INNOVATIVE MARKETING

Prepared By
Gaurav Bhoi-6 Mukesh Jain -17 Namrata James-18 Rina Jani-40 Rahul Sonvane-47

The Rural Bharat and Urban India

India has 2 economies The rapidly growing Urban India housing the worlds best IT firms and the worlds biggest slums Rural India, which still depends on subsistence agriculture Due to the vast difference in the economies, lifestyles, tastes and accessibility, different strategies have to be adopted to enter each segment. Strategies would differ based on Product: Rural Bharat: Basic necessities. Urban India: Discretionary items and basic necessities Price:

Rural Bharat: very price sensitive, extremely inelastic, the lower the price, the better Urban India: looking for the price quality balance. Just low price is not sufficient
Promotion: Rural Bharat: One to one education, TV, local events and festivals. Urban India: 360 promotion Placement: Rural Bharat: small ration shops, hawkers, local markets. Making the distribution channel very difficult and far flung. Local and efficient distribution is essential to ensure penetration Urban India: all modern trade channels, making the distribution easier and manageable.

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The 4 As rule for innovating in Rural India

Availability
Ensure high network of service centers and personnel
LG: 230 service centers, 65 remote area offices, 2600 mobile service personnel Coca cola: has evolved a hub system in Rural India to ensure full supply Hindustan Unilever: to serve remote villages they use all forms or means of transportation from rickshaws and bullock carts to boats

Supply chain management: due to lack of connectivity it is very essential to have efficient and effective Supply Chain
HUL Shakti: using rural women as distributors of HUL products Tata: uses NGO network to distribute products Reliance Retail: uses procurement from local villages to supply to the neighboring cities

 Affordability
Provide cheap prices by introducing smaller unit packs
Godrej: introduced its key proposition in soaps and fairness cream in 50 gm packs for Rs 4-5 for Madhya Pradesh, Bihar and Utter Pradesh

Coca cola: grabbed the rural India market share by introducing returnable 200 ml glass bottles of Coke for Rs 5, to bridge the gap between soft drinks and locally available options like tea, lemon water and butter milk
Hindustan Lever: launched its best selling soap Lifebouy at Rs. 2 for 50 gm LG launched its first low priced TV for Rs 3000

 Acceptability:
Offer tailor-made products suited for the needs and lifestyle of the market Coca Cola: understanding the problem of lack of electricity and refrigerators in rural areas, Coca Cola provided low cost ice boxes and thermocol boxes HDFC: tied with NGOs to offer low price insurance covers

Easy to understand LG: introduced regional language games in its low cost TV

Awareness :
The means of awareness is very different in Rural India in comparison to Urban India One to one contact program: Use of personal interface is very important to gain trust, demonstrate, induce trial and educate Promotion: Entertainment Cultural events example religious plays and performances Dances, folk performances Local annual fairs Annual Hatts (local marketplace) Weekly Marts Mobile vans

The Marketing Mix For Innovative Marketing

Your product should be an international brand with an Indian heart.

Price (value for money, balance between low cost and good quality)
Case study McDonald's India: value pricing and bundling strategy, Happy Meal, Combo Meal, Family Meal which helped drive sales volumes.

Pack (local terms, appealing graphics)

Case study Coca Cola India: Associated the term Thanda (cold) with coke, the term is a generic one which is used to refer to anything cold in North India. To make Coke part of the common culture they ran campaigns to get people to associate Thanda with Coke as well.

Promotion (Movies, bollywood and tollywood actors, local icons,

sports) difference in promotion tactics based on region Case study Gillette India: Use of sports as key promotion vehicle, use of Rediff (Indias leading website for news and mail) and Zapak (Indias leading geaming website) to market its product

Placement ( supermarkets, local groceries, all modern trade channels) Positioning

ITC Fiama de Wills Shampoo: entering an over crowded category dominated by MNC brands, ITC noticed that products are divided based on Cosmetic and Natural offering. They decided to combine these 2 benefits and offer the best of both worlds. Once all these criteria are met then the middle class Indians will become purchasers with a high degree of loyalty to a specific brand

Cadbury Dairy Milk: Made Indians eat chocolate to celebrate

Cadburys winning proposition in India is the classic Cadburys Dairy Milk. In an effort to make chocolate a generic term for something sweet, CDM has managed to make people eat and offer chocolate to celebrate the good things in life. Product Same product, but experimented with formats to target children and price-conscious consumers Cartoon character shapes to attract kids Mini pack to reach out to the lower middle class With the recent launch of new variants under the sub brand Silk, CDM has started to stretch upmarket Price With a broad offering in terms of format and price, the brand manages to reach out to all sections of the population: the range starts from Rs. 5 and goes up to Rs. 90

Promotion Constant and effective brand building to increase the brand salience Broad palette of execution from real-life situations, to emotional, fun- and festive-centric communication to teaser and online promotion Initially used the biggest Superstar in the country (Amitabh Bachchan) as their brand ambassador: but, CDM has maintained its own strong personality and avoided the trap of being overshadowed by the actor Currently, CDM is moving away from icons to use real-life characters with highly innovative story lines - to give the brand more personality and make it easy to relate to Placement Easy availability through all trade channels

CDM is highly mature in terms of product life cycle, but thanks to constant reinvention and highly innovative communication, the brand continues to generate consumer engagement.

Hyundai Santro: Slow and steady wins the race

Hyundai entered the Indian market in 1998 when Maruti Suzuki held a monopoly position. Hyundai faced a tough challenge - a Korean brand , with an absence of corporate image and product design which didnt work for the Indian consumer. Product Smart move of entering the country with a hatchback rather than a sedan. The consumer had grown bored of the Maruti offerings and saw this as a welcome change Turning disadvantage to its advantage, Hyundai positioned the Santro on the design aspect Evolved their positioning over time from being well designed to a family car, and gradually to a more sporty positioning Timely product improvements and upgrades Price Smartly priced, within reach of the target consumer who wanted to upgrade to the B segment Promotion Their masterstroke was the brand ambassador Shah Rukh Khan (the Indian Superstar) who did a number of commercials and product placements to win the trust of the Indian consumer and make them accept a Korean car brand Continuous brand building Placement Built their own service network and distribution channel, making the product easily available Easy availability of spare parts and convenient service stations The Hyundai Santro was the second best-selling car in India within 4 years of its launch. Today, its at the end of its product life cycle but it succeeded in establishing Hyundai in India. Today, even though the market has become very competitive in the hatchback segment, Hyundai enjoys a very strong corporate image and the trust of the Indian consumer

The different approach

Understand the needs of the people and customize product/ communication innovation based on that
Aircel: Telecom, started its journey in Mumbai and is now in all
other metros.
Putting up the IPL Scoreboard at the Mahim Causeway which enabled commuters at the busy Mahim Causeway to keep track of the latest Cricket scores. Creating buzz via the passion that drives the country On July 13 and 14, when heavy rains lashed the city. People stranded at the subway used the raft to move around and men in Aircel branded T-shirts were also available to help commuters

ChotuKool by Godrej: Cheapest refrigerator

Understanding the need for a cheap, lightweight fridge which consumes less electricity Godrej came up with the cheapest refrigerator worth Rs 3250/ Innovative distribution strategy: they employed village girls to distribute the product, increasing trial and reducing costs by 40%

These 2 glasses were stuck on to the bonnet and back of my car by someone at a crossing, and I spent a good 20 minutes trying to shake them off by swerving the car. On reaching office I took them off and found the magnet which said "Magnet sticks to Iron a Class V question SRK Saying Paanchvi Paas

Garnier 2 in 1 Shampoo: Convincing the Consumer to Think Differently

Background
Indian consumers traditionally oil their hair the night before washing, to lubricate and give it shine The following morning, shampoo is used and the oil removed So, shampoo and oil do not naturally go together in one product Can Garnier convince the consumer that shampoo and oil can go together as a 2 in 1 proposition?

Challenge

Does the product meet the needs of the consumer?

Yes The oiling and shampooing tradition is time consuming: time which consumers today do not have If this product suits both needs and shows equivalent results as actual oiling it would be accepted

Does the product already exist in the market?

No: its new and unique

Result

Due to its uniqueness, the product has induced trial The acid test for consumer retention is the actual product quality and effect

Volvo mini Car

The Volvo Car Corporation has built a mini-Volvo that takes care of very special transport requirements during the European Athletics Championship in Gothenburg.

Promotional Products
Promotional products or items are pieces of goods and commodities given away for free by marketing and communication programs. Typically, these are stamped or bedecked with the name, appellation, emblem or message of the particular company or group in question.

Four Key Elements of Innovative Marketing

1. Highly innovative marketing campaigns employ the age-old craft of story-telling, sometimes allowing the user to fill in the missing pieces of the story. 2. Highly innovative campaigns draw the user in often engaging the user in the story or campaign.

3. Innovative campaigns draw their creativity from the intersection of 2 or more marketing devices.
4. Highly innovative marketing utilizes an element of surprise and delight.

 Thank You