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Promotional Strategies
of different
FMCG brands in India
[By Rohit Gupta]
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  MBA	
  –	
  IB	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2009-­‐11	
  




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Promotional Strategies of different FMCG brands in India




                           Index
    Contents                                          Page no.
    Introduction                                            3
    Sales Promotion – Ponds Case                            5
    Major methods of Advertising                            6
    Rural Promotion and Advertising –                       8
    Tiger Biscuit and Parachute Case
    Promotional activities in 2009                          9
    HUL (Hindustan Unilever Ltd.)                          12
    GCPL (Godrej Consumer Private                          14
    Ltd.)
    Segment – ORAL CARE                                    14
        - Colgate
        - Pepsodent
        - Close up
        - Babool
        - Anchor White
    Segment – SOAPS                                        23
        - Dove
        - Lifebuoy
        - Dettol
        - Lux
        - Medimix
        - Cinthol

    Segment – WASHING POWDERS                              39
        - Surf excel
        - Nirma
    Fair and lovely                                        44
    ITC Biscuits                                           48
    Cornetto Ice cream                                     49
    Axe Deodrant                                           49




2
Promotional Strategies of different FMCG brands in India



Introduction
The fast moving consumer goods (FMCG) sector is also a rapidly evolving one, where
companies have to literally ‘move fast’ to ensure they are ahead of the competition.
While advertising and promotion costs are high, companies have to frequently launch
new products to expand their market share. Leading FMCG players have a vast portfolio
of products and brands that keeps growing by the day.
The Indian financial year starts in April while as the peak consumption season – both for
agricultural and consumer products in India is in the post-monsoon phase beginning
October. This also coincides with the festive season and manufacturers and retailers come
out with several attractive offers and schemes for consumers. Rural India is flush with
cash following the monsoon, and consumers are inclined to spend a great deal more
during this period.
For many FMCG companies a large chunk of their revenues – up to about 60 per cent –
comes from new product launches. Companies like Dabur, ITC, Britannia Industries,
Nestle and Amul are among those, which are currently unveiling dozens of new products
in time for the peak consumer season.
Leading FMCG firms like HUL, ITC, Nestle, Procter & Gamble and GlaxoSmithKline
Healthcare – which account for almost 70 per cent of FMCG revenues in the country –
spend almost 10 per cent of their turnover on advertising and brand promotion. They also
focus a great deal on new product launches.
With growing competition in the sector, it is natural that ad spends keep rising. Unlike
the manufacturing sector, FMCG is not capital-intensive, but expenditure on promotions
and branding is huge.
FMCG players also have to diversify into other sub-sectors to ensure continuous growth.
For instance, leading companies are now briskly expanding their presence in the bakery
segment, enhancing their product portfolios by launching new brands. ITC, Britannia
Industries, Amul and even a relatively smaller player like Gujarat-based Rasna, are
currently unveiling new campaigns relating to their bakery product launches. The
promotion strategy includes tying up with top Bollywood actors and other celebrity brand
ambassadors, besides going in for high-profile launches at leading retail malls and
outlets.


                                                                                       3
Promotional Strategies of different FMCG brands in India




Sales Promotion
A sales promotion strategy is an activity that is designed to help boost the sales of a
product or service. This can be done through an advertising campaign, public relation
activities, a free sampling campaign, a gift campaign, a trading stamps campaign, through
demonstrations and exhibitions, through prize giving competitions, through temporary
price cuts, and through door-to-door sales, telemarketing, personal sales letters, and
emails. The importance of a sales promotion strategy cannot be underestimated. This is
because a sales promotion strategy is important to a business boosting its sales.
While developing a sales promotion strategy for the product it is important to keep the
following points in mind- Consumer attitudes and buying patterns, Brand strategy,
Competitive strategy, Advertising strategy, and other external factors that can influence
your products, availability and pricing.


Sales Promotion strategies
There are three types of sales promotion strategies:
1:-A push strategy
2:-A pull strategy or
3:-A combination of the two


A 'push' sales promotion strategy involves 'pushing' distributors and retailers to sell
your products and services to the consumer by offering various kinds of promotions
and personal selling efforts. The basic objective of this strategy is to persuade
retailers, wholesalers and distributors to carry your brand, give it shelf space, promote
it by advertising, and ultimately 'push' it forward to the consumer. Typical push sales
promotion strategies include; buy-back guarantees, free trials, contests, discounts, and
specialty advertising items.




4
Promotional Strategies of different FMCG brands in India


For Example: Ponds Cold Creams
Pond’s offer different cash discounts to the retailers for
different quantities.
2% discount on 10000 Purchase
3% discount on 15000
4% discount on 25000
or
Ponds offer
A PVC jar Free on Purchase of 100 (100gm) Cold
Cream.
A 'pull' sales promotion strategy focuses more on the consumer instead of the reseller
or distributor. This strategy involves getting the consumer to 'pull' or purchase the
product/services directly from the company itself. This strategy targets its marketing
efforts directly on the consumers with the hope that it will stimulate interest and
demand for the product. This pull strategy is often used when distributors are reluctant to
carry or distribute a product.


For Example:
Ponds offer low introductory prices to the customers like in case of their new product
AGE MIRACLE,
They give some complementary gifts.
A 'combination' sales promotion strategy is just that; it is a combination of a push and
a pull strategy. It focuses both on the distributor as well as the consumers, targeting
both parties directly. It offers consumer incentives side by side with dealer discounts




                                                                                           5
Promotional Strategies of different FMCG brands in India



Advertisement
Advertising is the means of informing as well as influencing the general public to buy
products or services through visual or oral messages. A product or service is
advertised to create awareness in the minds of potential buyers. Some of the
commonly used media for advertising are T.V., radio, websites, newspapers,
magazines, bill-boards, hoardings etc. As a result of economic liberalization and the
changing social trends advertising industry has shown rapid growth in the last
decade. Advertising is one of the aspects of mass communication. Advertising is actually
brand-building through effective communication and is essentially a service industry. It
helps to create demand, promote marketing system and boost economic growth.Thus
advertising forms the basis of marketing.



Major methods for advertising
E-mail messages: These can be wonderful means to getting the word out about the
business. In this we design a e-mail software to include a "signature line" at the end of
each of our e-mail messages. Many e-mail software packages will automatically attach
this signature line to our e-mail, if we
prefer.


Magazines: Magazines ads can get quite expensive. Find out if there's a magazine that
focuses on your particular product. If there is one, then the magazine can be very useful
because it already focuses on your market and potential customers.


Newspapers: Almost everyone reads the local, major newspaper(s). You can get your
business in the newspaper by placing ads, writing a letter to the editor or working with a
reporter to get a story written about your business.


Radio announcements: A major advantage of radio ads is they are usually cheaper
than television ads, and many people still listen to the radio, or example, when in their



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Promotional Strategies of different FMCG brands in India


cars. Ads are usually sold on a package basis that considers the number of ads, the length
of ads and when they are put on the air. . A major consideration with radio ads is to get
them announced at the times that your potential customers are listening to the radio.


Television ads: Many people don't even consider television ads because of the
impression that the ads are very expensive. They are more expensive than most of major
forms of advertising. However, with the increasing number of television networks and
stations, businesses might find good deals for placing commercials or other forms of
advertisements. Television ads usually are priced with similar considerations to radio ads,
that is, the number of ads, the length of ads and when they are put on the air.


Web Pages: You probably would not have seen this means of advertising on a list of
advertising methods if you had read a list even two years ago. Now, advertising and
promotions on the World Wide Web are almost commonplace. Businesses are developing
Web pages sometimes just to appear up-to-date.


Special events: These tend to attract attention, and can include, e.g., an open house,
granting a special award, announcing a major program or service or campaign, etc.


Promotional activities through Media
Articles that you write: Is there something in your product about you having a
strong impression? Consider writing an article for the local newspaper or a magazine. In
your article, use the opportunity to describe what you're doing to address the issue
through use of your product. For example we do get good examples of product based
articles in tribune, where sometimes products also compared.


Press kits: This kit is handy when working with the media or training employees about
working with the media. The kit usually includes information about your business,
pictures, information about your products, commentary from happy customers, etc.




                                                                                         7
Promotional Strategies of different FMCG brands in India



Rural Promotion and Advertising
In country like India, where the 70% of the people live in rural area, the rural market
holds a lot of marketing potential. There is a wide spread difference in the standard of
living between urban and rural India. In order to launch products and develop advertising
for rural market there is a need to understand both the rural context and also the consumer
very well. Promotion of brands in rural markets requires the special measures. Due to the
social and backward condition the personal selling efforts have a challenging role to play
in this regard. The word of mouth is an important message carrier in rural areas. Infact
the opinion leaders are the most influencing part of promotion strategy of rural promotion
efforts. To communicate effectively with rural audiences, it is important to understand the
aspirations, fears and hopes of rural customers, in relation to each product category,
before developing a communication package to deliver the product message. Hence, there
is a strong need to build reassurance and trust about product quality, service support and
company credentials in the minds of rural consumers. This is best done through the face-
to-face 'below the line' touch, feel and talk mode at haats, melas and mandis. Language
and regional behaviour variations should be considered while developing rural
communications strategy. Although the reach of television in rural India is high, frequent
power-cuts restrict viewing time considerably. With the licensing of FM channels to
cover all district headquarters, the power of radio to deliver a localized message in a local
language will soon be available to advertisers as a cost-effective way to reach rural
masses. Rural India has a very high ownership of transistor radios and as these run on
batteries, radio can once again be expected to become a popular medium for reaching
rural masses
One of the most popular and widely accepted Marketing Myth is that the rural consumers
will only buy really cheap mass market brands. But the stark reality is that though brands
like Nirma lead, but penetration of premium products has also been observed even to the
lowest SEC (socio-Economic Classification). The percentages may be very small, but
given the large universe, the actual figures may be significant. Thus when we are aware
of the fact that brands like Nirma, Tiger biscuit, Parchute oil rule the rural market, it
would be interesting to study and analyse their basic marketing inputs.




8
Promotional Strategies of different FMCG brands in India


For Example
A) Tiger Biscuits: Britannia has entered in to the
rural market by participating in rural melas and
displaying its down market brand Britannia Tiger
Biscuits. These rural melas and weekly haats have
become more popular medium of rural advertising by
the media planners. Apart from stockists and sub-
stockists, Britannia has used traditional haats and
melas to promote the Tiger brand. It has made the
ongoing Kumbh Mela a major promotion and sales outlet. Whenever they come to know
of a major mela or haat, they ensure that their brand is stocked in large quantities. There
are hoarding, which are put up by the company in the rural areas. The hoardings are
mostly put up with complete information regarding the product. The information is given
in the local language in order to let people know about the product. The hoardings also
have the mascot tiger which emphasises a strong healthy individual.
T.V. The various ad campaigns throughout the country are done by preparing a single
advt but the language in which it features is according to the regional language of that
                              state. The ads include famous personalities like Saurav
                              Ganguly. The ads mainly focus on the children and
                              emphasise a strong diet for a healthy mind and body.
                              School children in rural areas are often given small packs at
                              a confessional rate and at times they are distributed as free
                              samples
                              B) Parachute Oil:	
   With the objective of creating
                              awareness for Parachute Coconut Oil pouches in towns with
                              less than 20,000 population in Tamil Nadu, and in order to
                              convert loose oil buyers into Parachute pouch customers,
Marico Industries launched a van campaign. The communication Strategy focussed on
getting women out of their homes to participate in the van campaign, which was aimed
exclusively for them and for the first time conducted by women. Result - A study by




                                                                                              9
Promotional Strategies of different FMCG brands in India


Marico showed a 25per cent conversion from loose coconut oil usage to Parachute Pouch
Pack, post van campaign and a substantial increase in sales from the campaign areas.


Promotional Activities in 2009
Hindustan Lever, the fast moving consumer good giant has reduced promotional offers in
2009 as it focused on profitability at a time when volume growth was back.
Hindustan Lever which has launched a slew of offers in year 2008, like the 'buy three, get
one free' offer on the Rs 75 multipack of Lux, which is its second largest selling soap
brand has withdrawn the offer. Lux has a market share of 15.5 per cent in the Rs 7,500
crore soap markets.
HUL has also raised the price of the 400 milligram Clinic Plus shampoo Rs.139 to
Rs.154. Clinic Plus has a market share of over 25 per cent in the Rs.2,500 crore shampoo
market.


HUL has been affected by the volatility in 2008 the most, with the company losing
market share across all its key soap, detergent and oral care categories. So in a bid to get
the volumes back, HUL went in for consumer offers and aggressive advertising. This
move worked, as the company saw a 2 per cent volume growth in the June quarter of
2009 financial year compared to a 4 per cent decline in the previous quarter of the
previous year.
Wipro Consumer Care has revised its consumer offer on Santoor soaps 'Buy 2 and get a
Reynolds pen free' to Rs.1 discount on a soap bar of Rs.18.
It’s not the case that all market players followed the same line, though. For instance, ITC
launched promotional offers for its soap brands in select markets. ITC is offering a 2 +1
scheme on the Superia and Vivel Di Wills soap. It also has a 'buy four and get one free'
offer on its Vivel soap. 70 per cent of the category sales in case of shampoos sachets are
dominated by players like ITC and CavinKare which are running '25 per cent extra'
schemes.




10
Promotional Strategies of different FMCG brands in India


Buy More Save More
Companies also adopt "buy more to save more" concept to boost sales during the t
slowdown. While price correction is clearly a focus area, fast moving consumer goods
(FMCG) companies like ITC, Godrej Consumer Products Ltd (GCPL), Emami and
Marico are also building on “tactical” promotions, bundled offers and “buy more to save
more” concepts to beat the current recession.
GCPL’s promotional offers, for instance, include one free cake of soap on purchase of
three, and discounts on purchase of linked packs. According to officials at GCPL
discounts and promotional offers are temporary means to achieve strategic ends, which
could include trial and competitive reaction. Reasons for promotional offers include
rewarding loyal customers, passing on cost savings to consumers and inducing trial.
A few of Emami’s schemes include Emami Pure Skin worth Rs 22 free with Boroplus
Advanced Moisturising Lotion worth Rs 98; five pieces of Sardija Cough drops worth Rs
5 free with 100 ml of Sardija Cough Syrup worth Rs 50, among others.
In many ways, discount is a starting point as it helps create buzz and excitement and
ensures higher sales. Consumers might curtail consumption of high-end products but not
‘mass’ products. During trying times, ‘save more when you buy more’ strategy always
work.
ITC is offering Vivel Di Wills shampoo (200 ml) free with its 75 gm bathing soap for Rs
89. ITC brands are new hence marketing efforts are geared towards enhancing consumer
engagement and trial. The consumer response to brands, Fiama Di Wills, Vivel and
Superia, has so far been excellent says official at ITC




                                                                                      11
Promotional Strategies of different FMCG brands in India



HLL (Hindustan Lever Limited) now HUL (Hindustan Unilever
Limited)
Hindustan Lever Limited (HLL) is India's largest fast moving consumer goods company.
It is a leading player in home and personal care products, foods and beverages, and
                                                                          speciality   chemicals.
                                                                          The product portfolio
                                                                          with its wide range of
                                                                          products     sets    HLL
                                                                          apart! It has achieved
                                                                          market leadership in
                                                                          soaps and detergents
                                                                          (Surf) as well as hair
                                                                          and skin care products
                                                                          (Sun     Silk,      Dove,
                                                                          Hamam). It is the
                                                                          second              largest
manufacturer of dental care products (Close-up, Pepsodent). HLL is also market leader in
tea (Taj), processed coffee (Bru), ice cream (Kwality-Walls), tomato-based products
(Kissan), jams and squashes (Kissan), and branded staples (Kissan Annapurna). With a
plethora of brands, Communication becomes imperative.
Every company has to communicate the presence of its products to capture a large market
share. How does a company do that? There are many tools that a marketer can use:
advertising, hoardings, radio, television and internet ads! What’s missing is the freebie! Is
sales promotion only made up of ‘atta free with soap’?           This is how HLL used sales
promotion programmes to build its brands.




12
Promotional Strategies of different FMCG brands in India




1. Consider this: When Dove was launched in the market, people had a certain
reservation against the product. Why?
There were two reasons:
a. Price factor. Most housewives found Dove to be pretty steep and thus consumption was
restrained.
b. Secondly, the rumours of one of its ingredients being animal fat.
HLL began a sales promotion campaign: Get Dove soap free with a kilo of Surf Excel.
With this promotion tactic, HLL got the opportunity of converting “non-users” of Dove
to users. At the same time changing attitudes of other detergent users by converting them
to Surf users.
2. On the other hand, HLL sought to increase usage of Close-Up amongst the target
audience by introducing the travel tube, initially giving it free with every 200gm pack of
toothpaste bought.
3. When attacked by Cavincare of Fairever fame, HLL adopted a defensive strategy by
giving awayone more Fair and Lovely free with every purchase of it(BOGOF). This is
one of the many ways by which a marketer can piggyback on the brand’s standing in the
market


Repositioning and Repromoting Organics
When Organics was first launched on the platform of “root nourishing “ shampoo,
consumers were sceptical towards the positioning. No one wanted to spend thirty six
percent extra when compared to Pantene. Consumers were happy using coconut oil to
strengthen the roots. What did Levers do to push the product? 'Buy one get one
free'(BOGOF) on every small pack of Organics. The surprising aspect is that this
promotion failed to work for Levers.
The next step that HLL took was of repositioning Organics. They found out that the
common problem in India was hair breakage. Glucosil was added to the product for
healthy hair and the product was now revamped on the grounds of beautiful and healthy
hair.




                                                                                       13
Promotional Strategies of different FMCG brands in India


Where promotion was concerned, HLL used an entirely new outlet - bookstores! Contests
were conducted there and the winners were given Organics hampers. This exercise
helped a lot in brand recall thereby placing Organics on the map of the consumers’ mind.
That’s the power of sales promotions in building a brand!



GCPL (Godrej Consumer private Ltd)
With the new strategy of tapping the middle and lower ends of the market, Godrej
expects the Godrej brand name to work for him. In the low income housing market,
known for fly-by-night builders, the Godrej name will be leveraged more. With all this is
mind, Godrej launched the group_s first ever ad campaign for the Godrej brand rather
than for its individual brands such as Cinthol soap or Godrej Hair Dye.
Aimed at packaging the brand for younger consumers, the campaign showcased the
group_s products for the space programme, and included sponsorship of the Indian
Premier League and a show created to promote the Godrej products range, called Godrej
Khelo Jeeto Jiyo. Godrej says the group will continue to build on branding. Group
companies have used the campaign to target their individual advertising better. For
instance, Godrej Consumer now buys ads more on Doordarshan because the brand
campaign takes care of cable television. It means Godrej Consumer has an advertising
budget lower than most competitors.



Segment - ORAL CARE
Practically all of rural India prefers cleaning their teeth with traditional products such as
neem twigs, salt, ash, tobacco or other herbal ingredients, contributing to a low per-
capita consumption of branded oral care products. According to WHO, India’s overall
awareness of oral hygiene is still very poor. The dentist- to-population ratio is 1:35,000 in
comparison to 1:7,500 as recommended by the WHO. But with burgeoning middle class
and multi- pronged advertising campaigns, there is now a latent demand for the formal
oral care products and this is set to rise exponentially in the coming years. Growth is also
likely to emanate from consumers ‘upgrading’ to matured, value-added and innovative
products in this category. Of late, growth of modern trade has also propelled brand sales,


14
Promotional Strategies of different FMCG brands in India


especially in the urban markets. Overall, the oral care sector is mainly represented by
tooth- paste. Other products include mouthwashes, sprays, teeth whiteners and oral
rinses. In India, there is also significant usage of toothpowders, especially in semi-urban
and rural areas.
In India, toothpowder was primarily targeted at people who used traditional products like
salt, neem twigs and other herbal products. Brands like Colgate, Dabur, Babool, Vicco
are the prominent players in the toothpowder market in India
Major players in the oral care market are Colgate Palmolive India Pvt. Ltd. (CPIL);
Hindustan Unilever Ltd. (HUL) and Dabur India Ltd. brand loyalty is quite high for
toothpaste where CPIL and HUL together account for over two-thirds of the branded
toothpaste market. In toothpowders, CPIL, which manufactures white toothpowder, and
Dabur India Ltd., which manufacture red toothpowder, are the leading players, sharing
three-fourths of the branded toothpowder segment. In rural areas, red and black tooth-
powders continue to be very popular, with the market being led by local manufacturers.
Among smaller, but fast growing companies in the oral care segment are Ajanta India
Ltd., Vicco Group of Companies, The himalaya Drug Company, Anchor health &
Beauty Pvt. Ltd. and Henkel India Ltd.
The oral care market in India is divided into three main segments -- economy, popular or
regular and premium. The brands from CPIL, HUL, Dabur India Ltd., are more popular
in metros and major cities, while smaller and regional brands such as Anchor, Colgate-
Cibaca and Ajanta have a stronghold in the smaller cities.
In recent years oral care in India has been greatly driven by product innovation, widening
of retail availability, packaging and sustained brand promotions. For a new brand to
grow and gain market share, strong brand promotion in a specific category has been
the chosen marketing strategy. For instance, if a product is made especially for night
brushing, the marketing strategy would typically build a story around this usage. Over the
years, such focused advertising (sometimes using popular brand ambassadors and
television programme sponsorships) have helped many brands to connect swiftly with the
target audience.
For instance, HUL tried to increase its share in the Indian oral care market through the
launch of Pepsodent, and campaigning with a message that communicated to kids and



                                                                                        15
Promotional Strategies of different FMCG brands in India


their parents the importance of protection from germs through the night.
As a value addition, the next stage of the campaign was focused on ‘Germ Indicator’,
which was included in every Pepsodent pack allowing consumers to see the efficacy in
fighting germs for themselves. Following that, Pepsodent offered dental insurance to all
its consumers to demonstrate the confidence that the company had in the technical
superiority of the product. The re- launch of the campaign widened the context
towards the adverse effects of “sweet and sticky” food and leveraged the fact that
children do not rinse their mouths every time they eat, thereby reinforcing the power of
Pepsodent in fighting germs for themselves.
Close up on the other hand was positioned as a youth oral care brand from the very
beginning. In 2004, the brand was re-launched with a publicity blitz that
communicated virtues of a ‘Vitamin Fluoride system’ present in the product -- a
powerful mix of vitamins, fluoride, mouthwash and micro-whiteners, for fresher breath
and stronger, whiter teeth. Clearly, HUL derived critical mass growth from having two
brands targeting two different sections of consumers – Pepsodent as a family brand and
Close Up as a youth product.




When Colgate-Palmolive (India) Limited (CPIL) launched its advanced Whitening
toothpaste in 2005, it roped in Sonali Kulkarni of ‘Dil Chahta hai’ fame, looking at
further strengthening the expansion of its whitening variant amongst the youth.
The brand Colgate herbal White was also launched communicating the message of
‘pearly white teeth’ with an attractive packaging in green, white, red and blue. The
advertising campaigns through television commercials used the beaver ‘gillu’ as a
mascot of the product.
Dabur India Ltd. launched Dabur Red toothpaste with the brand association of Star
Plus channel by sponsoring one of its programmes, ‘Star Parivaar awards’ for two


16
Promotional Strategies of different FMCG brands in India


consecutive years in 2003 and 2004.
Anchor White, the toothpaste brand from anchor health and Beauty care Pvt. Ltd., has
been extensively promoted as a ‘family product’ with Bollywood actor Kajol along
with her daughter targeting the price-sensitive middle-class segment through its
convenient packs and price points.
While toothpaste advertising has by and large used the traditional images and
                                                     characteristics of family values, the use
                                                     of humor and imagination has also
                                                     been highly effective in generating
                                                     brand recall for new- age oral care
                                                     products. Perfetti Van Melle’s very
                                                     popular ‘happydent White Palace’
                                                     advertisement is a case in point.
                                                     Conceptualized by Prasoon Joshi and
                                                     McCann           Erickson,    the     ad
                                                     communicates dental hygiene as a
fun activity by making it interesting rather than therapeutic. Given it in- innovative
departure from the norm, the commercial has clearly broken through the clutter by
positioning happydent as not only a children’s confectionery but a functional
product that gives healthy and white teeth.
                                But the story is not all urban. Rural India may well be a
                                sleeping giant; already there are signs of rural Indians
                                shifting from traditional dental care products to brands --
                                especially the herbal variants -- at popular price points.
                                Burman from Dabur explains that growth in hitherto
                                untapped regions will be greatly driven by affordability.
                                ““We      have    observed      the    growing    demand   for
                                economically priced herbal tooth- pastes in rural markets.
                                Therefore, Babool is well placed to benefit from this
                                growing demand, and has been the fastest growing
                                toothpaste brand for three years in running.”



                                                                                           17
Promotional Strategies of different FMCG brands in India


An appropriate product with an effective communication strategy can drive the growth
further in the rural markets,” he adds.
As of now, manufacturers’ and marketers’ efforts have focused on enhancing penetration
-- bringing new users into the toothpaste segment – by strengthening their presence in the
economy segment. Both CPIL and HUK have concentrated on building their rural
distribution net- works by rolling out smaller units of toothpastes at affordable prices,
and have also launched nationwide com- munity dental health programmes and
informative commercials on dental hygiene in association with dental associations. The
companies have also been using channels such as e-choupals and Disha to further reach
the rural population.
Dabur has also been participating in rural community practices, besides organizing
special oral care clinics with school children to propagate the advantages of brushing
which have helped them drive deeper into the market.




R     ecently, Colgate launched a creative
      billboard campaign for its toothpaste
brand, MaxFresh, where the toothpaste's
cooling crystals appeared to be popping out
of the hoardings. The idea of the campaign
was to communicate the product superiority
of MaxFresh - to emphasize that it contains
cooling crystals in abundance, and to
highlight the fact that while other gel
toothpastes freshen breath, only Colgate
MaxFresh has cooling crystals that are more
effective than regular gels. While the product is not new, the company built interest by
adding a short code to the creative. The objective was to call people to action. The ad
says, 'SMS MaxFresh to 57007 for a free sample.




18
Promotional Strategies of different FMCG brands in India


Here are few strtegies adopted by Colgate max fresh:
•    Colgate Max Fresh Gel- first toothpaste infused with cooling crystals that create
    whole new dimension of freshness.
•    Saif Ali Khan and Asin are the celebrity brand ambassadors.
•    For the launch of this new gel, interactive media was of foremost importance given
      the core target audience of young adults.
•    The USP – cooling crystals – had to be highlighted in all communication.
•    Campaign on:
•    Online: Reaching consumer across various sites.
•    Mobile: Downloads for consumers
•    Extensive online media plan
•    Innovations and large sized banners across portals
•    PPC (SEM): a customized search marketing campaign on Google
•    Keywords ranging from Valentine’s (topical) to Ipods (prizes) to Saif Ali
     Khan(brand ambassador) carried the maxfreshclub message & drove traffic to the
     site.
•    Content Sites across genres – Cricket, Movies, Business, News
•    Google partner sites related to bollywood/ greetings/ jokes/ mobile fun were also
•    part of the campaign – all building on the premise of contextual relevance.
•    All banners directed traffic to www.media2win.com/maxfresh
•    Mobile integration enabled consumers to not only download ringtones &
    wallpapers but also play interesting games & get a ‘Fresh Joke of the day’ by smsing
    MaxFresh to 58558.
•    Innovative rich media banners across leading sites to ensure high frequency
       • Rediff
       • Yahoo
       • Indiatimes
       • MSN
       • Sify




                                                                                         19
Promotional Strategies of different FMCG brands in India


Sponsorships/ Interactive Properties on select sites
•    Special sites like Galatta.com (for the south film-crazy audience) were included since
the brand ambassador for the southern audience is Asin, a Tamil movie star.
•    All Asin related content on Galatta was branded by MaxFresh & Galatta users got to
meet Asin as part of the online promo.
•    Innovative units such as the browser branding on Yahoo India ensured that the
campaign has high impact.
•    This innovation re-skins the browser bar with MaxFresh brand colors and message –
delivering cut through visibility.
•    In addition to this, rich media creative was used wherever possible to maintain
impact.
•    Phase 2 of the campaign focused on specific games on the site to ensure visitors keep
coming back
•    Microsite:www.media2win.com/maxfresh
The micro site had a range of games, wallpapers, screensavers, viral ideas
product info & a specially created dimension test – all based on the brand proposition of
cooling crystals & the 2 flavours, spicy fresh & peppermint ice.
•    The music on the homepage was composed only for the site.
•    The launch of the site, timed with Valentine’s Day, promoted the viral & topical ‘Max
     Muuaah’ by which a user could send an e-kiss. .
•    Crystal Quest’ & Crystal Challenge’ required users to collect or spot the crystals in the
     game – in sync with the fun, energetic feel of the site.
•     The downloads drew on the brand ambassadors Saif & Asin.


Results
     •   Over 1 lakh unique users to the site.
     •   Average time spent 9 minutes.
     •   Over 25 million impressions served through the online campaign.
     •   Generated 140,000 clicks.
     •   Innovations- browser branding worked well with 1.5% CTR.
     •   Downloads from the site close to 8000.



20
Promotional Strategies of different FMCG brands in India




Trial pack campaign




Conscious about your Teeth? Then get a free trial pack and free oral dental advice from
colgate.
Colgate is a famous toothpaste company. It is giving free trial pack and free oral dental
advice. To get the free trial pack, you need to fill a form which includes your personal
information, contact details and other information. In personal details, you need to submit
your name, email ID and occupation. In contact details, you need to submit your address,
city, pincode, area, state, landline number and mobile number. Other information
includes the questions like How did you come to know about this offer/promotion and
Currently used Toothpaste Brands.


COLGATE'S BRIGHT SMILES, BRIGHT FUTURES
The Colgate Bright Smiles, Bright Futures Oral Health Educational Program worldwide
was developed to teach children positive oral health habits of basic hygiene, diet and
physical activity. This Program also encourages dental professionals, public health
officials, civic leaders and most importantly, parents and educators to come together to
emphasize the importance of oral health as part of a child's overall physical and
emotional development.
Under this Program conducted by Colgate-Palmolive, India children in primary schools
receive instructions in dental care from members of the dental profession nominated by
the Indian Dental Association. Education is imparted with the aid of audio-visuals and
printed literature created by the company. Free dental health care packs, including
samples, are also distributed by the company to encourage the practice of oral hygiene.
Teachers Training Program is an integral part of the School Dental Health Program,
conducted regularly across the country to promote preventive dental health care.Colgate




                                                                                            21
Promotional Strategies of different FMCG brands in India


also has launched its first-ever online school curriculum featuring fun and entertaining
activitie




                                                                Super Saver Offer for 'All
                                                                Around Decay Protection'.
                                                                Buy 200g plus a 100g
                                                                tube with a Colgate Extra
                                                                Clean      Toothbrush           in   a
                                                                Family Value Pack for Rs.
                                                                82/-. Save Rs. 18/-.



                                                                Colgate Maxfresh Gel is
                                                                the        first         toothpaste
                                                                infused        with            cooling
                                                                crystals      giving       you       a
                                                                whole new dimension of
                                                                freshness.         Get     a     150g
                                                                plus a 80g tube with a
                                                                Colgate            Extra        Clean
                                                                Toothbrush in a Freshness
                                                                Value Pack for Rs. 79/-.
                                                                Save Rs. 20/-.




22
Promotional Strategies of different FMCG brands in India



Toiletries Soaps and Shampoos
The toilet soaps market is estimated at 530,000 turnover per annuum including small
imports. The market is littered over with several, leading national and global brands and a
large number of small brands, which have limited markets. The popular and premium
brands include Lifebuoy, Lux, Cinthol, Liril, Rexona, and Nirma.
Soaps form the largest pie of the FMCG Market with bathing & toilet soaps accounting
for around 30% of the soap market, by value. Currently, the soap industry is divided into
three segments namely Premium, Popular and Economy/ Sub popular
To fight competition, major players Hindustan Unilever Ltd (HUL), Godrej Consumer
Products Ltd (GCPL) and Wipro Consumer Care & Lighting are now drawing up fresh
game plans. And the accent is clearly on innovation to gain mind share as well as market
share in this overcrowded category.




R     emember the ‘Is it love? No it’s Dove’ ads? In the
      1990s, when everything had to be low priced,
consumer goods major Hindustan Unilever launched a
brand of soap that was considered expensive, frightfully
expensive , for the times we lived in. For about Rs 30 for a bar, it was nearly twice as
expensive as any toilet soap brand that was then sold in India. This was a time when
hanging out for coffee was at the neighbourhood Udupi restaurant that charged Rs 6 for a
serving and not the Barista where a mug of coffee cost Rs 50. To get consumers living
with that mindset to graduate to a brand like Dove was a big leap.
Certainly the well-traveled Indian consumer who had seen and touched the brand abroad
were the first set that moved towards the brand for its superior and “gentle on skin”
properties. Others who sampled the brand had mixed opinions. Occasionally you heard
the sob story from a neighbour on how a Dove bar got over in just four days, when the Rs
10 soap lasted for a month, giving rise to rather unkind remarks that Dove was 1⁄4
moisturiser and 3⁄4 love. This set of consumers used the bar for washing the face while a
less costly soap would be used for the rest of the body, a value-for-money approach.
From those use-for-special occasion days, Dove has come a long way. HUL executives


                                                                                        23
Promotional Strategies of different FMCG brands in India


claim that Dove has grown by 100% in shampoos and
23 by 42% in soaps. “Dove is the largest premium brand in the Hindustan Unilever
portfolio,” says Rajaram Narayanan, vice president, hair care and Lakme, HUL. Now the
Dove portfolio delivers Rs 500 crore in sales.


Real Women Face Test
The faces that represent the Rs 500 crore premium brand are of ordinary women.
The faces that represent Hindustan Unilever’s (HUL) biggest premium soap brand are not
familiar. For, they represent 11 ordinary women who won Dove’s Real Women Face Test
– a campaign that received over 4,500 entries.
Recently the fast moving consumer goods major put all of them on billboards,
newspapers and on television to endorse the Rs 500 crore brand in a high voltage
advertisement campaign.
That’s Dove’s way of going off the beaten track in its communication strategy. Unlike
other soap advertisements, the premium brand did not use the usual models or movie
stars. Instead, it got real women who use the product to give testimonials of their
experience with the brand.
In May 2007, HUL launched Dove shampoo from Unilever’s portfolio.
For Dove’s hair wash variant too, HUL initiated huge sampling in malls by setting up
counters where consumers could get their hair washed and then photographed. These
pictures were showcased in the Dove Gallery. As a result, testimonials were not just on
TV, but also online through consumer-generated content and in print.
The same year, the company also launched shampoo sachets priced at 50 paise each in an
effort to increase penetration and usage of the product in rural and poor households Until
these launches HUL’s presence in shampoos has largely been restricted to so-called mid-
priced shampoos with its Clinic and Sunsilk brands and their variants. The changes seem
to have worked for the company. According to research firm AC Nielsen, HUL’s share in
the haircare business went up by one percentage point from 47% in the first quarter of
2007 to 48% in the December quarter. In comparison, its nearest rival Procter and
Gamble’s (P&G) share fell from 25% to 23.3%.
Dove is a classic case of consistency especially in a country like India where people have



24
Promotional Strategies of different FMCG brands in India


come of age in terms of affluence. The soap’s advertisements are very timely. Sales of
the soap have been growing at over 40 per cent annually and the recently launched
shampoo variant at 100 per cent. Dove is now almost a Rs 500 crore brand, with soaps
accounting for around half of that figure. The rest comes from hair care, a category
launched two years ago.




W       hen we talk about HUL the first name that comes to
        our mind is Lifebuoy. It is the world’s largest selling
soap and offers a stronger health benefit to the entire family.
Launched in the year 1895, Lifebuoy, for over a 100 years,
has been synonymous with health and value. The brick red
soap, with its perfume and popular Lifebuoy jingle have carried the Lifebuoy message of
health across the length and breadth of the country, making it the largest selling soap
brand in the world.
Lifebuoy contributed 30 per cent to the Hindustan Lever detergent business turnover
and hadn't undergone a major restructuring and repositioning in 107 years. However, the
sales were declining as the consumers were moving away from the carbolic based
soaps to beauty soaps - perceived to be superior; with better fragrance and lather;
aspirational image.


The agency devised a strategy to ensure that it advocated family health rather than
personal hygiene. There were large chunks of the users who were in "unreachable
areas" - rural markets. Through TV and print campaigns, the agency team focused
attention on the family health themes, conducted consumer education exercise using
"Germ tests" through multimedia; and established the brand's credentials as an
authority in a credible manner. The agency also explored the communication options
during important days such as World Health Day. For rural markets, it created the
Lifebuoy Swashthya Chetana project wherein 450 teams of health officers tapped
8000 villages in 11 states. Nearly 40 million people in rural areas were covered. The


                                                                                      25
Promotional Strategies of different FMCG brands in India


brand registered a 30 per cent increase in volumes and the share of contribution to
HLL's detergent division turnover increased to 55 per cent.


HLL used Mahakumbh mela as an opportunity to change hand-washing and bathing
habits in rural India. "The Mahakumbh” at Allahabad is the biggest mela in India and,
with its focus on `cleansing' is a good fit for the health


Promotion in Melas
Lifebuoy for health' message of the brand". Innovative communication
tools were used at the mela to communicate the importance of health and hygiene. “The
company 14 stalls at various points in the mela grounds.
Some hand-carts have also been deployed for increasing access. The numbers of both
was increased based on response. ``The activity aims to build awareness in the target
audience about hygiene and health through product demonstrations". People in Mela
were asked to put there hands below some special camera where the 7 year could see the
germs on their hands and were asked to wash their hands with lifebuoy and then see the
difference. These type of promotional activities worked in these melas.


Swine flu campaign
Flu fighter -The flu, caused by the H1N1 virus, has caused several deaths across the
country and has spread panic in households. Schools have been shut in cities across India,
while hospitals are struggling to cope with the rush of patients. Its largest victims are
children who don’t have a strong immune system. Brand consultants and experts feel this
will give the brand the much-needed boost.
Hindustan Unilever’s latest salvo is its new communication centred around swine flu.
The “public interest advertisement” opens with the image of a mother washing her child’s
hand. An informative voiceover follows about the importance of washing hands before
eating, after sneezing, shaking hands or touching shared surfaces which can help prevent
swine flu. A print campaign was also launched.
Hindustan Unilever, or HUL, India’s largest consumer goods company by sales, is
plugging Lifebuoy soaps and hand washes in newspaper advertisements as products



26
Promotional Strategies of different FMCG brands in India


“proven to protect from H1N1 type virus”. “Wash away swine flu germs,” goes the tag
line on advertisements running across media platforms, including television and print.
Lifebuoy sales seem to have won a lift as consumers take precautions to guard against the
risk of swine flu, which claimed its first life in India in August when a Pune teenager died
after being infected. “The ads are all over the media and it has definitely created an
impact.
Hindustan Unilever, on its part, plays it down and maintains that it has always kept the
health proposition in mind. “The current advertising campaign is an extension of our
effort to use mass media to effectively communicate to people at large to increase
hygiene awareness to combat this health threat,” says a company spokesperson.
Way back in 1985, Lifebuoy’s entry into the Indian market coincided with the outbreak
of the plague epidemic. That’s when Lifebuoy became a household name in the country.
“Lifebuoy hai jahan, tandroosti hai wahan”, (Where you have lifebuoy, you have good
health) ran the long-playing jingle. Some time in 2002, Hindustan Unilever came up with
a health and hygiene programme called the Lifebuoy Swasthya Chetna (Lifebuoy Health
Awareness) in media-dark villages to spread awareness about the importance of washing
hands with soap. Through this initiative, Hindustan Unilever has spread itself across
53,000 villages reaching out to as many as 120 million Indians. The insight here was that
regular usage of soap helps reduce illnesses like diarrhoea, respiratory infection, eye
infection and so in children. This was underscored by the fact that diarrhoea is a major
cause of death in the world today. It is estimated that diarrhoea claims the life of a child
every 10 seconds and one-third of these deaths occur in India.A year back, Lifebouy
came out in aid of the victims of the Kosi floods in Bihar and Aila cyclone in West
Bengal. Therefore, the swine flu initiative was a natural extension for HUL as a brand.
Lifebuoy took on the responsibility to raise awareness about swine flu and how it can be
prevented as a social cause campaign to reduce the risk of infection.


Lifebuoy Swasthya Chetna Campaign
The Company has continuously designed innovative promotions to reach the rural
markets. Lifebuoy in its rural contact program called “Lifebuoy Swasthya Chetna”,
where it spread information on how washing hands can keep diseases away, targeted a



                                                                                         27
Promotional Strategies of different FMCG brands in India


population of 5 crores in 15000 villages. It also promotes general hygiene in rural areas
that are difficult to reach through usual marketing campaigns such as television, press or
in-store advertising and promotions. It applied a 2 prong approach.
HUL employed Health Development Officers and Health Development Assistants who
went to all the villages and educated the community through lectures
and community meetings.
They returned to the villages after 2 months, offered toys, badges and medals to children
who had made it a habit to wash hands regularly (read saved
“Lifebuoy” soap wrappers) and a certificate to the children who had won these badges
most often.
The campaign has three communication tasks:
•    To establish the presence of germs, even on clean hands, through the use of a 'glow
     germ demo kit' that has been developed by Unilever for use in Lifebuoy Swasthya
     Chetna. The simple and powerful tool makes unseen germs visible.
•    To establish the consequences of these hidden germs, which when ingested, can
     cause stomach infections and diarrhoea, or be transferred to eyes causing painful eye
     infections, or infecting wounds.
•    To establish how current practice is not enough to fight these germs by using the
     glow germ demo kit to demonstrate that washing with water is not enough, and that it
     is necessary to wash hands with soap for germ protection.
Tools used to communicate the central Swasthya Chetna message are adapted according
to the specific audience.
Lifebuoy teams visit each village several times, engaging all segments of the community
and ensuring the formation of local 'self-help communities' that can sustain the message.
School children, being initiators of change, make excellent ambassadors of
communication, provided they find it fun and engaging. The element of Lifebuoy
Swasthya Chetna that involves children focuses on fun, using stories, games, songs and
quizzes. Efforts are made to ensure that the learning does not fade over time.
Additionally, these visits also include a meeting with the Panchayat (village
elders).Covering 130 million people in 30,000 villages since 2002, the Lifebuoy
Swasthya Chetna programme has made its mark as the single largest private hygiene



28
Promotional Strategies of different FMCG brands in India


education project in the world. The Swasthya Chetna programme will be re-launched in
2009, and will cover even more villages in India as part of the Lifebuoy brand's crusade.


Banaye Healthy
Hindustan Campaign
Lifebuoy conducted a 17
state capital survey among
mothers to understand the
perception and satisfaction
levels of the overall health
of their children and the
important factors that
influence them. The
findings of the health report led to 'Banaye Healthy Hindustan' signature campaign which
was launched on the occasion of World Health Day. Hundreds of school children
between six and twelve years gathered at two of India's historic monuments, India Gate,
Delhi and Gateway of India, Mumbai and signed an appeal to health experts and
authorities to take care of their health concerns. Lifebuoy also launched a health rally in
Chennai, Hyderabad & Jalandhar to generate awareness about the latest threat – swine
flu.




D      ettol celebrated its 75 years of existence in 2008. This highly
       popular antiseptic brand has come a long way since 1933.
After a plethora of extensions and experiments, this brand is still
ruling the Indian market as the most preferred antiseptic lotion and
also            as                a              premium                  soap.
The brand celebrated its 75 years by reinforcing the germ killing positioning and the
tagline " Be 100% sure ". The brand is currently running a campaign highlighting the
efficiency           and          the          multi-uses            of           the   product.
In marketing theory , it is taught that one of the strategy for a brand which has reached



                                                                                             29
Promotional Strategies of different FMCG brands in India


the maturity stage of PLC is to find new uses for the product. The Dettol brand is
currently in the process of discovering those new uses for the product. When the
consumer uses the product for different purposes, the sales naturally increases.
The best way to find the new uses for the product is to ask the consumers. Dettol did just
that. It ran a series of promotions asking consumers to tell the company , how they used
Dettol.
The brand asked the consumers to contact them and tell the company on the multiple uses
of the product and thus gained lot of insights into the various uses of the brand.
The brand later came out with a series of campaign highlighting the various uses of this
antiseptic. Dettol now taken the platform of a multi-use antiseptic which can be used
during    bath,    to     clean      wounds,       to     sterilize     clothes,   floor   etc.
Although homemakers has been using Dettol for all these, the company has now taken
these uses as a part of the core product. The brand is trying to break the image of Dettol
as an antiseptic which is used for cleaning wounds.
Along with this initiative, the brand also reinforced its commitment towards hygiene. The
brand has selected hygiene as the core brand value and theme which it will fight for.
Unveiling new campaigns and public awareness rallies, FMCG majors such as Dabur,
Reckitt Benckiser and Hindustan Unilever Ltd (HUL) are trying their best to
communicate what their respective brands can do to prevent the spread of the virus. Apart
from Dabur’s campaign, HUL and Reckitt have been enhancing the ‘health-oriented’
equity of their flagship brands such as Dettol and Lifebuoy to target consumers.
Meanwhile, soap and hand wash brands such as Lifebuoy and Dettol have also been
doing their bit to create new communication about swine flu. For instance, Reckitt’s
Dettol brand has decided to support the Global Hygiene Council to conduct doctors’
conferences on swine flu prevention. So far over 1,000 doctors have attended these
sessions. The plan is to reach out to doctors in all key cities in the country to raise
awareness on prevention measures and readiness.
The company has used print, television and online mediums to educate consumers about
hygiene and its importance in its brand campaigns. Recently, its Swine Flu campaign
guided consumers about the precautions which are required to fight the deadlyinfluenza.
Sethi also informs about an H1N1 Flu (Swine) digital campaign of Dettol, which



30
Promotional Strategies of different FMCG brands in India


positions itself as 'Dettol kills 99.9 % bacteria and Flu viruses' and educates the
consumers about the disease.
The digital campaign seems to be an endeavour by Reckitt Benckiser to leverage the
rising number of searches on Swine Flu, to awareness on how Dettol can help people
maintain personal hygiene. As a result The market share of Dettol increased from 6.4 per
cent in June 2008 to 8.1 per cent in June 2009, placing it ahead of Wipro's beauty soap
Santoor as the country's third-largest soap brand by value.


Promotional offer
Dettol Fresh range has been introduced in Bar soaps and Liquid handwash. The bar soaps
are priced at Rs. 18/- and Rs. 29/- for 70gm and 120gm respectively. The liquid
handwash will be available in three sizes - 250ml pump at Rs. 55/-, 185ml pouch at Rs.
30/- and 900ml refill pack at Rs. 135/- The pricing is at par with the existing portfolio of
Dettol soaps and liquid handwash.
As part of an introductory offer, a discount of Rs. 2/- and Rs. 4/- is being offered on
70gm and 120gm soap bars respectively. This offer was valid during the month of
February and March 2009.




S    antoor, India's third-highest selling
     soap brand, and South India's second
biggest   soap    brand     has    been       built
assiduously   with    advertising      that    has
presented the Santoor Woman in a 'mistaken
identity' situation. The campaign, which is
in its 20th year, keeps getting refreshed
every two years. Women want their skin to
lie about their age. The image managers of Santoor, which has become the largest selling
soap brand in South India, has made that the main selling point of their promotion
campaign over the years. Previously in tune with the mood of the country Santoor came
out with a film that shows the Santoor woman entering a voting booth, to cast her vote,



                                                                                          31
Promotional Strategies of different FMCG brands in India


only to be stopped for 'age proof'. Again a new interpretation of the mistaken identity
theme.


Ageless skin campaign
Over the years pricing obviously played a crucial part. Santoor was originally launched in
1985 as an ordinary soap with sandalwood and turmeric being its main ingredients.
Though Moti and Mysore Sandal soap were the other brands which had sandal as main
ingredient, they were available for a premium. Wipro tried to position the soap in the
skincare segment at a popular pricing. However, when the company realised that by
banking on ingredients may not bring good results for long, it decided to reposition the
brand from being ingredient-oriented to benefit-oriented on a platform of ‘younger
looking skin’. The theme of ‘ageless skin’, captured first in a TV advertisement 20 years
back, has remained constant over the years. And the company intends to keep it that way
as long as it’s bringing the right results.
“While the theme has remained constant, the Santoor woman has evolved. In the first two
years, the Santoor woman was at a wedding ceremony; she was buying bangles; she was
buying a book etc. After that she began going to aerobics classes, and then after four-five
years we took her to do dress designing. Interestingly Santoor had come out with a
cricket film in time for the World Cup.
As a result of the campaign women see themselves in every single Santoor soap ad. That
may not be an exaggeration as women are surely buying the soap in large numbers. In the
first quarter of the last fiscal, Santoor became the largest brand in its category in South
India in value market share, though the company has just 7.5 per cent share in the Indian
personal care soap market worth around Rs 8,000 crore.
In other markets, Santoor has gradually begun to garner market share. In Maharashtra, it
is number three in terms of value though the brand is almost neck-and-neck with
Lifebuoy in rural Maharashtra, with a market share of 22.7 per cent (Lifebuoy is at 22.9
per cent).




32
Promotional Strategies of different FMCG brands in India




W        hile FMCG (fast moving consumer
         goods) products usually take off in the
urban centres, and then spread through the hub
format, Medimix was pitched in the villages
first. The only alternative to medimix was
Chandrika soap, which had adopted a direct
marketing approach. Officials at medimix used
to attend numerous village melas and talk to the people. Today, of the three lakh tonnes
of soap sold, ayurvedic soap comprises 7 percent, of which medimix has 3 per cent.
Medimix is a medicated soap that is 100 per cent handmade is exempt from tax and rural
consumers seem to be attracted to the medical qualities of the soap far more than they are
to the same qualities in a cosmetic Today when a villager visits a city he asks for
Medimix soap by name. No offers, no schemes, no inducements. As Chandrika soap was
following the monopoly of direct distribution. Medimix decided to woo the stockiest and
distributors and claims there are 25-year-old loyalties here. "From 1969 to 1990 growth
was slow 'But when S. Pradeep joined the company as managing director the firm took
off in just four years."
A firm decisions were taken that Medimix would aggressively market to over 3,000 small
hotels all over India, even in small towns. Its a pleasantly surprised to find that even
foreign tourists to places such as Pondicherry were impressed by the medicated quality of
Medimix. Medimi decided not to compromise on the packaging or appearance or the
perfume or colour of the soap to gain entry into five-star hotels. Hotels will never buy at
the maximum retail price (MRP), so they supply at cost.




                                                                                           33
Promotional Strategies of different FMCG brands in India




T     he great Indian brand wagon started nearly four decades
      ago. Great brands sometimes outlast their ambassadors as
proven by Lux which celebrated its 75th anniversary in India.
Lux campaigns have wooed millions of people over the decades.
Popularly known as the beauty soap of film stars, Lux has been
an intimate partner of the brightest stars on the silver screen for decades. An ode to their
beauty, an announcer of their stardom, advertising campaigns on Lux have featured film
                                         stars across the nation, promising their beauty and
                                         complexion to ordinary women.
                                         With top movie stars – from Madhubala to
                                         Madhuri, from Babita to Karisma and Kareena
                                         having endorsed the goodness of Lux over
                                         generations, it was natural that the brand has built
                                         equity as the best beauty soap in India.
                                         From the beginning Lux, by using a leading film
                                         star of the time, has fulfilled the consumers’
                                         aspirations of using beauty soaps via the rationale
                                         ‘if it’s good enough for a film star, it’s good for
                                         me. This later moved into a transformation role of
                                         having a bath with Lux, which transports the user
into a fantasy world of icons, film stars and fairy lands.
The first ambassador, Leela Chitnis featured in a Lux advertisement which flagged off
the Lux wagon. She gave way to a galaxy of stars which includes Madhubala, Nargis,
Meena Kumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu, Hema
Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi, Aishwarya Rai and Kareena
Kapoor. The last frontier for most actors aspiring to stardom is becoming a Lux
ambassador. The brand has outlasted many soaps. From the beginning, Lux became a
household name across the country




34
Promotional Strategies of different FMCG brands in India


Change in communication strategy
However, the communication was slowly seen to be losing relevance, as consumers were
beginning to question if the film star actually used the brand.
In addition to this, several competitive beauty soap brands had begun advertising using
similar methods of communication. In this context, the global brand team for Lux
developed a new communication strategy. This strategy – bring out the star in you – for
the first time moved the brand away from the long-running film star route. The film star
still features in the new communication but not as her gorgeous self but rather as an alter
ego/projection of the protagonist (a regular girl), for a few seconds of the entire ad.
Thus, for the first time the film star was used as a communication device and not as the
main feature of
the     ad.    The
move          away
from the film
star    and     her
fantasy world to
a regular Lux
user, with the
focus    on     the
protagonist’s
star quality, is a
change from the norms set by Lux advertising in the past. With the new communication
strategy, the film star is used purely as a communication device to portray star quality in
every Lux user. This can be significantly seen in the latest TV commercial of Lux Crystal
Shine where Priyanka Chopra is portrayed as a normal woman.
This idea – bring out the star in you – puts the consumer at the heart of the brands’
promise. This promise goes beyond the functional deliverables of soap, beyond bathing
and the bathroom to the world outside. It’s a world where with Lux on her side, an
ordinary woman can impact her world with her own star quality. This is a successful
attempt to bring the brand closer to its users and to give it a more youthful and
contemporary image.



                                                                                          35
Promotional Strategies of different FMCG brands in India


Prominent Sales Promotion Schemes Used By LUX
Lux presented 30 gm gold each to the first three winners of the Lux Gold Star offer from
Delhi. According to the promotional offer that Lux unveiled in October 2000, a consumer
finding a 22-carat gold coin in his or her soap bar got an opportunity to win an additional
30 gm gold. The first 10 callers every week got a 30 gm gold each.
The offer could be availed only on 100 gm and 150 gm packs of Lux soap.
Lux Star Bano, Aish Karo contest: All one needed to do was buy a special promotional
pack of Lux soap. The pack comes with a special scratch card. The 50 lucky winners and
their spouses were flown down to Mumbai to live a day like Aishwarya Rai would. They
could also be given gift vouchers worth Rs 50,000 from Shoppers' Stop along with an
exclusively designed Neeta Lulla sari and a beauty makeover by Michelle Tung,
Aishwarya's preferred designer and stylist. The pièce de résistance was a dinner date with
Aishwarya Rai herself.
Lux celebrated 75 years of stardom with the Har Star Lucky Star activity.
All wrappers of Lux had a star printed inside them. If the consumer found written inside
the star, any number from “1” to “5”, she would get an equivalent discount (in rupees) on
her purchase from her shopkeeper. If the consumer found “75 years” written inside the
star, she will get a year’s supply of Lux free.


LUX PR Activities
Press relations:
Lux has been maintaining constant
communicating with its customers
and potential customers, of the
various developments taking place
in the brand by using press
relations.
Events:
Lux    celebrated    75    years     of
existence in a grand way by
unveiling Shahrukh Khan as their



36
Promotional Strategies of different FMCG brands in India


latest brand ambassador. Kareena Kapoor, Juhi Chawla, Sridevi and Hema Malini graced
the event and made it special. All the stars have endorsed Lux in the past. The event was
held at the grand Intercontinental in Mumbai
Limited edition:
Coming up with limited edition of the brand is also a way of attracting attention towards
the brand. It creates a buzz and a feeling of urgency to try out the product and helps in
promotion of the brand. This strategy was also implemented by Lux by bringing out
limited editions like Chocolate Seduction, Aromatic Glow, Festive Glow and Haute Pink




O     ver the first three decades of its
      existence, the brand took the platform
of protection from body odour. But the markets were gradually changing. In 1986, in an
attempt to modernise the image, 'New Cinthol' soap was launched with a new-look
packaging, shape and advertising, using celebrities like Vinod Khanna and Imran Khan.
The communication campaigns developed strong, confident and active associations with
Cinthol- attributes that went on to become an essential part of the brand imagery.
In 1989, in an attempt to capture a share of the lime soap market, Cinthol Lime was
launched. The attempt to capture a segment of this developing market was a resounding
success: it grabbed 8% market share in six months. In 1992, Cinthol Cologne was
launched to extend the brand franchise into a modern and new fragrance.


                        cinthol-vinod-khanna


                                               cinthol-imran-add


By 1993, Godrej realised that it had to re-jig the brands to keep pace with the changing
environment. The three variants that had been launched post 1986 were brought under the
Cinthol International umbrella – Cinthol International Spice, Cinthol International Lime
and Cinthol International Cologne.



                                                                                      37
Promotional Strategies of different FMCG brands in India




A complete positioning overhaul was undertaken between 1993 and 1995. Shah Rukh
Khan became the brand's new icon. His panache matched the brand's new platform:
revitalising and re-energising. With the launch of Cinthol Fresh in 1995, the brand was
extended into the popular segment as the first popular segment lime soap. It was a
runaway success. It was redefined as a family soap with the famous 'Tan taaza, man
taaza' campaign in 2000.
Currently, Godrej plans a complete makeover of its flagship soap brand Cinthol and has
hired Bollywood actor Hrithik Roshan as a pitchman. The brand, which was launched in
1952 as the first deodorant soap in the country, has been through several changes since
then. It was initially positioned as a male-centric product but later it was repositiioned as
family soap but now, the company plans to pitch it as a youth-centric brand, along with
launching new products under the same brand name.


Promotion in rural market
Most fast moving consumer goods (FMCG) companies have a two-pronged strategy to
tap rural markets. It comprises launching nano packs and scaling up rural distribution.
Godrej Consumer Products Ltd (GCPL) is going a step further by adding a regional
advertising component.
The company advertises on Doordarshan, local TV and radio channels, the local press
and outdoor media. For its top-performing brands, it spends most of the cut-out budget on
regional advertising only. "For Godrej No. 1 soap, 100 per cent spends go in regional
advertising. For Cinthol, it is more than 50 per centThe strategy has borne fruit. Godrej
No 1 is now the number one soaps player in the north. Its annual sales exceed Rs 500
crore and it is the country_s third largest soap brand. Cinthol_s market share has
increased from 2.5 per cent to 2.8, while Cinthol deodorant has grown by 50 per cent in
the second quarter. For Expert, the company is running a campaign wherein it brands
local barber shops and salons under the _Expert_ brand. Under the programme, its sales
team introduces its products to rural folks through barbers, engaging the latter to co-brand
their shops or salons as Expert salons. The company has engaged 50,000 barber shops
and salons under this programme.



38
Promotional Strategies of different FMCG brands in India


Price points are also important. Godrej has also been rolling out nano packs priced
between Rs 5 and Rs 10. Besides Godrej No. 1 (Rs 5), Cinthol (Rs 6) and Expert (Rs 10),
a couple of months earlier, it introduced Nupur (mehndi) in Rs 5 and Rs 10 packs.




Washing Powders

E
     ver heard of a detergent that praises its foe? We have
     one which says _Daag achhe hain_ very confidently.
For any other brand, it would have been difficult to
convince the customers about the product with such a
paradoxical statement, but for Surf Excel, which can easily
be called as one of the most powerful detergent brands of
India, it seemed a cake walk. What_s more, the brand not
only focuses on its generic space of a detergent but also on making a social difference in
the lives of its consumers. Surf Excel_s social awareness campaigns like _Do bucket
paani ab rozana hai bachana_ and the scholarship campaign for unfortunate students too
endear the brand to the morally responsive Indian consumer. Right from _Lalitaji_,
representative of the true-blue cost-conscious Indian woman, till the inspiring storyboards
of today, Surf Excel has done it all and in style.




                                                                                        39
Promotional Strategies of different FMCG brands in India


Innovation truly distinguishes leaders from wannabes, and as detergent adverts go, Surf
Excel has proved to be the last word – both in terms of product offering and advertising
communiqué.. The era of Lalita Ji ensured that Surf represented the woman of that epoch,
which in turn managed to instill confidence among consumers. Surf transformed itself
into Surf Excel in 1996 with its campaign, ‘Kadi Safai, Magar Pyaar Se’, clearly
differentiating itself from the herd by offering a supplementary benefit of care. While
competitors such as Rin, Ariel, Tide and Henko were positioning themselves as
detergents that would aid in the removal of dirt by virtue of technological expertise, Surf
Excel chose to walk on an entirely different path. And now, with its plucky glorification
of dirt, it’s written the new clean-up mantra, ‘Daag Achche Hain.’ In sync with this
credo, the latest commercial of Surf Excel
does not rely on thematic communication like
the previous TVCs.
The concept was that while kids get stuck on
one thing, stains get stuck in 10 different
places.” Surf owns the distinction of being the
first ever detergent brand in India to have
begun advertising on television. The brand
has optimally utilised the medium of TV to
bring across the intrinsic worth of ‘bucket
wash.’ From placid and peaceful to feisty and
quick-witted, Surf Excel today practises a
refreshing modus operandi to speak to its customer. The brand’s advertising gained a
humongous amount of exposure by flagging off a host of in-store programmes and road
shows that entrenched it in the good books of the consumer. Being an overseas brand,
Surf has excelled in Indian markets for decades together – by no means a small
achievement – and marketing gurus admire the brand for its sheer tenacity.




40
Promotional Strategies of different FMCG brands in India


Distinctions in promotion of Surf
•   Surf was the first brand of detergent that was advertised on TV. It is advertised on
    more than 300 channels across the globe .
•   Introduced the concept of bucket wash to housewives who up till now used to
    washing clothes with laundry soap bars.
•   Brand to set up a one-stop shop - called Care line - for people seeking solutions to
    their varied laundry problems.
•   Surf Excel underwent various changes in its Brand Communication; from ‘Lalitaji'
    to 'dhoondte reh jaaoge' to 'jaise bhi daag ho, surf excel hai na', and is today
    communicated on the platform of 'Dhaag achcha hai'.
•   HLL is now reworking the Surf Excel strategy by moving away from positioning
    the brand on functional benefits, to building an emotional connect.
•   Surf Excel is currently running two campaigns riding on the popularity of the "Daag
    Ache Hain" ( Dirt is good) campaign.
•   The new campaign too strikes a chord with the consumers. Power of a "Big Idea”.
•   The second campaign takes a cue from the World cup. The ad features a group of
    kids preparing for World Cup 2015.
•   The company has re-packaged the product using brick packaging which is a first
    among detergents in the country.


Radio city campaign
Surf Excel, a leading detergent brand from Hindustan Unilever Limited, has come
together with India’s leading Radio Network, Radio City 91.1 Fm to celebrate
International Peace in Mumbai, where Children across the city got dirty for a noble cause
and spread the message of peace in a unique & colorful way.
Children across Mumbai are invited to participate in this activity through an on air
campaign on Radio City. Across schools, kids will leave colorful hand impressions on
multiple canvases. Surf Excel will then showcase these canvasses on hoardings and in
malls across the City, in a bold statement for World Peace as defined through a Child’s
eyes.




                                                                                      41
Promotional Strategies of different FMCG brands in India




W        hen we think of strong detergent in
         general and low cost in particular,
Nirma is the first brand which comes to our
minds. Everyone remembers not just these
lines but also the tune!
          “Washing powder Nirma,
           Washing powder Nirma;
       Doodh si safedi Nirma se aaye,
       rangeen kapda bhi khil-khil jaye;
       Rekha, Jaya, Meena aur Sushma,
             Sabki pasand Nirma”


The kind of impact that Nirma’s simple “Dancing Girl” advertisement managed to have
on prospective buyers was phenomenal. It perhaps was the most famous audio-visual of
its times. And it remained etched in the minds of people for a very long time.
Advertisements of Nirma focus on the “performance” and “cost effective” features of the
washing powder which has made it popular in most Indian households, who have been
using it for many years now. This product is targeted for middle class and lower middle
class population of India. Washing Powders have undergone a number of changes in
terms of composition, advertising etc ever since they were first introduced. And
consumer preferences have also changed accordingly with people more comfortable with
more sophisticated brands. Yet, Nirma with its distinct yellow color (later which became
blue) does crop up somewhere in the mind space of consumers, even nonusers.
The detergent brand that started out of Karsanbhai Patel's 100 square feet workshop in
1969     continues   to     be    popular      in   middle-class      homes      of   the   country.
Recently Nirma launched the 'underwater' commercial, which showed dancers moving
with flowing fabric - a metaphor for clothes being washed in a bucket.
An important point in the ad was that it did not use the iconic Nirma jingle. This was a
first since 1982, when the first Nirma ad was made. Now, Nirma wanted its
communication to get back to talking about the dirt tackling properties of the detergent,



42
Promotional Strategies of different FMCG brands in India


as well as use the legendary 'Washing powder Nirma' jingle


The brand was firm that it did not want to carry on with the montage film route; it needed
a different take on dirt removal. The ad opens on the shot of a vehicle rolling into a
puddle. A large amount of slush is about to fall onto a woman who is passing by. But just
as the slush is ready to land on the woman, she sternly turns towards the puddle. Pointing
her   index    finger   at   the    slush,     she    says,    "Nirma.      Washing   powder."


The slush pauses, surprised at the woman's words. She continues with the words of the
jingle, in a firm tone and without any music, and the slush begins to feel threatened.
Finally, she walks away untouched by the slush, which plops back into the puddle, much
to the surprise of the onlookers. Without any change to the product itself, the TVC
conveys the fact that dirt had better stay away from Nirma. Though Dhyani was skeptical
about whether the big bosses at Nirma would like the firmness of tone in the jingle, he
was pleasantly surprised when they were glad with the strict stand.
Nirma's success is synonymous with its advertising and marketing strategy. When
Karsanbhai Patel started selling his detergent powder, he decided to call it Nirma, derived
from the name of his daughter Nirupama. In the early years, the Nirma packet featured a
lady washing a garment. Later, however, the design was changed and an image of his
daughter was featured on the pack. The white dancing girl, featured in Nirma's television
advertising, is perhaps the most enduring image of Nirma. Though Ms. Patel passed away
in a car accident, she continues to live on in the corporate logo and the best selling brands
of the company.
Nirma's advertising has always focused on the value-for-money angle. Its simple and
catchy jingle - Dudh si safedi Nirma se aye, rangin kapda bhi khil khil jaye - has
continued to echo in the drawing rooms of middle-class Indian homes through the
decades. While the jingle stresses on the product, it also salutes the savvy and budget-
conscious Indian housewife. The jingle, which was first aired on radio in 1975, was
broadcast on television in 1982. It is one of the longest running jingles and the spot has
seen very few changes since the time it was first aired.




                                                                                           43
Promotional Strategies of different FMCG brands in India


Nirma's promotion strategy, too, has many firsts to its credit. The company pioneered
product sponsorship through the electronic media. Besides, the company has developed a
unique advertising strategy - new products are launched with no advertising support.
Once the distribution glitches are sorted out and the product reaches the shelves of
retailers, the company begins to advertise it. The umbrella branding strategy helps to give
new products instant recall without increasing the advertising expense.
Nirma used radio, posters, banners and mobile vans among others as better media
options. It was also one of the first major advertisers on the National Network, a fact
borne by its jingle (Nirma Detergent tikia, iske jhaag ne jaadu kar diya), which still
generates instant recall. When you hear the all too-familiar tune Washing Powder Nirma,
you instantly know what it is talking about. The title 'Nirma Girl' going round and round
on her feet and her white dress rising fluff too made for a strong mnemonic for the brand.
This stood up to Surf's Lalitaji's "samajhdari."



Segment – Cosmetics
                                                       Promotional tools over the years
                                                       • TV Campaign
                                                       • Fairness Meter
                                                       • Fair       &      Lovely    Scholarship
                                                            Programme       2007    on   Reliance
                                                            Mobile or R World (Aug 14 – Sep
                                                            17, 45,000 Response
                                                       • Getting the Dream Man there were
                                                            a series of films made on getting
                                                            the man of one’s dreams. In
                                                            addition, Fair & Lovely also spoke
     to the married women about keeping the spark in the marriage alive.
• The Airhostess ad. A young dark skinned colored girl’s father laments he has no son
     to provide for him, as his daughter salary was not high enough-the suggestion being
     that she could not get better job or get married because of her dark skin.



44
Promotional Strategies of different FMCG brands in India


• The girl then uses the cream becomes fairer, and gets better paid job as an air hostess-
    and makes her father happy.
• Theater Actress Advertisement
.
Fair and lovely scholarship
The Fair & Lovely scholarships are awarded annually to deserving young girls who
intend to pursue higher education in India leading to Graduation, Post-Graduation and
PhD. Awarded by the Fair & Lovely Foundation, the Rs 100,000 )US $ 2500) scholarship
is meant for women ‘with an aptitude and ambition to achieve their goals’.
To provide visibility and synergy to the Fair & Lovely Campaign - Reliance
Communications’ R World platform was thought to be the best medium for advertising
the Scholarship programme for women as it gives a high reach in the desired target group
The Foundation specifically targets women who are from the low-income groups in the
rural and urban India.
This being a CSR activity the objective was to enable lead generation of potential women
candidates with a cost effective campaign as Hindustan Unilever Ltd did not include the
traditional media – TV & Print in its plan. To break free from the clutter of the traditional
medium and be the first brand under the Hindustan Unliver Limited umbrella to explore
the mobile platform which has never been used by the company in India before.
Induce call for action by enticing the user to fill in personal important details after
sharing the Scholarship and Fair & Lovely Foundation information which then could be
followed upon to shortlist the applications received.


Banner Advertising: Fair & Lovely Scholarship clickable banner on top of the screen on
the Main Menu of the Reliance Mobile World in WAP handsets.
The Banner was conceived to build rapid awareness about the Fair & Lovely Foundation
and scholarship program.
Microsite: The banner was also linked to the microsite which captured the essence of the
program in brief and allowed the interested users to apply then and there.
Millions of Impressions )more than 2 million impressions) have been recorded on the
Fair & Lovely Foundation Banner Ad



                                                                                          45
Promotional Strategies of different FMCG brands in India


The Banners were rotated / refreshed at regular intervals to maintain saliency & ensure
that it does not become a blind spot.


Fair & Lovely Scholarship Zone: Lead Generation Zone for the fair & Lovely
Scholarships
Aspiring women could apply for this scholarship through Reliance Mobile Phones’ R
World for the first time. Short-listed applicants were to be contacted by Fair & Lovely
Foundation
Potential students can send their entries through Reliance Mobile World on R World>Hot
N New>>Schlrshp Zn
Circles targeted to tap maximum number of applications – UP, AP, Maharashtra, Madhya
Pradesh &Chhatisgarh, Tamil Nadu, West Bengal and Karnataka.
Candidates could fill-in important information such as name, age, area of interest to apply
through the Reliance Mobile World and apply instantaneously for the scholarship.
The zone also has detailed information about the Scholarship program and picture of
one of the previous scholarship winner – Amrita Singh which will inspire others to apply
More than 30,000 students have applied on the Reliance Mobile World till date, filling in
all 4 inputs required for a successful entry
SMS Blast: SMS has been sent to all subscribers in the select circles for driving traffic to
the Scholarship Zone, encouraging students to apply.
IVR: The scholarship Program has also been promoted through the IVR in select circles.
The message relayed gave information about the program and directed the subscribers to
apply through the Reliance Mobile World.
Short Code: Subscribers can also apply by responding through the Short Code 51234 to
Reliance Communications.
Reliance Mobile World Website: Campaign details have also been uploaded on the
Reliance Mobile World website




46
Promotional Strategies of different FMCG brands in India


The Campaign Results




Promotions in Rural market
When Hindustan Lever, the fast-moving consumer goods numero uno, embarked on an
exercise in 2002 to promote its Fair & Lovely brand in the rural markets, the brief was
simple and clear: the brand was being looked at by rural consumers more as a one-time
make-up product rather than as a process product and this mis-positioning had to be
corrected right away. The challenge was to convey to the consumers that this product had
to be used regularly for a visible difference in complexion to happen.
Lever’s solution was an out-of-the-box one: The company created a brand ambassador—
an educated woman in her mid-twenties who was seen as a trendsetter—to spread its
gospel among the village’s women folk. The person was christened the ‘Fair & Lovely
Didi’, a person who would educate women to become sarva gun sampan (i.e., replete
with fine qualities) by giving them cookery tips, tips on how to do fine embroidery and so
on. By 2004, the initiative had expanded in scope to cover 11,000 villages. The strategy
bore fruit: Within two months of its operation in an area, more than 80% of the
consumers there were viewing the brand as a process product. Encouraged, HLL applied
this tactic to its other brands as well.


                                                                                       47
Promotional Strategies of different FMCG brands in India


While connecting with the rural masses has always been an integral part of Lever’s
marketing strategy, striking an emotional chord with rural India has now become the
mantra for success of every big company


Promotion:
Advertisements on Television
In serial branding with product placement in DD serials


Relationship building:
Direct Contact Programs with villagers – sales team to visit from time to time to increase
awareness, induce trial and repurchase
Find and target opinion leaders of the village to increase advocacy for our product
POP’s – danglers, shop branding, bus shelters, buntings
Target beauty parlors – to stock and advocate our product
Presence of stalls during Bazaar – offering makeovers and sampling




ITC BISCUITS
Biscuits and tea in the morning were a routine. So were the key
market players and their favorite products. The two major
players Britannia and Parle were busy biting of chunks of the
national market among themselves, with a host of smaller
brands in various regions. While the business was still very
competitive, there wasn’t anything groundbreaking. In 2003,
with ITC foraying into the segment, a lot of that changed. At
that time, Britannia and Parle held, between them over 82 per
cent of the market in value terms. ITC decided to enter the
foods segment because it’s a Rs 550,000 crore market in India. But only 6 per cent of this
is branded and packaged




48
Promotional Strategies of different FMCG brands in India


Promotions
In August 2003, a month after its launch, the company undertook a major sampling
exercise topromote the product. For two years then, the brand did all the usual rounds —
riding behind buses, blocking television spots, booking that corner space in your favorite
newspaper and so on. In April 2005, Sunfeast launched its major campaign. It signed on
Hindi film actor, Shah Rukh Khan as its brand ambassador. In the same year, as the
official sponsor of the WTA tennis championship — titled the Sunfeast Open — the
company had teenage sensations Sania Mirza and Mahesh Bhupathi campaigning for it.
But that’s not all. For promotions in southern states, Sunfeast has signed Tamil super star
Surya as a brand ambassador.


Cornetto Ice Cream
Music album campaign
Kwality Wall's Cornetto launched the music album 'Ho Jaane De' in collaboration with
Universal Music to promote its two new flavours – Black Forest Flirt and Strawberry
Tease Cake.
The music album features talented singer Raghav Sachar and the multi-faceted Shruti
Hassan. Besides the album, a unique campaign 'Dedicate and Win' was also rolled out.
This campaign promotes the expression of love by facilitating people to dedicate songs to
loved ones over the mobile or internet.



Axe Deodrant
Call Me' campaign
The study about phone conversations conducted on 750 girls by Axe research labs across
six cities in India showed that getting a girls phone number is a first step forward in the
mating game. This insight drove the new Axe “Call me” campaign idea that shows girls
giving out their phone numbers uncontrollably to guys who are wearing Axe. Besides the
TVCs a full 360 media plan was used to drive
consumers to call the Axe number. About 45 lakh calls were received on the Axe number
and 10 lakh wake up alarms were registered.



                                                                                        49

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26695443 advertising-and-promotion-of-different-fmcg-brands-in-india

  • 1. Promotional Strategies of different FMCG brands in India [By Rohit Gupta]                                                      MBA  –  IB                                                            2009-­‐11   1
  • 2. Promotional Strategies of different FMCG brands in India Index Contents Page no. Introduction 3 Sales Promotion – Ponds Case 5 Major methods of Advertising 6 Rural Promotion and Advertising – 8 Tiger Biscuit and Parachute Case Promotional activities in 2009 9 HUL (Hindustan Unilever Ltd.) 12 GCPL (Godrej Consumer Private 14 Ltd.) Segment – ORAL CARE 14 - Colgate - Pepsodent - Close up - Babool - Anchor White Segment – SOAPS 23 - Dove - Lifebuoy - Dettol - Lux - Medimix - Cinthol Segment – WASHING POWDERS 39 - Surf excel - Nirma Fair and lovely 44 ITC Biscuits 48 Cornetto Ice cream 49 Axe Deodrant 49 2
  • 3. Promotional Strategies of different FMCG brands in India Introduction The fast moving consumer goods (FMCG) sector is also a rapidly evolving one, where companies have to literally ‘move fast’ to ensure they are ahead of the competition. While advertising and promotion costs are high, companies have to frequently launch new products to expand their market share. Leading FMCG players have a vast portfolio of products and brands that keeps growing by the day. The Indian financial year starts in April while as the peak consumption season – both for agricultural and consumer products in India is in the post-monsoon phase beginning October. This also coincides with the festive season and manufacturers and retailers come out with several attractive offers and schemes for consumers. Rural India is flush with cash following the monsoon, and consumers are inclined to spend a great deal more during this period. For many FMCG companies a large chunk of their revenues – up to about 60 per cent – comes from new product launches. Companies like Dabur, ITC, Britannia Industries, Nestle and Amul are among those, which are currently unveiling dozens of new products in time for the peak consumer season. Leading FMCG firms like HUL, ITC, Nestle, Procter & Gamble and GlaxoSmithKline Healthcare – which account for almost 70 per cent of FMCG revenues in the country – spend almost 10 per cent of their turnover on advertising and brand promotion. They also focus a great deal on new product launches. With growing competition in the sector, it is natural that ad spends keep rising. Unlike the manufacturing sector, FMCG is not capital-intensive, but expenditure on promotions and branding is huge. FMCG players also have to diversify into other sub-sectors to ensure continuous growth. For instance, leading companies are now briskly expanding their presence in the bakery segment, enhancing their product portfolios by launching new brands. ITC, Britannia Industries, Amul and even a relatively smaller player like Gujarat-based Rasna, are currently unveiling new campaigns relating to their bakery product launches. The promotion strategy includes tying up with top Bollywood actors and other celebrity brand ambassadors, besides going in for high-profile launches at leading retail malls and outlets. 3
  • 4. Promotional Strategies of different FMCG brands in India Sales Promotion A sales promotion strategy is an activity that is designed to help boost the sales of a product or service. This can be done through an advertising campaign, public relation activities, a free sampling campaign, a gift campaign, a trading stamps campaign, through demonstrations and exhibitions, through prize giving competitions, through temporary price cuts, and through door-to-door sales, telemarketing, personal sales letters, and emails. The importance of a sales promotion strategy cannot be underestimated. This is because a sales promotion strategy is important to a business boosting its sales. While developing a sales promotion strategy for the product it is important to keep the following points in mind- Consumer attitudes and buying patterns, Brand strategy, Competitive strategy, Advertising strategy, and other external factors that can influence your products, availability and pricing. Sales Promotion strategies There are three types of sales promotion strategies: 1:-A push strategy 2:-A pull strategy or 3:-A combination of the two A 'push' sales promotion strategy involves 'pushing' distributors and retailers to sell your products and services to the consumer by offering various kinds of promotions and personal selling efforts. The basic objective of this strategy is to persuade retailers, wholesalers and distributors to carry your brand, give it shelf space, promote it by advertising, and ultimately 'push' it forward to the consumer. Typical push sales promotion strategies include; buy-back guarantees, free trials, contests, discounts, and specialty advertising items. 4
  • 5. Promotional Strategies of different FMCG brands in India For Example: Ponds Cold Creams Pond’s offer different cash discounts to the retailers for different quantities. 2% discount on 10000 Purchase 3% discount on 15000 4% discount on 25000 or Ponds offer A PVC jar Free on Purchase of 100 (100gm) Cold Cream. A 'pull' sales promotion strategy focuses more on the consumer instead of the reseller or distributor. This strategy involves getting the consumer to 'pull' or purchase the product/services directly from the company itself. This strategy targets its marketing efforts directly on the consumers with the hope that it will stimulate interest and demand for the product. This pull strategy is often used when distributors are reluctant to carry or distribute a product. For Example: Ponds offer low introductory prices to the customers like in case of their new product AGE MIRACLE, They give some complementary gifts. A 'combination' sales promotion strategy is just that; it is a combination of a push and a pull strategy. It focuses both on the distributor as well as the consumers, targeting both parties directly. It offers consumer incentives side by side with dealer discounts 5
  • 6. Promotional Strategies of different FMCG brands in India Advertisement Advertising is the means of informing as well as influencing the general public to buy products or services through visual or oral messages. A product or service is advertised to create awareness in the minds of potential buyers. Some of the commonly used media for advertising are T.V., radio, websites, newspapers, magazines, bill-boards, hoardings etc. As a result of economic liberalization and the changing social trends advertising industry has shown rapid growth in the last decade. Advertising is one of the aspects of mass communication. Advertising is actually brand-building through effective communication and is essentially a service industry. It helps to create demand, promote marketing system and boost economic growth.Thus advertising forms the basis of marketing. Major methods for advertising E-mail messages: These can be wonderful means to getting the word out about the business. In this we design a e-mail software to include a "signature line" at the end of each of our e-mail messages. Many e-mail software packages will automatically attach this signature line to our e-mail, if we prefer. Magazines: Magazines ads can get quite expensive. Find out if there's a magazine that focuses on your particular product. If there is one, then the magazine can be very useful because it already focuses on your market and potential customers. Newspapers: Almost everyone reads the local, major newspaper(s). You can get your business in the newspaper by placing ads, writing a letter to the editor or working with a reporter to get a story written about your business. Radio announcements: A major advantage of radio ads is they are usually cheaper than television ads, and many people still listen to the radio, or example, when in their 6
  • 7. Promotional Strategies of different FMCG brands in India cars. Ads are usually sold on a package basis that considers the number of ads, the length of ads and when they are put on the air. . A major consideration with radio ads is to get them announced at the times that your potential customers are listening to the radio. Television ads: Many people don't even consider television ads because of the impression that the ads are very expensive. They are more expensive than most of major forms of advertising. However, with the increasing number of television networks and stations, businesses might find good deals for placing commercials or other forms of advertisements. Television ads usually are priced with similar considerations to radio ads, that is, the number of ads, the length of ads and when they are put on the air. Web Pages: You probably would not have seen this means of advertising on a list of advertising methods if you had read a list even two years ago. Now, advertising and promotions on the World Wide Web are almost commonplace. Businesses are developing Web pages sometimes just to appear up-to-date. Special events: These tend to attract attention, and can include, e.g., an open house, granting a special award, announcing a major program or service or campaign, etc. Promotional activities through Media Articles that you write: Is there something in your product about you having a strong impression? Consider writing an article for the local newspaper or a magazine. In your article, use the opportunity to describe what you're doing to address the issue through use of your product. For example we do get good examples of product based articles in tribune, where sometimes products also compared. Press kits: This kit is handy when working with the media or training employees about working with the media. The kit usually includes information about your business, pictures, information about your products, commentary from happy customers, etc. 7
  • 8. Promotional Strategies of different FMCG brands in India Rural Promotion and Advertising In country like India, where the 70% of the people live in rural area, the rural market holds a lot of marketing potential. There is a wide spread difference in the standard of living between urban and rural India. In order to launch products and develop advertising for rural market there is a need to understand both the rural context and also the consumer very well. Promotion of brands in rural markets requires the special measures. Due to the social and backward condition the personal selling efforts have a challenging role to play in this regard. The word of mouth is an important message carrier in rural areas. Infact the opinion leaders are the most influencing part of promotion strategy of rural promotion efforts. To communicate effectively with rural audiences, it is important to understand the aspirations, fears and hopes of rural customers, in relation to each product category, before developing a communication package to deliver the product message. Hence, there is a strong need to build reassurance and trust about product quality, service support and company credentials in the minds of rural consumers. This is best done through the face- to-face 'below the line' touch, feel and talk mode at haats, melas and mandis. Language and regional behaviour variations should be considered while developing rural communications strategy. Although the reach of television in rural India is high, frequent power-cuts restrict viewing time considerably. With the licensing of FM channels to cover all district headquarters, the power of radio to deliver a localized message in a local language will soon be available to advertisers as a cost-effective way to reach rural masses. Rural India has a very high ownership of transistor radios and as these run on batteries, radio can once again be expected to become a popular medium for reaching rural masses One of the most popular and widely accepted Marketing Myth is that the rural consumers will only buy really cheap mass market brands. But the stark reality is that though brands like Nirma lead, but penetration of premium products has also been observed even to the lowest SEC (socio-Economic Classification). The percentages may be very small, but given the large universe, the actual figures may be significant. Thus when we are aware of the fact that brands like Nirma, Tiger biscuit, Parchute oil rule the rural market, it would be interesting to study and analyse their basic marketing inputs. 8
  • 9. Promotional Strategies of different FMCG brands in India For Example A) Tiger Biscuits: Britannia has entered in to the rural market by participating in rural melas and displaying its down market brand Britannia Tiger Biscuits. These rural melas and weekly haats have become more popular medium of rural advertising by the media planners. Apart from stockists and sub- stockists, Britannia has used traditional haats and melas to promote the Tiger brand. It has made the ongoing Kumbh Mela a major promotion and sales outlet. Whenever they come to know of a major mela or haat, they ensure that their brand is stocked in large quantities. There are hoarding, which are put up by the company in the rural areas. The hoardings are mostly put up with complete information regarding the product. The information is given in the local language in order to let people know about the product. The hoardings also have the mascot tiger which emphasises a strong healthy individual. T.V. The various ad campaigns throughout the country are done by preparing a single advt but the language in which it features is according to the regional language of that state. The ads include famous personalities like Saurav Ganguly. The ads mainly focus on the children and emphasise a strong diet for a healthy mind and body. School children in rural areas are often given small packs at a confessional rate and at times they are distributed as free samples B) Parachute Oil:   With the objective of creating awareness for Parachute Coconut Oil pouches in towns with less than 20,000 population in Tamil Nadu, and in order to convert loose oil buyers into Parachute pouch customers, Marico Industries launched a van campaign. The communication Strategy focussed on getting women out of their homes to participate in the van campaign, which was aimed exclusively for them and for the first time conducted by women. Result - A study by 9
  • 10. Promotional Strategies of different FMCG brands in India Marico showed a 25per cent conversion from loose coconut oil usage to Parachute Pouch Pack, post van campaign and a substantial increase in sales from the campaign areas. Promotional Activities in 2009 Hindustan Lever, the fast moving consumer good giant has reduced promotional offers in 2009 as it focused on profitability at a time when volume growth was back. Hindustan Lever which has launched a slew of offers in year 2008, like the 'buy three, get one free' offer on the Rs 75 multipack of Lux, which is its second largest selling soap brand has withdrawn the offer. Lux has a market share of 15.5 per cent in the Rs 7,500 crore soap markets. HUL has also raised the price of the 400 milligram Clinic Plus shampoo Rs.139 to Rs.154. Clinic Plus has a market share of over 25 per cent in the Rs.2,500 crore shampoo market. HUL has been affected by the volatility in 2008 the most, with the company losing market share across all its key soap, detergent and oral care categories. So in a bid to get the volumes back, HUL went in for consumer offers and aggressive advertising. This move worked, as the company saw a 2 per cent volume growth in the June quarter of 2009 financial year compared to a 4 per cent decline in the previous quarter of the previous year. Wipro Consumer Care has revised its consumer offer on Santoor soaps 'Buy 2 and get a Reynolds pen free' to Rs.1 discount on a soap bar of Rs.18. It’s not the case that all market players followed the same line, though. For instance, ITC launched promotional offers for its soap brands in select markets. ITC is offering a 2 +1 scheme on the Superia and Vivel Di Wills soap. It also has a 'buy four and get one free' offer on its Vivel soap. 70 per cent of the category sales in case of shampoos sachets are dominated by players like ITC and CavinKare which are running '25 per cent extra' schemes. 10
  • 11. Promotional Strategies of different FMCG brands in India Buy More Save More Companies also adopt "buy more to save more" concept to boost sales during the t slowdown. While price correction is clearly a focus area, fast moving consumer goods (FMCG) companies like ITC, Godrej Consumer Products Ltd (GCPL), Emami and Marico are also building on “tactical” promotions, bundled offers and “buy more to save more” concepts to beat the current recession. GCPL’s promotional offers, for instance, include one free cake of soap on purchase of three, and discounts on purchase of linked packs. According to officials at GCPL discounts and promotional offers are temporary means to achieve strategic ends, which could include trial and competitive reaction. Reasons for promotional offers include rewarding loyal customers, passing on cost savings to consumers and inducing trial. A few of Emami’s schemes include Emami Pure Skin worth Rs 22 free with Boroplus Advanced Moisturising Lotion worth Rs 98; five pieces of Sardija Cough drops worth Rs 5 free with 100 ml of Sardija Cough Syrup worth Rs 50, among others. In many ways, discount is a starting point as it helps create buzz and excitement and ensures higher sales. Consumers might curtail consumption of high-end products but not ‘mass’ products. During trying times, ‘save more when you buy more’ strategy always work. ITC is offering Vivel Di Wills shampoo (200 ml) free with its 75 gm bathing soap for Rs 89. ITC brands are new hence marketing efforts are geared towards enhancing consumer engagement and trial. The consumer response to brands, Fiama Di Wills, Vivel and Superia, has so far been excellent says official at ITC 11
  • 12. Promotional Strategies of different FMCG brands in India HLL (Hindustan Lever Limited) now HUL (Hindustan Unilever Limited) Hindustan Lever Limited (HLL) is India's largest fast moving consumer goods company. It is a leading player in home and personal care products, foods and beverages, and speciality chemicals. The product portfolio with its wide range of products sets HLL apart! It has achieved market leadership in soaps and detergents (Surf) as well as hair and skin care products (Sun Silk, Dove, Hamam). It is the second largest manufacturer of dental care products (Close-up, Pepsodent). HLL is also market leader in tea (Taj), processed coffee (Bru), ice cream (Kwality-Walls), tomato-based products (Kissan), jams and squashes (Kissan), and branded staples (Kissan Annapurna). With a plethora of brands, Communication becomes imperative. Every company has to communicate the presence of its products to capture a large market share. How does a company do that? There are many tools that a marketer can use: advertising, hoardings, radio, television and internet ads! What’s missing is the freebie! Is sales promotion only made up of ‘atta free with soap’? This is how HLL used sales promotion programmes to build its brands. 12
  • 13. Promotional Strategies of different FMCG brands in India 1. Consider this: When Dove was launched in the market, people had a certain reservation against the product. Why? There were two reasons: a. Price factor. Most housewives found Dove to be pretty steep and thus consumption was restrained. b. Secondly, the rumours of one of its ingredients being animal fat. HLL began a sales promotion campaign: Get Dove soap free with a kilo of Surf Excel. With this promotion tactic, HLL got the opportunity of converting “non-users” of Dove to users. At the same time changing attitudes of other detergent users by converting them to Surf users. 2. On the other hand, HLL sought to increase usage of Close-Up amongst the target audience by introducing the travel tube, initially giving it free with every 200gm pack of toothpaste bought. 3. When attacked by Cavincare of Fairever fame, HLL adopted a defensive strategy by giving awayone more Fair and Lovely free with every purchase of it(BOGOF). This is one of the many ways by which a marketer can piggyback on the brand’s standing in the market Repositioning and Repromoting Organics When Organics was first launched on the platform of “root nourishing “ shampoo, consumers were sceptical towards the positioning. No one wanted to spend thirty six percent extra when compared to Pantene. Consumers were happy using coconut oil to strengthen the roots. What did Levers do to push the product? 'Buy one get one free'(BOGOF) on every small pack of Organics. The surprising aspect is that this promotion failed to work for Levers. The next step that HLL took was of repositioning Organics. They found out that the common problem in India was hair breakage. Glucosil was added to the product for healthy hair and the product was now revamped on the grounds of beautiful and healthy hair. 13
  • 14. Promotional Strategies of different FMCG brands in India Where promotion was concerned, HLL used an entirely new outlet - bookstores! Contests were conducted there and the winners were given Organics hampers. This exercise helped a lot in brand recall thereby placing Organics on the map of the consumers’ mind. That’s the power of sales promotions in building a brand! GCPL (Godrej Consumer private Ltd) With the new strategy of tapping the middle and lower ends of the market, Godrej expects the Godrej brand name to work for him. In the low income housing market, known for fly-by-night builders, the Godrej name will be leveraged more. With all this is mind, Godrej launched the group_s first ever ad campaign for the Godrej brand rather than for its individual brands such as Cinthol soap or Godrej Hair Dye. Aimed at packaging the brand for younger consumers, the campaign showcased the group_s products for the space programme, and included sponsorship of the Indian Premier League and a show created to promote the Godrej products range, called Godrej Khelo Jeeto Jiyo. Godrej says the group will continue to build on branding. Group companies have used the campaign to target their individual advertising better. For instance, Godrej Consumer now buys ads more on Doordarshan because the brand campaign takes care of cable television. It means Godrej Consumer has an advertising budget lower than most competitors. Segment - ORAL CARE Practically all of rural India prefers cleaning their teeth with traditional products such as neem twigs, salt, ash, tobacco or other herbal ingredients, contributing to a low per- capita consumption of branded oral care products. According to WHO, India’s overall awareness of oral hygiene is still very poor. The dentist- to-population ratio is 1:35,000 in comparison to 1:7,500 as recommended by the WHO. But with burgeoning middle class and multi- pronged advertising campaigns, there is now a latent demand for the formal oral care products and this is set to rise exponentially in the coming years. Growth is also likely to emanate from consumers ‘upgrading’ to matured, value-added and innovative products in this category. Of late, growth of modern trade has also propelled brand sales, 14
  • 15. Promotional Strategies of different FMCG brands in India especially in the urban markets. Overall, the oral care sector is mainly represented by tooth- paste. Other products include mouthwashes, sprays, teeth whiteners and oral rinses. In India, there is also significant usage of toothpowders, especially in semi-urban and rural areas. In India, toothpowder was primarily targeted at people who used traditional products like salt, neem twigs and other herbal products. Brands like Colgate, Dabur, Babool, Vicco are the prominent players in the toothpowder market in India Major players in the oral care market are Colgate Palmolive India Pvt. Ltd. (CPIL); Hindustan Unilever Ltd. (HUL) and Dabur India Ltd. brand loyalty is quite high for toothpaste where CPIL and HUL together account for over two-thirds of the branded toothpaste market. In toothpowders, CPIL, which manufactures white toothpowder, and Dabur India Ltd., which manufacture red toothpowder, are the leading players, sharing three-fourths of the branded toothpowder segment. In rural areas, red and black tooth- powders continue to be very popular, with the market being led by local manufacturers. Among smaller, but fast growing companies in the oral care segment are Ajanta India Ltd., Vicco Group of Companies, The himalaya Drug Company, Anchor health & Beauty Pvt. Ltd. and Henkel India Ltd. The oral care market in India is divided into three main segments -- economy, popular or regular and premium. The brands from CPIL, HUL, Dabur India Ltd., are more popular in metros and major cities, while smaller and regional brands such as Anchor, Colgate- Cibaca and Ajanta have a stronghold in the smaller cities. In recent years oral care in India has been greatly driven by product innovation, widening of retail availability, packaging and sustained brand promotions. For a new brand to grow and gain market share, strong brand promotion in a specific category has been the chosen marketing strategy. For instance, if a product is made especially for night brushing, the marketing strategy would typically build a story around this usage. Over the years, such focused advertising (sometimes using popular brand ambassadors and television programme sponsorships) have helped many brands to connect swiftly with the target audience. For instance, HUL tried to increase its share in the Indian oral care market through the launch of Pepsodent, and campaigning with a message that communicated to kids and 15
  • 16. Promotional Strategies of different FMCG brands in India their parents the importance of protection from germs through the night. As a value addition, the next stage of the campaign was focused on ‘Germ Indicator’, which was included in every Pepsodent pack allowing consumers to see the efficacy in fighting germs for themselves. Following that, Pepsodent offered dental insurance to all its consumers to demonstrate the confidence that the company had in the technical superiority of the product. The re- launch of the campaign widened the context towards the adverse effects of “sweet and sticky” food and leveraged the fact that children do not rinse their mouths every time they eat, thereby reinforcing the power of Pepsodent in fighting germs for themselves. Close up on the other hand was positioned as a youth oral care brand from the very beginning. In 2004, the brand was re-launched with a publicity blitz that communicated virtues of a ‘Vitamin Fluoride system’ present in the product -- a powerful mix of vitamins, fluoride, mouthwash and micro-whiteners, for fresher breath and stronger, whiter teeth. Clearly, HUL derived critical mass growth from having two brands targeting two different sections of consumers – Pepsodent as a family brand and Close Up as a youth product. When Colgate-Palmolive (India) Limited (CPIL) launched its advanced Whitening toothpaste in 2005, it roped in Sonali Kulkarni of ‘Dil Chahta hai’ fame, looking at further strengthening the expansion of its whitening variant amongst the youth. The brand Colgate herbal White was also launched communicating the message of ‘pearly white teeth’ with an attractive packaging in green, white, red and blue. The advertising campaigns through television commercials used the beaver ‘gillu’ as a mascot of the product. Dabur India Ltd. launched Dabur Red toothpaste with the brand association of Star Plus channel by sponsoring one of its programmes, ‘Star Parivaar awards’ for two 16
  • 17. Promotional Strategies of different FMCG brands in India consecutive years in 2003 and 2004. Anchor White, the toothpaste brand from anchor health and Beauty care Pvt. Ltd., has been extensively promoted as a ‘family product’ with Bollywood actor Kajol along with her daughter targeting the price-sensitive middle-class segment through its convenient packs and price points. While toothpaste advertising has by and large used the traditional images and characteristics of family values, the use of humor and imagination has also been highly effective in generating brand recall for new- age oral care products. Perfetti Van Melle’s very popular ‘happydent White Palace’ advertisement is a case in point. Conceptualized by Prasoon Joshi and McCann Erickson, the ad communicates dental hygiene as a fun activity by making it interesting rather than therapeutic. Given it in- innovative departure from the norm, the commercial has clearly broken through the clutter by positioning happydent as not only a children’s confectionery but a functional product that gives healthy and white teeth. But the story is not all urban. Rural India may well be a sleeping giant; already there are signs of rural Indians shifting from traditional dental care products to brands -- especially the herbal variants -- at popular price points. Burman from Dabur explains that growth in hitherto untapped regions will be greatly driven by affordability. ““We have observed the growing demand for economically priced herbal tooth- pastes in rural markets. Therefore, Babool is well placed to benefit from this growing demand, and has been the fastest growing toothpaste brand for three years in running.” 17
  • 18. Promotional Strategies of different FMCG brands in India An appropriate product with an effective communication strategy can drive the growth further in the rural markets,” he adds. As of now, manufacturers’ and marketers’ efforts have focused on enhancing penetration -- bringing new users into the toothpaste segment – by strengthening their presence in the economy segment. Both CPIL and HUK have concentrated on building their rural distribution net- works by rolling out smaller units of toothpastes at affordable prices, and have also launched nationwide com- munity dental health programmes and informative commercials on dental hygiene in association with dental associations. The companies have also been using channels such as e-choupals and Disha to further reach the rural population. Dabur has also been participating in rural community practices, besides organizing special oral care clinics with school children to propagate the advantages of brushing which have helped them drive deeper into the market. R ecently, Colgate launched a creative billboard campaign for its toothpaste brand, MaxFresh, where the toothpaste's cooling crystals appeared to be popping out of the hoardings. The idea of the campaign was to communicate the product superiority of MaxFresh - to emphasize that it contains cooling crystals in abundance, and to highlight the fact that while other gel toothpastes freshen breath, only Colgate MaxFresh has cooling crystals that are more effective than regular gels. While the product is not new, the company built interest by adding a short code to the creative. The objective was to call people to action. The ad says, 'SMS MaxFresh to 57007 for a free sample. 18
  • 19. Promotional Strategies of different FMCG brands in India Here are few strtegies adopted by Colgate max fresh: • Colgate Max Fresh Gel- first toothpaste infused with cooling crystals that create whole new dimension of freshness. • Saif Ali Khan and Asin are the celebrity brand ambassadors. • For the launch of this new gel, interactive media was of foremost importance given the core target audience of young adults. • The USP – cooling crystals – had to be highlighted in all communication. • Campaign on: • Online: Reaching consumer across various sites. • Mobile: Downloads for consumers • Extensive online media plan • Innovations and large sized banners across portals • PPC (SEM): a customized search marketing campaign on Google • Keywords ranging from Valentine’s (topical) to Ipods (prizes) to Saif Ali Khan(brand ambassador) carried the maxfreshclub message & drove traffic to the site. • Content Sites across genres – Cricket, Movies, Business, News • Google partner sites related to bollywood/ greetings/ jokes/ mobile fun were also • part of the campaign – all building on the premise of contextual relevance. • All banners directed traffic to www.media2win.com/maxfresh • Mobile integration enabled consumers to not only download ringtones & wallpapers but also play interesting games & get a ‘Fresh Joke of the day’ by smsing MaxFresh to 58558. • Innovative rich media banners across leading sites to ensure high frequency • Rediff • Yahoo • Indiatimes • MSN • Sify 19
  • 20. Promotional Strategies of different FMCG brands in India Sponsorships/ Interactive Properties on select sites • Special sites like Galatta.com (for the south film-crazy audience) were included since the brand ambassador for the southern audience is Asin, a Tamil movie star. • All Asin related content on Galatta was branded by MaxFresh & Galatta users got to meet Asin as part of the online promo. • Innovative units such as the browser branding on Yahoo India ensured that the campaign has high impact. • This innovation re-skins the browser bar with MaxFresh brand colors and message – delivering cut through visibility. • In addition to this, rich media creative was used wherever possible to maintain impact. • Phase 2 of the campaign focused on specific games on the site to ensure visitors keep coming back • Microsite:www.media2win.com/maxfresh The micro site had a range of games, wallpapers, screensavers, viral ideas product info & a specially created dimension test – all based on the brand proposition of cooling crystals & the 2 flavours, spicy fresh & peppermint ice. • The music on the homepage was composed only for the site. • The launch of the site, timed with Valentine’s Day, promoted the viral & topical ‘Max Muuaah’ by which a user could send an e-kiss. . • Crystal Quest’ & Crystal Challenge’ required users to collect or spot the crystals in the game – in sync with the fun, energetic feel of the site. • The downloads drew on the brand ambassadors Saif & Asin. Results • Over 1 lakh unique users to the site. • Average time spent 9 minutes. • Over 25 million impressions served through the online campaign. • Generated 140,000 clicks. • Innovations- browser branding worked well with 1.5% CTR. • Downloads from the site close to 8000. 20
  • 21. Promotional Strategies of different FMCG brands in India Trial pack campaign Conscious about your Teeth? Then get a free trial pack and free oral dental advice from colgate. Colgate is a famous toothpaste company. It is giving free trial pack and free oral dental advice. To get the free trial pack, you need to fill a form which includes your personal information, contact details and other information. In personal details, you need to submit your name, email ID and occupation. In contact details, you need to submit your address, city, pincode, area, state, landline number and mobile number. Other information includes the questions like How did you come to know about this offer/promotion and Currently used Toothpaste Brands. COLGATE'S BRIGHT SMILES, BRIGHT FUTURES The Colgate Bright Smiles, Bright Futures Oral Health Educational Program worldwide was developed to teach children positive oral health habits of basic hygiene, diet and physical activity. This Program also encourages dental professionals, public health officials, civic leaders and most importantly, parents and educators to come together to emphasize the importance of oral health as part of a child's overall physical and emotional development. Under this Program conducted by Colgate-Palmolive, India children in primary schools receive instructions in dental care from members of the dental profession nominated by the Indian Dental Association. Education is imparted with the aid of audio-visuals and printed literature created by the company. Free dental health care packs, including samples, are also distributed by the company to encourage the practice of oral hygiene. Teachers Training Program is an integral part of the School Dental Health Program, conducted regularly across the country to promote preventive dental health care.Colgate 21
  • 22. Promotional Strategies of different FMCG brands in India also has launched its first-ever online school curriculum featuring fun and entertaining activitie Super Saver Offer for 'All Around Decay Protection'. Buy 200g plus a 100g tube with a Colgate Extra Clean Toothbrush in a Family Value Pack for Rs. 82/-. Save Rs. 18/-. Colgate Maxfresh Gel is the first toothpaste infused with cooling crystals giving you a whole new dimension of freshness. Get a 150g plus a 80g tube with a Colgate Extra Clean Toothbrush in a Freshness Value Pack for Rs. 79/-. Save Rs. 20/-. 22
  • 23. Promotional Strategies of different FMCG brands in India Toiletries Soaps and Shampoos The toilet soaps market is estimated at 530,000 turnover per annuum including small imports. The market is littered over with several, leading national and global brands and a large number of small brands, which have limited markets. The popular and premium brands include Lifebuoy, Lux, Cinthol, Liril, Rexona, and Nirma. Soaps form the largest pie of the FMCG Market with bathing & toilet soaps accounting for around 30% of the soap market, by value. Currently, the soap industry is divided into three segments namely Premium, Popular and Economy/ Sub popular To fight competition, major players Hindustan Unilever Ltd (HUL), Godrej Consumer Products Ltd (GCPL) and Wipro Consumer Care & Lighting are now drawing up fresh game plans. And the accent is clearly on innovation to gain mind share as well as market share in this overcrowded category. R emember the ‘Is it love? No it’s Dove’ ads? In the 1990s, when everything had to be low priced, consumer goods major Hindustan Unilever launched a brand of soap that was considered expensive, frightfully expensive , for the times we lived in. For about Rs 30 for a bar, it was nearly twice as expensive as any toilet soap brand that was then sold in India. This was a time when hanging out for coffee was at the neighbourhood Udupi restaurant that charged Rs 6 for a serving and not the Barista where a mug of coffee cost Rs 50. To get consumers living with that mindset to graduate to a brand like Dove was a big leap. Certainly the well-traveled Indian consumer who had seen and touched the brand abroad were the first set that moved towards the brand for its superior and “gentle on skin” properties. Others who sampled the brand had mixed opinions. Occasionally you heard the sob story from a neighbour on how a Dove bar got over in just four days, when the Rs 10 soap lasted for a month, giving rise to rather unkind remarks that Dove was 1⁄4 moisturiser and 3⁄4 love. This set of consumers used the bar for washing the face while a less costly soap would be used for the rest of the body, a value-for-money approach. From those use-for-special occasion days, Dove has come a long way. HUL executives 23
  • 24. Promotional Strategies of different FMCG brands in India claim that Dove has grown by 100% in shampoos and 23 by 42% in soaps. “Dove is the largest premium brand in the Hindustan Unilever portfolio,” says Rajaram Narayanan, vice president, hair care and Lakme, HUL. Now the Dove portfolio delivers Rs 500 crore in sales. Real Women Face Test The faces that represent the Rs 500 crore premium brand are of ordinary women. The faces that represent Hindustan Unilever’s (HUL) biggest premium soap brand are not familiar. For, they represent 11 ordinary women who won Dove’s Real Women Face Test – a campaign that received over 4,500 entries. Recently the fast moving consumer goods major put all of them on billboards, newspapers and on television to endorse the Rs 500 crore brand in a high voltage advertisement campaign. That’s Dove’s way of going off the beaten track in its communication strategy. Unlike other soap advertisements, the premium brand did not use the usual models or movie stars. Instead, it got real women who use the product to give testimonials of their experience with the brand. In May 2007, HUL launched Dove shampoo from Unilever’s portfolio. For Dove’s hair wash variant too, HUL initiated huge sampling in malls by setting up counters where consumers could get their hair washed and then photographed. These pictures were showcased in the Dove Gallery. As a result, testimonials were not just on TV, but also online through consumer-generated content and in print. The same year, the company also launched shampoo sachets priced at 50 paise each in an effort to increase penetration and usage of the product in rural and poor households Until these launches HUL’s presence in shampoos has largely been restricted to so-called mid- priced shampoos with its Clinic and Sunsilk brands and their variants. The changes seem to have worked for the company. According to research firm AC Nielsen, HUL’s share in the haircare business went up by one percentage point from 47% in the first quarter of 2007 to 48% in the December quarter. In comparison, its nearest rival Procter and Gamble’s (P&G) share fell from 25% to 23.3%. Dove is a classic case of consistency especially in a country like India where people have 24
  • 25. Promotional Strategies of different FMCG brands in India come of age in terms of affluence. The soap’s advertisements are very timely. Sales of the soap have been growing at over 40 per cent annually and the recently launched shampoo variant at 100 per cent. Dove is now almost a Rs 500 crore brand, with soaps accounting for around half of that figure. The rest comes from hair care, a category launched two years ago. W hen we talk about HUL the first name that comes to our mind is Lifebuoy. It is the world’s largest selling soap and offers a stronger health benefit to the entire family. Launched in the year 1895, Lifebuoy, for over a 100 years, has been synonymous with health and value. The brick red soap, with its perfume and popular Lifebuoy jingle have carried the Lifebuoy message of health across the length and breadth of the country, making it the largest selling soap brand in the world. Lifebuoy contributed 30 per cent to the Hindustan Lever detergent business turnover and hadn't undergone a major restructuring and repositioning in 107 years. However, the sales were declining as the consumers were moving away from the carbolic based soaps to beauty soaps - perceived to be superior; with better fragrance and lather; aspirational image. The agency devised a strategy to ensure that it advocated family health rather than personal hygiene. There were large chunks of the users who were in "unreachable areas" - rural markets. Through TV and print campaigns, the agency team focused attention on the family health themes, conducted consumer education exercise using "Germ tests" through multimedia; and established the brand's credentials as an authority in a credible manner. The agency also explored the communication options during important days such as World Health Day. For rural markets, it created the Lifebuoy Swashthya Chetana project wherein 450 teams of health officers tapped 8000 villages in 11 states. Nearly 40 million people in rural areas were covered. The 25
  • 26. Promotional Strategies of different FMCG brands in India brand registered a 30 per cent increase in volumes and the share of contribution to HLL's detergent division turnover increased to 55 per cent. HLL used Mahakumbh mela as an opportunity to change hand-washing and bathing habits in rural India. "The Mahakumbh” at Allahabad is the biggest mela in India and, with its focus on `cleansing' is a good fit for the health Promotion in Melas Lifebuoy for health' message of the brand". Innovative communication tools were used at the mela to communicate the importance of health and hygiene. “The company 14 stalls at various points in the mela grounds. Some hand-carts have also been deployed for increasing access. The numbers of both was increased based on response. ``The activity aims to build awareness in the target audience about hygiene and health through product demonstrations". People in Mela were asked to put there hands below some special camera where the 7 year could see the germs on their hands and were asked to wash their hands with lifebuoy and then see the difference. These type of promotional activities worked in these melas. Swine flu campaign Flu fighter -The flu, caused by the H1N1 virus, has caused several deaths across the country and has spread panic in households. Schools have been shut in cities across India, while hospitals are struggling to cope with the rush of patients. Its largest victims are children who don’t have a strong immune system. Brand consultants and experts feel this will give the brand the much-needed boost. Hindustan Unilever’s latest salvo is its new communication centred around swine flu. The “public interest advertisement” opens with the image of a mother washing her child’s hand. An informative voiceover follows about the importance of washing hands before eating, after sneezing, shaking hands or touching shared surfaces which can help prevent swine flu. A print campaign was also launched. Hindustan Unilever, or HUL, India’s largest consumer goods company by sales, is plugging Lifebuoy soaps and hand washes in newspaper advertisements as products 26
  • 27. Promotional Strategies of different FMCG brands in India “proven to protect from H1N1 type virus”. “Wash away swine flu germs,” goes the tag line on advertisements running across media platforms, including television and print. Lifebuoy sales seem to have won a lift as consumers take precautions to guard against the risk of swine flu, which claimed its first life in India in August when a Pune teenager died after being infected. “The ads are all over the media and it has definitely created an impact. Hindustan Unilever, on its part, plays it down and maintains that it has always kept the health proposition in mind. “The current advertising campaign is an extension of our effort to use mass media to effectively communicate to people at large to increase hygiene awareness to combat this health threat,” says a company spokesperson. Way back in 1985, Lifebuoy’s entry into the Indian market coincided with the outbreak of the plague epidemic. That’s when Lifebuoy became a household name in the country. “Lifebuoy hai jahan, tandroosti hai wahan”, (Where you have lifebuoy, you have good health) ran the long-playing jingle. Some time in 2002, Hindustan Unilever came up with a health and hygiene programme called the Lifebuoy Swasthya Chetna (Lifebuoy Health Awareness) in media-dark villages to spread awareness about the importance of washing hands with soap. Through this initiative, Hindustan Unilever has spread itself across 53,000 villages reaching out to as many as 120 million Indians. The insight here was that regular usage of soap helps reduce illnesses like diarrhoea, respiratory infection, eye infection and so in children. This was underscored by the fact that diarrhoea is a major cause of death in the world today. It is estimated that diarrhoea claims the life of a child every 10 seconds and one-third of these deaths occur in India.A year back, Lifebouy came out in aid of the victims of the Kosi floods in Bihar and Aila cyclone in West Bengal. Therefore, the swine flu initiative was a natural extension for HUL as a brand. Lifebuoy took on the responsibility to raise awareness about swine flu and how it can be prevented as a social cause campaign to reduce the risk of infection. Lifebuoy Swasthya Chetna Campaign The Company has continuously designed innovative promotions to reach the rural markets. Lifebuoy in its rural contact program called “Lifebuoy Swasthya Chetna”, where it spread information on how washing hands can keep diseases away, targeted a 27
  • 28. Promotional Strategies of different FMCG brands in India population of 5 crores in 15000 villages. It also promotes general hygiene in rural areas that are difficult to reach through usual marketing campaigns such as television, press or in-store advertising and promotions. It applied a 2 prong approach. HUL employed Health Development Officers and Health Development Assistants who went to all the villages and educated the community through lectures and community meetings. They returned to the villages after 2 months, offered toys, badges and medals to children who had made it a habit to wash hands regularly (read saved “Lifebuoy” soap wrappers) and a certificate to the children who had won these badges most often. The campaign has three communication tasks: • To establish the presence of germs, even on clean hands, through the use of a 'glow germ demo kit' that has been developed by Unilever for use in Lifebuoy Swasthya Chetna. The simple and powerful tool makes unseen germs visible. • To establish the consequences of these hidden germs, which when ingested, can cause stomach infections and diarrhoea, or be transferred to eyes causing painful eye infections, or infecting wounds. • To establish how current practice is not enough to fight these germs by using the glow germ demo kit to demonstrate that washing with water is not enough, and that it is necessary to wash hands with soap for germ protection. Tools used to communicate the central Swasthya Chetna message are adapted according to the specific audience. Lifebuoy teams visit each village several times, engaging all segments of the community and ensuring the formation of local 'self-help communities' that can sustain the message. School children, being initiators of change, make excellent ambassadors of communication, provided they find it fun and engaging. The element of Lifebuoy Swasthya Chetna that involves children focuses on fun, using stories, games, songs and quizzes. Efforts are made to ensure that the learning does not fade over time. Additionally, these visits also include a meeting with the Panchayat (village elders).Covering 130 million people in 30,000 villages since 2002, the Lifebuoy Swasthya Chetna programme has made its mark as the single largest private hygiene 28
  • 29. Promotional Strategies of different FMCG brands in India education project in the world. The Swasthya Chetna programme will be re-launched in 2009, and will cover even more villages in India as part of the Lifebuoy brand's crusade. Banaye Healthy Hindustan Campaign Lifebuoy conducted a 17 state capital survey among mothers to understand the perception and satisfaction levels of the overall health of their children and the important factors that influence them. The findings of the health report led to 'Banaye Healthy Hindustan' signature campaign which was launched on the occasion of World Health Day. Hundreds of school children between six and twelve years gathered at two of India's historic monuments, India Gate, Delhi and Gateway of India, Mumbai and signed an appeal to health experts and authorities to take care of their health concerns. Lifebuoy also launched a health rally in Chennai, Hyderabad & Jalandhar to generate awareness about the latest threat – swine flu. D ettol celebrated its 75 years of existence in 2008. This highly popular antiseptic brand has come a long way since 1933. After a plethora of extensions and experiments, this brand is still ruling the Indian market as the most preferred antiseptic lotion and also as a premium soap. The brand celebrated its 75 years by reinforcing the germ killing positioning and the tagline " Be 100% sure ". The brand is currently running a campaign highlighting the efficiency and the multi-uses of the product. In marketing theory , it is taught that one of the strategy for a brand which has reached 29
  • 30. Promotional Strategies of different FMCG brands in India the maturity stage of PLC is to find new uses for the product. The Dettol brand is currently in the process of discovering those new uses for the product. When the consumer uses the product for different purposes, the sales naturally increases. The best way to find the new uses for the product is to ask the consumers. Dettol did just that. It ran a series of promotions asking consumers to tell the company , how they used Dettol. The brand asked the consumers to contact them and tell the company on the multiple uses of the product and thus gained lot of insights into the various uses of the brand. The brand later came out with a series of campaign highlighting the various uses of this antiseptic. Dettol now taken the platform of a multi-use antiseptic which can be used during bath, to clean wounds, to sterilize clothes, floor etc. Although homemakers has been using Dettol for all these, the company has now taken these uses as a part of the core product. The brand is trying to break the image of Dettol as an antiseptic which is used for cleaning wounds. Along with this initiative, the brand also reinforced its commitment towards hygiene. The brand has selected hygiene as the core brand value and theme which it will fight for. Unveiling new campaigns and public awareness rallies, FMCG majors such as Dabur, Reckitt Benckiser and Hindustan Unilever Ltd (HUL) are trying their best to communicate what their respective brands can do to prevent the spread of the virus. Apart from Dabur’s campaign, HUL and Reckitt have been enhancing the ‘health-oriented’ equity of their flagship brands such as Dettol and Lifebuoy to target consumers. Meanwhile, soap and hand wash brands such as Lifebuoy and Dettol have also been doing their bit to create new communication about swine flu. For instance, Reckitt’s Dettol brand has decided to support the Global Hygiene Council to conduct doctors’ conferences on swine flu prevention. So far over 1,000 doctors have attended these sessions. The plan is to reach out to doctors in all key cities in the country to raise awareness on prevention measures and readiness. The company has used print, television and online mediums to educate consumers about hygiene and its importance in its brand campaigns. Recently, its Swine Flu campaign guided consumers about the precautions which are required to fight the deadlyinfluenza. Sethi also informs about an H1N1 Flu (Swine) digital campaign of Dettol, which 30
  • 31. Promotional Strategies of different FMCG brands in India positions itself as 'Dettol kills 99.9 % bacteria and Flu viruses' and educates the consumers about the disease. The digital campaign seems to be an endeavour by Reckitt Benckiser to leverage the rising number of searches on Swine Flu, to awareness on how Dettol can help people maintain personal hygiene. As a result The market share of Dettol increased from 6.4 per cent in June 2008 to 8.1 per cent in June 2009, placing it ahead of Wipro's beauty soap Santoor as the country's third-largest soap brand by value. Promotional offer Dettol Fresh range has been introduced in Bar soaps and Liquid handwash. The bar soaps are priced at Rs. 18/- and Rs. 29/- for 70gm and 120gm respectively. The liquid handwash will be available in three sizes - 250ml pump at Rs. 55/-, 185ml pouch at Rs. 30/- and 900ml refill pack at Rs. 135/- The pricing is at par with the existing portfolio of Dettol soaps and liquid handwash. As part of an introductory offer, a discount of Rs. 2/- and Rs. 4/- is being offered on 70gm and 120gm soap bars respectively. This offer was valid during the month of February and March 2009. S antoor, India's third-highest selling soap brand, and South India's second biggest soap brand has been built assiduously with advertising that has presented the Santoor Woman in a 'mistaken identity' situation. The campaign, which is in its 20th year, keeps getting refreshed every two years. Women want their skin to lie about their age. The image managers of Santoor, which has become the largest selling soap brand in South India, has made that the main selling point of their promotion campaign over the years. Previously in tune with the mood of the country Santoor came out with a film that shows the Santoor woman entering a voting booth, to cast her vote, 31
  • 32. Promotional Strategies of different FMCG brands in India only to be stopped for 'age proof'. Again a new interpretation of the mistaken identity theme. Ageless skin campaign Over the years pricing obviously played a crucial part. Santoor was originally launched in 1985 as an ordinary soap with sandalwood and turmeric being its main ingredients. Though Moti and Mysore Sandal soap were the other brands which had sandal as main ingredient, they were available for a premium. Wipro tried to position the soap in the skincare segment at a popular pricing. However, when the company realised that by banking on ingredients may not bring good results for long, it decided to reposition the brand from being ingredient-oriented to benefit-oriented on a platform of ‘younger looking skin’. The theme of ‘ageless skin’, captured first in a TV advertisement 20 years back, has remained constant over the years. And the company intends to keep it that way as long as it’s bringing the right results. “While the theme has remained constant, the Santoor woman has evolved. In the first two years, the Santoor woman was at a wedding ceremony; she was buying bangles; she was buying a book etc. After that she began going to aerobics classes, and then after four-five years we took her to do dress designing. Interestingly Santoor had come out with a cricket film in time for the World Cup. As a result of the campaign women see themselves in every single Santoor soap ad. That may not be an exaggeration as women are surely buying the soap in large numbers. In the first quarter of the last fiscal, Santoor became the largest brand in its category in South India in value market share, though the company has just 7.5 per cent share in the Indian personal care soap market worth around Rs 8,000 crore. In other markets, Santoor has gradually begun to garner market share. In Maharashtra, it is number three in terms of value though the brand is almost neck-and-neck with Lifebuoy in rural Maharashtra, with a market share of 22.7 per cent (Lifebuoy is at 22.9 per cent). 32
  • 33. Promotional Strategies of different FMCG brands in India W hile FMCG (fast moving consumer goods) products usually take off in the urban centres, and then spread through the hub format, Medimix was pitched in the villages first. The only alternative to medimix was Chandrika soap, which had adopted a direct marketing approach. Officials at medimix used to attend numerous village melas and talk to the people. Today, of the three lakh tonnes of soap sold, ayurvedic soap comprises 7 percent, of which medimix has 3 per cent. Medimix is a medicated soap that is 100 per cent handmade is exempt from tax and rural consumers seem to be attracted to the medical qualities of the soap far more than they are to the same qualities in a cosmetic Today when a villager visits a city he asks for Medimix soap by name. No offers, no schemes, no inducements. As Chandrika soap was following the monopoly of direct distribution. Medimix decided to woo the stockiest and distributors and claims there are 25-year-old loyalties here. "From 1969 to 1990 growth was slow 'But when S. Pradeep joined the company as managing director the firm took off in just four years." A firm decisions were taken that Medimix would aggressively market to over 3,000 small hotels all over India, even in small towns. Its a pleasantly surprised to find that even foreign tourists to places such as Pondicherry were impressed by the medicated quality of Medimix. Medimi decided not to compromise on the packaging or appearance or the perfume or colour of the soap to gain entry into five-star hotels. Hotels will never buy at the maximum retail price (MRP), so they supply at cost. 33
  • 34. Promotional Strategies of different FMCG brands in India T he great Indian brand wagon started nearly four decades ago. Great brands sometimes outlast their ambassadors as proven by Lux which celebrated its 75th anniversary in India. Lux campaigns have wooed millions of people over the decades. Popularly known as the beauty soap of film stars, Lux has been an intimate partner of the brightest stars on the silver screen for decades. An ode to their beauty, an announcer of their stardom, advertising campaigns on Lux have featured film stars across the nation, promising their beauty and complexion to ordinary women. With top movie stars – from Madhubala to Madhuri, from Babita to Karisma and Kareena having endorsed the goodness of Lux over generations, it was natural that the brand has built equity as the best beauty soap in India. From the beginning Lux, by using a leading film star of the time, has fulfilled the consumers’ aspirations of using beauty soaps via the rationale ‘if it’s good enough for a film star, it’s good for me. This later moved into a transformation role of having a bath with Lux, which transports the user into a fantasy world of icons, film stars and fairy lands. The first ambassador, Leela Chitnis featured in a Lux advertisement which flagged off the Lux wagon. She gave way to a galaxy of stars which includes Madhubala, Nargis, Meena Kumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi, Aishwarya Rai and Kareena Kapoor. The last frontier for most actors aspiring to stardom is becoming a Lux ambassador. The brand has outlasted many soaps. From the beginning, Lux became a household name across the country 34
  • 35. Promotional Strategies of different FMCG brands in India Change in communication strategy However, the communication was slowly seen to be losing relevance, as consumers were beginning to question if the film star actually used the brand. In addition to this, several competitive beauty soap brands had begun advertising using similar methods of communication. In this context, the global brand team for Lux developed a new communication strategy. This strategy – bring out the star in you – for the first time moved the brand away from the long-running film star route. The film star still features in the new communication but not as her gorgeous self but rather as an alter ego/projection of the protagonist (a regular girl), for a few seconds of the entire ad. Thus, for the first time the film star was used as a communication device and not as the main feature of the ad. The move away from the film star and her fantasy world to a regular Lux user, with the focus on the protagonist’s star quality, is a change from the norms set by Lux advertising in the past. With the new communication strategy, the film star is used purely as a communication device to portray star quality in every Lux user. This can be significantly seen in the latest TV commercial of Lux Crystal Shine where Priyanka Chopra is portrayed as a normal woman. This idea – bring out the star in you – puts the consumer at the heart of the brands’ promise. This promise goes beyond the functional deliverables of soap, beyond bathing and the bathroom to the world outside. It’s a world where with Lux on her side, an ordinary woman can impact her world with her own star quality. This is a successful attempt to bring the brand closer to its users and to give it a more youthful and contemporary image. 35
  • 36. Promotional Strategies of different FMCG brands in India Prominent Sales Promotion Schemes Used By LUX Lux presented 30 gm gold each to the first three winners of the Lux Gold Star offer from Delhi. According to the promotional offer that Lux unveiled in October 2000, a consumer finding a 22-carat gold coin in his or her soap bar got an opportunity to win an additional 30 gm gold. The first 10 callers every week got a 30 gm gold each. The offer could be availed only on 100 gm and 150 gm packs of Lux soap. Lux Star Bano, Aish Karo contest: All one needed to do was buy a special promotional pack of Lux soap. The pack comes with a special scratch card. The 50 lucky winners and their spouses were flown down to Mumbai to live a day like Aishwarya Rai would. They could also be given gift vouchers worth Rs 50,000 from Shoppers' Stop along with an exclusively designed Neeta Lulla sari and a beauty makeover by Michelle Tung, Aishwarya's preferred designer and stylist. The pièce de résistance was a dinner date with Aishwarya Rai herself. Lux celebrated 75 years of stardom with the Har Star Lucky Star activity. All wrappers of Lux had a star printed inside them. If the consumer found written inside the star, any number from “1” to “5”, she would get an equivalent discount (in rupees) on her purchase from her shopkeeper. If the consumer found “75 years” written inside the star, she will get a year’s supply of Lux free. LUX PR Activities Press relations: Lux has been maintaining constant communicating with its customers and potential customers, of the various developments taking place in the brand by using press relations. Events: Lux celebrated 75 years of existence in a grand way by unveiling Shahrukh Khan as their 36
  • 37. Promotional Strategies of different FMCG brands in India latest brand ambassador. Kareena Kapoor, Juhi Chawla, Sridevi and Hema Malini graced the event and made it special. All the stars have endorsed Lux in the past. The event was held at the grand Intercontinental in Mumbai Limited edition: Coming up with limited edition of the brand is also a way of attracting attention towards the brand. It creates a buzz and a feeling of urgency to try out the product and helps in promotion of the brand. This strategy was also implemented by Lux by bringing out limited editions like Chocolate Seduction, Aromatic Glow, Festive Glow and Haute Pink O ver the first three decades of its existence, the brand took the platform of protection from body odour. But the markets were gradually changing. In 1986, in an attempt to modernise the image, 'New Cinthol' soap was launched with a new-look packaging, shape and advertising, using celebrities like Vinod Khanna and Imran Khan. The communication campaigns developed strong, confident and active associations with Cinthol- attributes that went on to become an essential part of the brand imagery. In 1989, in an attempt to capture a share of the lime soap market, Cinthol Lime was launched. The attempt to capture a segment of this developing market was a resounding success: it grabbed 8% market share in six months. In 1992, Cinthol Cologne was launched to extend the brand franchise into a modern and new fragrance. cinthol-vinod-khanna cinthol-imran-add By 1993, Godrej realised that it had to re-jig the brands to keep pace with the changing environment. The three variants that had been launched post 1986 were brought under the Cinthol International umbrella – Cinthol International Spice, Cinthol International Lime and Cinthol International Cologne. 37
  • 38. Promotional Strategies of different FMCG brands in India A complete positioning overhaul was undertaken between 1993 and 1995. Shah Rukh Khan became the brand's new icon. His panache matched the brand's new platform: revitalising and re-energising. With the launch of Cinthol Fresh in 1995, the brand was extended into the popular segment as the first popular segment lime soap. It was a runaway success. It was redefined as a family soap with the famous 'Tan taaza, man taaza' campaign in 2000. Currently, Godrej plans a complete makeover of its flagship soap brand Cinthol and has hired Bollywood actor Hrithik Roshan as a pitchman. The brand, which was launched in 1952 as the first deodorant soap in the country, has been through several changes since then. It was initially positioned as a male-centric product but later it was repositiioned as family soap but now, the company plans to pitch it as a youth-centric brand, along with launching new products under the same brand name. Promotion in rural market Most fast moving consumer goods (FMCG) companies have a two-pronged strategy to tap rural markets. It comprises launching nano packs and scaling up rural distribution. Godrej Consumer Products Ltd (GCPL) is going a step further by adding a regional advertising component. The company advertises on Doordarshan, local TV and radio channels, the local press and outdoor media. For its top-performing brands, it spends most of the cut-out budget on regional advertising only. "For Godrej No. 1 soap, 100 per cent spends go in regional advertising. For Cinthol, it is more than 50 per centThe strategy has borne fruit. Godrej No 1 is now the number one soaps player in the north. Its annual sales exceed Rs 500 crore and it is the country_s third largest soap brand. Cinthol_s market share has increased from 2.5 per cent to 2.8, while Cinthol deodorant has grown by 50 per cent in the second quarter. For Expert, the company is running a campaign wherein it brands local barber shops and salons under the _Expert_ brand. Under the programme, its sales team introduces its products to rural folks through barbers, engaging the latter to co-brand their shops or salons as Expert salons. The company has engaged 50,000 barber shops and salons under this programme. 38
  • 39. Promotional Strategies of different FMCG brands in India Price points are also important. Godrej has also been rolling out nano packs priced between Rs 5 and Rs 10. Besides Godrej No. 1 (Rs 5), Cinthol (Rs 6) and Expert (Rs 10), a couple of months earlier, it introduced Nupur (mehndi) in Rs 5 and Rs 10 packs. Washing Powders E ver heard of a detergent that praises its foe? We have one which says _Daag achhe hain_ very confidently. For any other brand, it would have been difficult to convince the customers about the product with such a paradoxical statement, but for Surf Excel, which can easily be called as one of the most powerful detergent brands of India, it seemed a cake walk. What_s more, the brand not only focuses on its generic space of a detergent but also on making a social difference in the lives of its consumers. Surf Excel_s social awareness campaigns like _Do bucket paani ab rozana hai bachana_ and the scholarship campaign for unfortunate students too endear the brand to the morally responsive Indian consumer. Right from _Lalitaji_, representative of the true-blue cost-conscious Indian woman, till the inspiring storyboards of today, Surf Excel has done it all and in style. 39
  • 40. Promotional Strategies of different FMCG brands in India Innovation truly distinguishes leaders from wannabes, and as detergent adverts go, Surf Excel has proved to be the last word – both in terms of product offering and advertising communiqué.. The era of Lalita Ji ensured that Surf represented the woman of that epoch, which in turn managed to instill confidence among consumers. Surf transformed itself into Surf Excel in 1996 with its campaign, ‘Kadi Safai, Magar Pyaar Se’, clearly differentiating itself from the herd by offering a supplementary benefit of care. While competitors such as Rin, Ariel, Tide and Henko were positioning themselves as detergents that would aid in the removal of dirt by virtue of technological expertise, Surf Excel chose to walk on an entirely different path. And now, with its plucky glorification of dirt, it’s written the new clean-up mantra, ‘Daag Achche Hain.’ In sync with this credo, the latest commercial of Surf Excel does not rely on thematic communication like the previous TVCs. The concept was that while kids get stuck on one thing, stains get stuck in 10 different places.” Surf owns the distinction of being the first ever detergent brand in India to have begun advertising on television. The brand has optimally utilised the medium of TV to bring across the intrinsic worth of ‘bucket wash.’ From placid and peaceful to feisty and quick-witted, Surf Excel today practises a refreshing modus operandi to speak to its customer. The brand’s advertising gained a humongous amount of exposure by flagging off a host of in-store programmes and road shows that entrenched it in the good books of the consumer. Being an overseas brand, Surf has excelled in Indian markets for decades together – by no means a small achievement – and marketing gurus admire the brand for its sheer tenacity. 40
  • 41. Promotional Strategies of different FMCG brands in India Distinctions in promotion of Surf • Surf was the first brand of detergent that was advertised on TV. It is advertised on more than 300 channels across the globe . • Introduced the concept of bucket wash to housewives who up till now used to washing clothes with laundry soap bars. • Brand to set up a one-stop shop - called Care line - for people seeking solutions to their varied laundry problems. • Surf Excel underwent various changes in its Brand Communication; from ‘Lalitaji' to 'dhoondte reh jaaoge' to 'jaise bhi daag ho, surf excel hai na', and is today communicated on the platform of 'Dhaag achcha hai'. • HLL is now reworking the Surf Excel strategy by moving away from positioning the brand on functional benefits, to building an emotional connect. • Surf Excel is currently running two campaigns riding on the popularity of the "Daag Ache Hain" ( Dirt is good) campaign. • The new campaign too strikes a chord with the consumers. Power of a "Big Idea”. • The second campaign takes a cue from the World cup. The ad features a group of kids preparing for World Cup 2015. • The company has re-packaged the product using brick packaging which is a first among detergents in the country. Radio city campaign Surf Excel, a leading detergent brand from Hindustan Unilever Limited, has come together with India’s leading Radio Network, Radio City 91.1 Fm to celebrate International Peace in Mumbai, where Children across the city got dirty for a noble cause and spread the message of peace in a unique & colorful way. Children across Mumbai are invited to participate in this activity through an on air campaign on Radio City. Across schools, kids will leave colorful hand impressions on multiple canvases. Surf Excel will then showcase these canvasses on hoardings and in malls across the City, in a bold statement for World Peace as defined through a Child’s eyes. 41
  • 42. Promotional Strategies of different FMCG brands in India W hen we think of strong detergent in general and low cost in particular, Nirma is the first brand which comes to our minds. Everyone remembers not just these lines but also the tune! “Washing powder Nirma, Washing powder Nirma; Doodh si safedi Nirma se aaye, rangeen kapda bhi khil-khil jaye; Rekha, Jaya, Meena aur Sushma, Sabki pasand Nirma” The kind of impact that Nirma’s simple “Dancing Girl” advertisement managed to have on prospective buyers was phenomenal. It perhaps was the most famous audio-visual of its times. And it remained etched in the minds of people for a very long time. Advertisements of Nirma focus on the “performance” and “cost effective” features of the washing powder which has made it popular in most Indian households, who have been using it for many years now. This product is targeted for middle class and lower middle class population of India. Washing Powders have undergone a number of changes in terms of composition, advertising etc ever since they were first introduced. And consumer preferences have also changed accordingly with people more comfortable with more sophisticated brands. Yet, Nirma with its distinct yellow color (later which became blue) does crop up somewhere in the mind space of consumers, even nonusers. The detergent brand that started out of Karsanbhai Patel's 100 square feet workshop in 1969 continues to be popular in middle-class homes of the country. Recently Nirma launched the 'underwater' commercial, which showed dancers moving with flowing fabric - a metaphor for clothes being washed in a bucket. An important point in the ad was that it did not use the iconic Nirma jingle. This was a first since 1982, when the first Nirma ad was made. Now, Nirma wanted its communication to get back to talking about the dirt tackling properties of the detergent, 42
  • 43. Promotional Strategies of different FMCG brands in India as well as use the legendary 'Washing powder Nirma' jingle The brand was firm that it did not want to carry on with the montage film route; it needed a different take on dirt removal. The ad opens on the shot of a vehicle rolling into a puddle. A large amount of slush is about to fall onto a woman who is passing by. But just as the slush is ready to land on the woman, she sternly turns towards the puddle. Pointing her index finger at the slush, she says, "Nirma. Washing powder." The slush pauses, surprised at the woman's words. She continues with the words of the jingle, in a firm tone and without any music, and the slush begins to feel threatened. Finally, she walks away untouched by the slush, which plops back into the puddle, much to the surprise of the onlookers. Without any change to the product itself, the TVC conveys the fact that dirt had better stay away from Nirma. Though Dhyani was skeptical about whether the big bosses at Nirma would like the firmness of tone in the jingle, he was pleasantly surprised when they were glad with the strict stand. Nirma's success is synonymous with its advertising and marketing strategy. When Karsanbhai Patel started selling his detergent powder, he decided to call it Nirma, derived from the name of his daughter Nirupama. In the early years, the Nirma packet featured a lady washing a garment. Later, however, the design was changed and an image of his daughter was featured on the pack. The white dancing girl, featured in Nirma's television advertising, is perhaps the most enduring image of Nirma. Though Ms. Patel passed away in a car accident, she continues to live on in the corporate logo and the best selling brands of the company. Nirma's advertising has always focused on the value-for-money angle. Its simple and catchy jingle - Dudh si safedi Nirma se aye, rangin kapda bhi khil khil jaye - has continued to echo in the drawing rooms of middle-class Indian homes through the decades. While the jingle stresses on the product, it also salutes the savvy and budget- conscious Indian housewife. The jingle, which was first aired on radio in 1975, was broadcast on television in 1982. It is one of the longest running jingles and the spot has seen very few changes since the time it was first aired. 43
  • 44. Promotional Strategies of different FMCG brands in India Nirma's promotion strategy, too, has many firsts to its credit. The company pioneered product sponsorship through the electronic media. Besides, the company has developed a unique advertising strategy - new products are launched with no advertising support. Once the distribution glitches are sorted out and the product reaches the shelves of retailers, the company begins to advertise it. The umbrella branding strategy helps to give new products instant recall without increasing the advertising expense. Nirma used radio, posters, banners and mobile vans among others as better media options. It was also one of the first major advertisers on the National Network, a fact borne by its jingle (Nirma Detergent tikia, iske jhaag ne jaadu kar diya), which still generates instant recall. When you hear the all too-familiar tune Washing Powder Nirma, you instantly know what it is talking about. The title 'Nirma Girl' going round and round on her feet and her white dress rising fluff too made for a strong mnemonic for the brand. This stood up to Surf's Lalitaji's "samajhdari." Segment – Cosmetics Promotional tools over the years • TV Campaign • Fairness Meter • Fair & Lovely Scholarship Programme 2007 on Reliance Mobile or R World (Aug 14 – Sep 17, 45,000 Response • Getting the Dream Man there were a series of films made on getting the man of one’s dreams. In addition, Fair & Lovely also spoke to the married women about keeping the spark in the marriage alive. • The Airhostess ad. A young dark skinned colored girl’s father laments he has no son to provide for him, as his daughter salary was not high enough-the suggestion being that she could not get better job or get married because of her dark skin. 44
  • 45. Promotional Strategies of different FMCG brands in India • The girl then uses the cream becomes fairer, and gets better paid job as an air hostess- and makes her father happy. • Theater Actress Advertisement . Fair and lovely scholarship The Fair & Lovely scholarships are awarded annually to deserving young girls who intend to pursue higher education in India leading to Graduation, Post-Graduation and PhD. Awarded by the Fair & Lovely Foundation, the Rs 100,000 )US $ 2500) scholarship is meant for women ‘with an aptitude and ambition to achieve their goals’. To provide visibility and synergy to the Fair & Lovely Campaign - Reliance Communications’ R World platform was thought to be the best medium for advertising the Scholarship programme for women as it gives a high reach in the desired target group The Foundation specifically targets women who are from the low-income groups in the rural and urban India. This being a CSR activity the objective was to enable lead generation of potential women candidates with a cost effective campaign as Hindustan Unilever Ltd did not include the traditional media – TV & Print in its plan. To break free from the clutter of the traditional medium and be the first brand under the Hindustan Unliver Limited umbrella to explore the mobile platform which has never been used by the company in India before. Induce call for action by enticing the user to fill in personal important details after sharing the Scholarship and Fair & Lovely Foundation information which then could be followed upon to shortlist the applications received. Banner Advertising: Fair & Lovely Scholarship clickable banner on top of the screen on the Main Menu of the Reliance Mobile World in WAP handsets. The Banner was conceived to build rapid awareness about the Fair & Lovely Foundation and scholarship program. Microsite: The banner was also linked to the microsite which captured the essence of the program in brief and allowed the interested users to apply then and there. Millions of Impressions )more than 2 million impressions) have been recorded on the Fair & Lovely Foundation Banner Ad 45
  • 46. Promotional Strategies of different FMCG brands in India The Banners were rotated / refreshed at regular intervals to maintain saliency & ensure that it does not become a blind spot. Fair & Lovely Scholarship Zone: Lead Generation Zone for the fair & Lovely Scholarships Aspiring women could apply for this scholarship through Reliance Mobile Phones’ R World for the first time. Short-listed applicants were to be contacted by Fair & Lovely Foundation Potential students can send their entries through Reliance Mobile World on R World>Hot N New>>Schlrshp Zn Circles targeted to tap maximum number of applications – UP, AP, Maharashtra, Madhya Pradesh &Chhatisgarh, Tamil Nadu, West Bengal and Karnataka. Candidates could fill-in important information such as name, age, area of interest to apply through the Reliance Mobile World and apply instantaneously for the scholarship. The zone also has detailed information about the Scholarship program and picture of one of the previous scholarship winner – Amrita Singh which will inspire others to apply More than 30,000 students have applied on the Reliance Mobile World till date, filling in all 4 inputs required for a successful entry SMS Blast: SMS has been sent to all subscribers in the select circles for driving traffic to the Scholarship Zone, encouraging students to apply. IVR: The scholarship Program has also been promoted through the IVR in select circles. The message relayed gave information about the program and directed the subscribers to apply through the Reliance Mobile World. Short Code: Subscribers can also apply by responding through the Short Code 51234 to Reliance Communications. Reliance Mobile World Website: Campaign details have also been uploaded on the Reliance Mobile World website 46
  • 47. Promotional Strategies of different FMCG brands in India The Campaign Results Promotions in Rural market When Hindustan Lever, the fast-moving consumer goods numero uno, embarked on an exercise in 2002 to promote its Fair & Lovely brand in the rural markets, the brief was simple and clear: the brand was being looked at by rural consumers more as a one-time make-up product rather than as a process product and this mis-positioning had to be corrected right away. The challenge was to convey to the consumers that this product had to be used regularly for a visible difference in complexion to happen. Lever’s solution was an out-of-the-box one: The company created a brand ambassador— an educated woman in her mid-twenties who was seen as a trendsetter—to spread its gospel among the village’s women folk. The person was christened the ‘Fair & Lovely Didi’, a person who would educate women to become sarva gun sampan (i.e., replete with fine qualities) by giving them cookery tips, tips on how to do fine embroidery and so on. By 2004, the initiative had expanded in scope to cover 11,000 villages. The strategy bore fruit: Within two months of its operation in an area, more than 80% of the consumers there were viewing the brand as a process product. Encouraged, HLL applied this tactic to its other brands as well. 47
  • 48. Promotional Strategies of different FMCG brands in India While connecting with the rural masses has always been an integral part of Lever’s marketing strategy, striking an emotional chord with rural India has now become the mantra for success of every big company Promotion: Advertisements on Television In serial branding with product placement in DD serials Relationship building: Direct Contact Programs with villagers – sales team to visit from time to time to increase awareness, induce trial and repurchase Find and target opinion leaders of the village to increase advocacy for our product POP’s – danglers, shop branding, bus shelters, buntings Target beauty parlors – to stock and advocate our product Presence of stalls during Bazaar – offering makeovers and sampling ITC BISCUITS Biscuits and tea in the morning were a routine. So were the key market players and their favorite products. The two major players Britannia and Parle were busy biting of chunks of the national market among themselves, with a host of smaller brands in various regions. While the business was still very competitive, there wasn’t anything groundbreaking. In 2003, with ITC foraying into the segment, a lot of that changed. At that time, Britannia and Parle held, between them over 82 per cent of the market in value terms. ITC decided to enter the foods segment because it’s a Rs 550,000 crore market in India. But only 6 per cent of this is branded and packaged 48
  • 49. Promotional Strategies of different FMCG brands in India Promotions In August 2003, a month after its launch, the company undertook a major sampling exercise topromote the product. For two years then, the brand did all the usual rounds — riding behind buses, blocking television spots, booking that corner space in your favorite newspaper and so on. In April 2005, Sunfeast launched its major campaign. It signed on Hindi film actor, Shah Rukh Khan as its brand ambassador. In the same year, as the official sponsor of the WTA tennis championship — titled the Sunfeast Open — the company had teenage sensations Sania Mirza and Mahesh Bhupathi campaigning for it. But that’s not all. For promotions in southern states, Sunfeast has signed Tamil super star Surya as a brand ambassador. Cornetto Ice Cream Music album campaign Kwality Wall's Cornetto launched the music album 'Ho Jaane De' in collaboration with Universal Music to promote its two new flavours – Black Forest Flirt and Strawberry Tease Cake. The music album features talented singer Raghav Sachar and the multi-faceted Shruti Hassan. Besides the album, a unique campaign 'Dedicate and Win' was also rolled out. This campaign promotes the expression of love by facilitating people to dedicate songs to loved ones over the mobile or internet. Axe Deodrant Call Me' campaign The study about phone conversations conducted on 750 girls by Axe research labs across six cities in India showed that getting a girls phone number is a first step forward in the mating game. This insight drove the new Axe “Call me” campaign idea that shows girls giving out their phone numbers uncontrollably to guys who are wearing Axe. Besides the TVCs a full 360 media plan was used to drive consumers to call the Axe number. About 45 lakh calls were received on the Axe number and 10 lakh wake up alarms were registered. 49