have won

established.

the maximum number of awards

Building the Brand AMUL The slogan of AMUL- “Taste of

in India for any ad campaign ever! Many other brands tried copying what Amul has done but they have failed miserably.

India” was given by Dr. Kurien. The first advertisement of AMUL came in 1966 for AMUL butter with AMUL girl to compete against polson butter girl. The AMUL girl became a huge success and it is has been continued for more than 40 years and it is the longest marketing campaign in India. The Amul girl is still as young as she was 46 years back; in fact she is glowing even more. ©SCHOOL of INSPIRED LEADERSHIP

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October 2012

Promotional strategy of AMUL

stood for the ‘Taste of India’. He relentlessly focused on this; that’s why such a big brand was built on less than one per cent marketing outlay, while other companies spent upwards of seven to 10 per cent as marketing expenses. He was conscious that this was farmers’ money and had to be judiciously spent. Dr. Kurien believed that if the quality of your product is good it sells by itself and that is how with less than one percent of marketing outlay, he was able to built a huge reputation among consumers

Conclusion Dr. Kurien is the recipient of more than 150 national and international awards, including the Raman Magsaysay Award for Community Leadership In Dr. Kurien’s mind Amul stood for an umbrella brand which straddled many categories, and ©SCHOOL of INSPIRED LEADERSHIP

(1963), Padma Shri (1965), Padma Bhushan (1966), Wateler Peace Prize (1986), World Food 30 | MARKezine


October 2012

Prize (1989) and Padma Vibhushan (1999). Dr. Kurien writes in his life history, My unfinished dream will only be accomplished when the farmers of India have a level-playing field to compete with other forms of businesses. Although Dr. Kurien is no more with us his, his contribution to the country is immense. RIP Dr Kurien…!!!

©SCHOOL of INSPIRED LEADERSHIP

31| MARKezine


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