The document provides an executive summary of a project on marketing tactics for launching new FMCG products. It discusses the importance of understanding topics in depth through industrial orientation projects. The summary focuses on marketing strategies and tactics being important for any business success. It also discusses conducting primary research through consumer surveys and providing conclusions, findings and suggestions based on secondary research and primary data analysis.

1. EXECUTIVE SUMMARY
As a part of our study curriculum it is necessary to conduct a industrial orientation project. It
provides us an opportunity to understand the particular topic in depth and which leads to through
to that topic. My topic for project is titled as “Role of Marketing Tactics for Launch of New
Product in FMCG Sector’s” on which emphasis given to the marketing tactics and its effect for
launch of new FMCG goods.
To start I’ll give brief information regarding industry and company profile in which I
have done my winter internship then moving next I’ll brief about FMCG sector than after I’ll
explain what is topic is all about. Marketing strategies and tactics is one of the pillars of any
business.
As we know no business can succeed without use the marketing tactics. There are certain
theory narrated as operant conditioning and projective theory. Based on secondary source
certain theoretical aspects are also included as a part of study.
Then after concentration is given to the primary research. It include the analysis and
results of survey which was focuses on consumer’s behavior
At last conclusion of report, findings and suggestion was given based on study of
secondary source as well as primary research.
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2. INDUSTRY PROFILE
Introduction
The Indian advertising industry has evolved from being a small-scaled business to a full-fledged
industry. The advertising industry is projected to be the second fastest growing advertising
market in Asia after China.
The Indian government has given tremendous support to the advertising and marketing industry.
Advertising expenditure is likely to increase in the financial sector, driven by Reserve Bank of
India (RBI) policies which could result in a more favorable business environment. Also,
proposed licenses’ for new banks and better market sentiments render the advertising and
marketing industry in India a fertile space.
Market size
India’s advertising industry is expected to grow at a rate of 16.8 per cent! year-on-year to Rs
51,365 crore (US$ 7.54 billion) in 2016, buoyed by positive industry sentiment and a strong
GDP growth of 7 per cent and above.
Print contributes a significant portion to the total advertising revenue, accounting for almost 41.2
per cent, whereas TV contributes 38.2 per cent, and digital contributes 11 per cent of the total
revenue. Outdoor, Radio and Cinema make up the balance 10 per cent.
The online advertising market in India is expected to touch Rs 3,575 crore (US$ 538.09 million)
in 2015 from Rs 2,750 crore (US$ 413.92 million) in 2014. Of the current Rs 2,750 crore (US$
538.09 million) digital advertisement market, search and display contribute the most - search
advertisements constitute 38 per cent of total advertisement spends followed by display
advertisement at 29 per cent, as per the study.
The Internet's share in total advertising revenue is anticipated to grow twofold from eight per
cent in 2013 to 16 per cent in 2018. Online advertising, which was estimated at Rs 2,900 crore
(US$ 436.50 million) in 2013, could jump threefold to Rs 10,000 crore (US$ 1.51 billion) in five
years, increasing at a compound annual rate of 28 per cent.
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3. It is interesting to note that Indians paid Rs 25,200 crore (US$ 3.79 billion) to access the Internet
in 2013, a figure greater than the Rs 22,300 crore (US$ 3.36 billion) that print medium garnered
in subscription and advertising.
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4. Recent Developments:
 Indian Railways has appointed Ernst & Young (EY) as a consultant to discover its
advertising potential, which is in line with the Railway Budget proposal of increasing
non-fare earnings to over Rs 5,000 crore (US$ 733.6 million) in five years.
 MoMark Services, a mobile based customer engagement platform for small and medium
businesses, has raised US$ 600,000 from YourNest Angel Fund and LNB Group, to scale
up its product offerings and talent acquisition.
 Tata Motors has appointed renowned football player Lionel Messi as the global brand
ambassador for Tata cars and utility vehicles globally, with an aim to tap the youth market
and expand visibility and presence of Tata Motors in newer markets.
 Advertising agency J Walter Thompson has launched its global digital agency network
'Mirum' in India which will provide services such as strategy and consulting services,
campaigns and content, experience and platforms, analytics and innovation and product
development, with the target to increase non-traditional media revenues to 40-45 per cent
from 35 per cent currently.
 DDB Mudra Group has planned to launch ‘Track DDB’, a brand that addresses the data-
led world of marketing communications, which will provide services like creative, data
and digital analytics, database marketing, CRM, digital and mobile marketing in India.
 All India Radio (AIR) has appointed ‘releaseMyAd’ as a virtual agency to let advertisers
book ads for all of AIR’s station online.
 Google is all set to help India implement Prime Minister Mr Narendra Modi's "Digital
India" initiative, and the government has a well laid out plan to realise it, said Google's
Chief Internet Evangelist Mr Vinton G. Cerf. Digital India is Rs 1.13 trillion (US$ 16.58
billion) government initiative that seeks to transform the country into a connected
economy, attract investment in electronics manufacturing, and create millions of jobs and
support trade.
 As companies look for better productivity and increasing efficiencies in a tough market
environment, market research firm Nielsen has launched its first consumer neuroscience
lab in India at its Mumbai headquarters. The neuroscience lab will augment the
company's research capabilities in packaging and research, improving their effectiveness.
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5.  MPS North America LLC, the US subsidiary of Bengaluru-based publishing solutions
provider MPS Ltd, has acquired Electronic Publishing Services Inc. (EPS), a New York-
based firm with interests in content creation, art rendering, design and production. The
deal will allow MPS to strengthen its foothold in North America.
 Jaipur-based Girnar Software Private Limited, which owns and operates the website
CarDekho.com, announced that it has raised US$ 50 million in its second round of
funding. The funding was led by Hillhouse Capital with participation from Tybourne
Capital and Sequoia Capital.
 ZipDial has become the first Indian technology product startup to be bought by Twitter in
what is the third such deal led by a global corporation following the acquisitions by
Facebook and Yahoo. The ZipDial deal is expected to cost Twitter US$ 34-35 million.
This feature is expected to help Twitter reach people who will come online for the first
time in countries such as Brazil, India and Indonesia, mostly using a mobile device.
 Telecom major Axiata's subsidiary, Axiata Digital Advertising (ADA) has formed a joint
venture with US-based advertising tech firm Adknowledge to get into the US$ 47 billion
digital ad market in the Asia Pacific region and has identified India as a 'key' market.
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6. Government Initiatives
The Governments of India and Canada have signed an audio-visual co-production deal which
facilitates producers from both countries to harness their collective artistic, technical, financial
and marketing resources, and encourage exchange of culture and art between the two countries.
The agreement is also likely to lead to better promotion of Indian locales for shooting films. "The
agreement will also lead to the transparent funding of film production and boost export of Indian
films into the Canadian market," as per the agreement.
India and Poland are seeking to enhance cooperation in the digitisation and restoration of film
archives. This was decided in a meeting between Mr Bimal Julka, Secretary of Information and
Broadcasting, India, and a delegation from Poland led by Ms Malgorzata Omilanowska,
Secretary of State. The two countries will form a joint working group that will help improve
cooperation in fields such as student exchange programmes, animation, films and digitisation,
among others. Mr Rajyavardhan Singh Rathore, Minister of State for Information &
Broadcasting, has announced that Indian government has planned to increase advertising spend
on the digital platform which will help increases the government’s presence in digital media.
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7. Road Ahead
The advertising and marketing sector in India is expected to enjoy a good run. E-commerce
companies are expected to dominate marketing trends in 2015. Growth is expected in retail
advertisement, on the back of factors such as several players entering the food and beverages
segment, e-commerce gaining more popularity in the country, and domestic companies testing
out the waters. The rural region is a potentially profitable target. For instance, in the automobiles
sector, the focus of two-wheelers on rural areas could mean more launches and more advertising
spends. The telecom sector could see growth as well, driven by better smartphone penetration
and service providers cutting down on prices.
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8. COMPANY PROFILE
INTRODUCTION OF COMPANY
Beta Testing are veteran in the through line activities (Events, Promotion, Exhibitions, and
Advertising) operating in Mumbai. As an upbeat, dynamic and well- network organization, Beta
Testing assists in identifying your communication requirements, devising strategies, crafting
perceptive ideas along with basket full of personalized services. Our proficiency ranges from
sectors like Travel & Hospitality, FMCG, Information Technology, Financial Services and
Education.
Beta Testing is Specializing in creating events across brands of different nature and the one thing
that makes this possible is the ability to identify the core objective behind the entire exercise.
Beta Testing also understands the need to make available multiple options through brainstorming
so as to create a pool of tangible ideas that can be further developed and successfully
implemented.
How Beta Testing Team Believes in Events works:
Taking a detailed brief
Ideation based on final objective
Concept development
Identification of tasks in detail
Drawing detailed checklist by each dept.
Project Co-ordination
Project Execution
Beta Testing are a full-fledged Through The Line Agency (Events, Promotions, Exhibitions,
Advertising) operating in Mumbai. As a pro-active, dynamic and well-networked organization,
Beta Testing helps in identifying your communication needs, formulating strategies, designing
creative insightful ideas, packaged with the highest level of personalized services. Our expertise
ranges from sectors like Travel & Hospitality, FMCG, Information Technology, Financial
Services, Education..
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9. Beta Testing Specializing in creating events across brands of different nature and the one thing
that makes this possible is the ability to identify the core objective behind the entire exercise.
Beta Testing also understands the need to make available multiple options through brainstorming
so as to create a pool of tangible ideas that can be further developed and successfully
implemented.
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10. VISION & TAGLINES
Vision
Accelerating future with cogent strategies! Creating niche for brands and fortifying their position
strategically in the competitive environment with effective communication.
Taglines
 Your strength in India is our responsibility.
 Accelerate your path to success with beta.
 Expand with innovative ideas.
 Your own dedicated team to promote your brand.
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11. SERVICES OF BETA TESTING
 Event
1.Corporate Events
2.Product Launch
3.Theme Events
4.Dealer & Vendor Meets
5.Sales Conferences
6.Employee Parties
7.Award Ceremonies
8.Exhibition
 Ground Activation :
1. Promotion Management
2. Product Road show Design & Execution
3. Venue, Vendor and Talent Database
4.
Institutional Tie-ups [Schools, Colleges, Clubs, Restaurants,
Popular Hangouts, Night-clubs]
5. Product Promotion
6. In Shop Promotion
7. Road Show
8. Merchandising
9. Exhibition Stall Designing
 Advertising :
1. Strategy Planning
2. Advertising Campaign
3. Corporate Identity
4. Media Operations
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12.  Outdoor Media :
1. Hoardings
2. Banners
3. Kiosks
4. Bus Shelters
5. Bus Panels
6. Railway Transfer
7. Glow Signs
 IT Services :
1. Web Development
2. .Net Application Development
3. Web Application Maintenance
4. E-commerce Development
5. Search Engine Optimization
6. Web Hosting
7. Print Design Services
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13. INTRODUCTION OF PROJECT
FMCG Concept and Definition
The term FMCG (Fast Moving Consumer Goods), although popular and frequently used
does not have a standard definition and its generally used in India to refer to products of every
day use. Conceptually, however, the term refers to relatively fast moving items that are used
directly by the consumer. Thus, a significant gap exists between the general use and the
conceptual meaning of the term FMCG.
Further, difficulties crop up when attempts a definition for FMCG. The problem arises
because the concept has a retail orientation and distinguishes between consumer products on the
basis of how quickly they move at the retailer’s shelves. The moot question therefore, is what
industry turnaround threshold should be for the item to qualify as an FMCG. Should be turn
around happen daily weekly, or monthly.
One of the factors on which the turnaround depends is the purchase cycle. However, the
purchase cycle for the same product tend to vary across population segments. Many low-income
household are forced to buy certain products more frequently because of lack of liquidity and
storage space while relatively high-income households buy the same products more infrequently.
Similarly, the purchase cycle also tends to vary because of cultural factors. Most Indians,
typically, prefer fresh food articles and therefore to buy relatively small quantities more
frequently. This is in sharp contrast with what happens in most western countries, where the
practice of buying and socking foods for relatively quantities more frequently. This is in sharp
contrast with what happens in most western countries, where the practice of buying and socking
foods for relatively longer period is more prevalent. Thus, should the inventory turnaround
threshold be universal, or should it allow for income, cultural and behavioral nuances.
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14. CHARACTERISTICS OF FMCG PRODUCTS:
 Individual items are of small value. But all FMCG products put together account for a
significant part of the consumer budget.
 The consumer keeps limited inventory of these products and prefers to purchase them
frequently, as and when required. Many of these products are perishable.
 The consumer spends little time on the purchase decision. Rarely does he/she look for
technical specifications (in contrast to industrial goods). Brand loyalties or
recommendations of reliable retailer/dealer drive purchase decision
 Trial of new product i.e. brand switching is oft induced by heavy advertisement,
recommendation of the retailer or neighbors/friends.
 These products cater to necessities, comforts as well as luxuries. They meet the demands
of the entire cross section of population. Price and income elasticity of demand varies
across products and consumers.
Tactical Marketing
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15. Once you have goals, including specific strategies for achieving your goals, determine how you
will implement your strategies. If you want to increase your revenues, one tactic might be to
raise your prices in conjunction with rebranding a product or service as upscale. If you want to
increase market share among health-conscious consumers, you might start sponsoring sporting
events or advertising in health and fitness magazines.
Know Your Customers
To create tactics to support your marketing strategies, create detailed profiles of your customers.
Learn the age, gender, marital status, geographic location, educational level, parental status and
other information about your current customers, as well as customers you want to attract.
Without this information, it will be difficult to create strategies and even more difficult to
tactically implement them. Knowing your customer demographics will help you choose the right
marketing channels, such as advertising media, to reach your customers.
Marketing Channels
Use a variety of marketing channels to implement tactics. Selecting the right advertising media,
public relations, cause marketing, sports marketing, public relations and distribution channels are
critical to creating effective tactics. For example, if your strategy to increase revenue is to
position and price your product as upscale, but you sell the product in discount stores, your tactic
will not effectively support your strategy. If one of your strategies is to increase sales among
single women, sponsoring women’s 5K runs and tennis leagues might be an effective tactic.
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16. DIFFERENCES BETWEEN STRATEGIC MARKETING PLANNING &
TACTICAL MARKETING PLANNING
Strategic marketing planning comes first when you're creating your marketing plan. It deals with
the direction of your business growth in relation to your competition and the brand image
necessary to advance your market position. Then comes tactical marketing planning, which
consists of planning the actual activities that improve your competitive position and convey your
brand image. Strategic marketing is the idea. Tactical marketing is the action.
Strategic Marketing Planning
Planning marketing strategy requires a thorough understanding of trends in your industry, your
competitive position and the demographics and buying habits of your target customer. Achieve
this understanding through industry and market research; then formulate your goals. Your
strategy is the road map that helps you to achieve our goals and comprises a financial plan
entailing your marketing budget as well as a conceptual plan. If you run out of money before
your strategies can be implemented, your marketing may not achieve your goals.
Strategic Planning Process
Perform a SWOT analysis to discover the strengths, weaknesses, opportunities and threats
presented by the industry. Do industry research and market research to develop a thorough
understanding of your company's business environment. Identify and prioritize the main
opportunities and threats. Don't attempt to tackle all the opportunities and threats in a single
marketing season. Choose only those that are supported by your company's strengths and
financial capabilities. Don't hesitate to plan your strategies around only one element of your
findings -- too many goals will overwhelm your staff and dilute the effectiveness of your
marketing message. Settle on the brand identity message you wish to convey and apply SWOT
analysis to the messages conveyed by your competition. Use this analysis to determine where
you can fill gaps and take advantage of the weaknesses of your competition. This is your
strategy.
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17. Tactical Marketing Planning
Advertising, community building and sales promotions are all parts of your tactical marketing
plan. Advertising entails online, radio, television and print marketing. It communicates your
brand image and informs your target customer of your presence in the market and any
promotional events you're hosting. Plan only activities that directly support your strategic
marketing plan. If your strategy involves expanding into the high-end consumer market, your
tactics might aim to convey a quality image at a reasonable price. Advertising and events
showcasing the newest products and informational events designed to educate your customer
community about use and maintenance of your products can help to convey your company's
reliability as a prime reason the customer is better served by purchasing your high-end product
line.
Tactical Plan Preparation
Apportion the budget established in your strategic plan as necessary to cover your advertising,
community building and sales promotions. Set benchmarks for revenue production and adjust
your strategic assumptions if they aren't met. Tactical marketing is an ongoing set of activities
and evaluations. Schedule your advertising and events to optimize key times of your marketing
season and plan social networking efforts and newsletters to build a community of current and
potential customers. Spread your tactics out evenly through your marketing season so you
maintain the interest of your customer community and prevent your competition from taking
advantage of any lulls in your marketing.
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18. TACTICS ADOPTED BY FMCG COMPANIES FOR MAKING THEIR
BRANDS OUTSTANDING
Advertisements:
Some of the major strategies adopted by FMCG companies for making their brands outstanding
compared to competitions are as follows:
(i) Multi-brand Strategy
(ii) Product Flanking
(iii) Brand Extensions
(iv) Building Product Lines
(v) New Product Development
(vi) Product Life Cycle Strategy
(vii) Taking advantages of wide distribution network.
The success of an FMCG depends greatly on its marketing strategy. An FMCG marketer pursues
a wide combination of strategies. For instance, when prices are competitive, the company would
use an extensive distribution network, design suitable advertising and sales promotion schemes
from time to time.
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19. Following Are Some Strategies Adopted By FMCG Companies For Making
Their Brands Outstanding Compared To Competitors:
(i) Multi-brand Strategy:
A company often nurtures a number of brands in the same category. There are various motives
for doing this. The main rationale behind this strategy is to capture as much of the market share
as possible by trying to cover as many segments as possible, as it is not possible for one brand to
cater to the entire market.
Hindustan Lever have introduced many brands like “Dove” in premium segment, “Lifebuoy” for
economy segment and “Lux”, “Liril” and “Rexona” in the intervening segment, meaning
thereby, the company has not left any segment untouched.
(ii) Product Flanking:
Product flanking refers to the introduction of different combinations of products at different
prices, to cover as many market segments as possible. It is basically offering the same product in
different sizes and price combinations to tap diverse market opportunities. Shampoos in small
sachets, Pan masala in small pouches and premium detergents (Tide, Aeriel etc.) in small
pouches are examples of this strategy.
(iii) Brand Extensions:
Hindustan Lever’s Lifebuoy soap’s brand extensions are Lifebuoy Plus, Lifebuoy liquid and
Lifebuoy Gold, since these brands have been positioned at different segments. Similarly, Amul
butter, Amul ghee, Amul cheese and Amul chocolates are various brand extensions of regular
Amul Brand. Companies make brand extensions in the hope that the extensions will be able to
ride on the equity of the successful brands.
(iv) Building Product Lines:
Hindustan Lever has added product lines one after another starting from Lifebuoy, Lux, Liril,
Dove etc. Similarly, Britannia Industries have related biscuits as differed product lines.
Companies add related new product lines to give consumers at the products they would like to
buy.
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20. (v) New Product Development:
Proctor and Gamble is shown as the number one company in the world reputed for new products
development. Companies that fail to develop new products would expose themselves to great
risk and might face stagnation in future.
The existing products are vulnerable to changing consumer needs and tastes, new technologies,
shortened product life cycles and increased domestic and foreign competition. A company can
develop new products either through R&D in-house or by acquiring other company or both.
(vi) Product Life Cycle Strategy:
An FMCG has short life cycle whereas an industrial product has long PLC. According to PLC,
companies plan to develop new products after abandoning the old product which has experienced
the decline stage of PLC curve. For example, existing models in products like automobiles,
motor cycles, TV sets and watches etc. in India have experienced good demand whenever new
option have been offered.
(vii) Taking advantages of wide distribution network:
A very simple way of increasing an FMCG company’s market share is by developing a strong
distributions network, preferably in terms of more locations. An extensive distribution system
can be developed over time, or the company may acquire another company which has an
extensive distribution network. Coca-Cola and PepsiCo’s wide distribution network systems
have made them market leaders.
MARKETING STRATEGIES
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21. SWOT Analysis
Strengths Weaknesses
1. Low operational costs
2. Presence of established distribution
networks in both urban and rural
areas.
3. Presence of well-known brands in
FMCG sector.
4. Deep roots in local culture & great
understanding of consumer needs
1. Lower scope of investing in
technology and achieving economies
of scale, especially in small sectors
2. Low exports levels
3. Counterfeit Products. These
products narrow the scope of FMCG
products in rural and semi-urban
market.
Opportunities Threats
1. Untapped rural market
2. Rising income levels, i.e.
increase in purchasing power of
consumers
3. Large domestic market- a
population of over one billion.
4. Export potential
5. High consumer goods spending
1. Removal of import restrictions
resulting in replacing of domestic
brands
2. Slowdown in rural demand
3.Tax and regulatory structure
Distribution Channel Of FMCG Product
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22. KEY ELEMENTS OF MARKETING STRATEGY
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Distribution channel of
FMCG product
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23. There are many elements to strategy. However, if we were to design marketing strategy as an
environment, then we will find that the 7 elements shown in the diagram are the ones which
make a huge difference in marketing strategy.
Each of these elements is dynamic in nature on their own. Naturally, when one element changes,
then all the others will also change. Each of the 7 key elements of marketing strategy, have their
own depending variables which define that element.
So for example – A customer as an element is not just a customer, but he also includes different
variables like customer service of the company, customer’s expectations, his value definition and
many different such variables which keep changing. And the combination of these variables for
the single element i.e Customer. So if there are 7 different key elements of marketing strategy,
then you can understand how many different variables are involved in defining marketing
strategy.
Hence, strategy decisions are always difficult and are left to the most experienced people in the
organization.
The key elements of marketing strategy are divided in two parts. One is the internal environment
and the other is the external environment.
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24. The internal environment (environment which the company can control) consists of customers,
corporation and competition. These are entities which the company can control and at least
influence. And hence these three entities form a triangle, each influencing the other.
The external environment (environment which the company cannot control) consists of the
PEST environment. This environment influences the decision making of the internal
environment. However, each entity of the internal environment cannot influence the external
environment.
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25. Although customers have the most power, the technology, political, economical or social aspects
can change at any time due to any incidence. And hence, to survive the external environment, the
internal environment has to adjust very fast.
1) Customers
The reason why marketing is evolving and the reason we need so many strategies in place is the
Customer. I am writing this article and i am a customer. My purchase habits, decisions are
completely different then you, who are reading this article and are also a customer. Any strategy
considers customers as the starting point of the strategy and then moves forward. Hence,
strategies generally start with segmentation, targeting and positioning and then move forward.
2) Corporation
By corporation, we mean the internal strengths and weaknesses of the company. SWOT
analysis is a strong analysis tool of corporations to determine what the corporate is capable of,
and what cannot be achieved by the corporate. To design a strategy, the corporate needs to
conduct its own internal analysis and then take the right decisions.
3) Competition
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26. The competition influences both – corporation as well as customers. In fact, competition can
become one of the contributors to external environment, specifically technological environment.
Tackling competition is one of the biggest challenges in the internal environment – a challenge
which consumes maximum time of the company and involves maximum resources to be spent.
Branding and marketing activities take place partially because of ever increasing fear of
competition.
4) Political Environment
Many things influence the political environment of a country. Level of control over policies,
business friendliness, political structure as well as various other factors help build the political
and legal environment of a country. Places like Syria, Iraq and Iran are not places where
businesses will find the political environment conducive.
5) Technological Environment
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27. Many of my readers will be reading this article on a smartphone. Was that possible a decade
back? What happened to all those companies which were top of the line a decade back? Where is
Nokia? The technological environment changes so fast, that companies that do not adapt, fail.
Hence, technology is a prominent element of marketing strategy.
6) Social Environment
McDonalds keeps changing its menu in each new country it enters. This is because of the social
environment. Countries like US and UK are beef friendly whereas in places like India it is
mostly banned & people don’t go to beef serving hotels and restaurants. So the social
environment is different in different places. Based on the social environment, the strategy also
differs.
7) Economic Environment
If you wanted to launch a premium product, then the economical environment of a country
matters a lot. Many brands are still present only in developed countries, and not even in
developing countries. This is because of the low GDP of developing and under developed
countries, which will not give the desired margins to a premium established brand. Hence, while
designing a strategy, you need to target the right economic market to enter. Even FMCG’s
consider the economy of a market before entering that market, although FMCG products are
known to be the most penetrative.
Overall, in the framework of strategy, the above elements are critical to design the
appropriate marketing strategy.
Marketing Mix – The 4 p’s of marketing
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28. The Marketing mix is a set of four decisions which needs to be taken before launching any new
product. These variables are also known as the 4 P’s of marketing. These four variables help the
firm in making strategic decisions necessary for the smooth running of any product /
organization. These variables are
Product marketing mix
Comprised of Product, price, place and promotions. This marketing mix is mainly used in case
of Tangible goods.
The term marketing mix was first coined by Neil H Borden back in 1964 in his article “The
concept of marketing mix”. Several strategic analysts over the years believe that the marketing
mix can make or break the firm. Having the right marketing mix at the start of the marketing
plan is absolutely essential. Over time the concept of marketing mix has provided a steady
platform for the launch of a new product or business.
As mentioned before, the marketing mix is characterized by four different but equally important
variables. These variables are never constant and may be changed over time. However, a change
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29. in one of the variables may cause a change in all the other variables as well. The variables are as
follows
1) Product – The first thing you need, if you want to start a business, is a product.
Therefore Product is also the first variable in the marketing mix. Product decisions are
the first decisions you need to take before making any marketing plan. A product can be
divided into three parts. The core product, the augmented product and the tertiary
product. Before deciding on the product component there are some questions which you
need to ask yourself.
What product are you selling?
What would be the quality of your product?
Which features are different from the market?
What is the USP of the product?
Whether the product will be branded as sub brand or completely new?
What are the secondary products which can be sold along with primary?
Based on these questions, several product decisions have to be made. These product decisions
will in turn affect the other variables of the marketing mix. For example – You launch a car with
is to have the highest quality. Thus the pricing, promotions and placing would have to be altered
accordingly. Thus as long as you dont know your product, you cannot decide any other variable
of the marketing mix. However, if the product features are not fitting in the marketing mix, you
can alter the product such that it finds a place for itself in the marketing mix.
2) Pricing
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30. Pricing of a product depends on a lot of different variables and hence it is constantly
updated. Major consideration in pricing is the costing of the product, the advertising and
marketing expenses, any price fluctuations in the market, distribution costs etc. Many of
these factors can change separately. Thus the pricing has to be such that it can bear the brunt
of changes for a certain period of time. However, if all these variables change, then the
pricing of a product has to be increased and decreased accordingly.
Along with the above factors, there are also other things which have to be taken in consideration
when deciding on a pricing strategy. Competition can be the best example. Similarly, pricing also
affects the targeting and positioning of a product. Pricing is used for sales promotions in the form
of trade discounts. Thus based on these factors there are several pricing strategies, one of which
is implemented for the marketing mix.
3) Place
Place refers to the distribution channel of a product. If a product is a consumer product, it
needs to be available as far and wide as possible. On the other hand, if the product is
a Premium consumer product, it will be available only in select stores. Similarly, if the
product is a business product, you need a team who interacts with businesses and makes the
product available to them. Thus the place where the product is distributed, depends on the
product and pricing decisions, as well as any STP decisions taken by a firm.
Distribution has a huge affect on the profitability of a product. Consider a FMCG company
which has national distribution for its product. An increase in petrol rates by 10 rs will in fact
bring about drastic changes in the profitability of the company. Thus supply chain and logistics
decisions are considered as very important costing decisions of the firm. The firm needs to have
a full proof logistics and supply chain plan for its distribution.
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31. 4) Promotions
Promotions in the marketing mix includes the complete integrated marketing
communications which in turn includes ATL and BTL advertising as well as sales
promotions. Promotions are dependent a lot on the product and pricing decision. What is the
budget for marketing and advertising? What stage is the product in? If the product is
completely new in the market, it needs brand / product awareness promotions, whereas if the
product is already existing then it will need brand recall promotions.
Promotions also decide the segmentation targeting and positioning of the product. The right kind
of promotions affect all the other three variables – the product, price and place. If the
promotions are effective, you might have to increase distribution points, you might get to
increase the price because of the rising brand equity of the product, and the profitability might
support you in launching even more products. However, the budget required for extensive
promotions is also high. Promotions is considered as marketing expenses and the same needs to
be taken in consideration while deciding the costing of the product.
Thus as we see from the above diagram, all the four variables of marketing mix are inter related
and affect each other. By increasing the pricing of the product, demand of the product might
lessen, and lesser distribution points might be needed. On the other hand, the product USP can be
such that maximum concentration is on creating brand awareness, thereby increasing need of
better pricing and more promotions. Finally, the overall marketing mix can result in your
customer base asking for some improvement in the product, and the same can be launched as the
upgraded product.
THE ROLE OF MARKETING MIX IN STRATEGY
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32. Marketing mix plays a crucial role while deciding the strategy of an organization. It is the first
step even when a marketing plan or a business plan is being made. This is because, your
marketing mix decision will also affect segmentation, targeting and positioning decisions. Based
on products, segmentation and targeting will be done. Based on the price, positioning can be
decided. And these decisions will likely affect the place and promotion decisions. Thus, the
marketing mix strategy goes hand in hand with segmentation targeting and positioning.
The above four P’s of marketing give you an overall look at the product marketing mix. If your
product is a service then there are 3 further P’s taken into consideration namely – people,
physical evidence and process. For the same, you can refer the Service marketing mix.
New Product Launching Strategies Of FMCG Products
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33. Top 10 FMCG’s Companies In INDIA
33
Market Capitalization
 256,769 crores
 127,144 crores
 49,768 crores
 28,107 crores
 27,261 crores
 23,435 crores
 18,329 crores
 13,137 crores
 10,788 crores
 9,555 crores
 ITC Ltd
 HUL
 Nestle (INDIA)
 Godrej Consumer
Products Ltd
 Dabur India Ltd
 GlaxoSmithKline
Consumer Healthcare
 Colgate Palmolive
 Marico Ltd
 Emami
 Procter & Gamble (India)
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34. Top 10 FMCG’s Companies In World:
1.Multibrand Strategy
34
 Nestle
 Procter & Gamble
 Coca-Cola
 Anheuser-Busch InBev
 Philips Morris
International
 Unilever
 PepsiCo
 British American
Tobacco
 Reckitt Benckiser Group
 General Mills
 Market Value: $233.5 B
 Market Value: $208.5 B
 Market Value: $173.1 B
 Market Value: $153.5 B
 Market Value: $150.6 B
 Market Value: $122.3 B
 Market Value: $118.9 B
 Market Value: $102 B
 Market Value: $51.2 B
 Market Value: $29.9 B
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35.  Marketing of two or more similar and competing products by the same firm.
 A company often nurtures a number of brands in the same category. There are various
motives for doing this.
 The main rationale behind this strategy is to capture as much of the market share as
possible by trying to cover as many segments as possible, as it is not possible for one
brand to cater to the entire market.
 This also enables the company to lock up more distributer shelf space.
Example :
Hindustan Lever . It has Dove in the ultra premium segment, Lifebuoy for the economy
segment and brands like Rexona, Liril, Lux, Le Sancy for the intervening segment.
2.Product Flanking
 Refers to the introduction of different combinations of products at different prices, to
cover as many market segments as possible.
 It is basically offering the same product in different sizes and price combinations to tap
diverse market opportunities.
 The idea behind this concept is to flank the core product by offering different variations
of size and price so that the consumer finds some brand to choose from.
Example:
Vicks the cough and cold relieving medicine is now available in small containers and also as
inhalers, cough drops and cough syrups.
3.Brand Extensions
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36.  Companies make brand extensions in the hope that the extensions will be able to ride on
the equity of successful brands, and that the new brand will stand in its own right in the
course of time.
 A well respected brand name gives the new product instant recognition and easier
acceptance.
 It enables the company to enter new product categories more easily.
Example:
Amul. With the success of its first product, Amul milk powder, the company came out with
Amul ghee, Amul butter, Amul cheese, Cheese spread, and finally added Amul chocolates to its
portfolio.
4.Building Product Lines
 Some companies add related new product lines to give the consumer all the products
he/she would like to buy under one umbrella.
Example:
Britannia has adopted a similar strategy. It has introduced different kinds of biscuits and backed
foods in the past few years. By adding a number of flavours in each product line the company
grew in the industry.
5.New Product Development
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37.  A company can add new products through the acquisition of other companies or by
devoting one’s own efforts on new product development.
 With the help of new products a company can enter a growing market for the first time,
and supplement its existing product lines.
Example:
Dove by HLL is an example of creating an entirely new premium segment. For the first time
in India, a soap with One-fourth moisturiser was offered to the consumer.
It has been positioned for the super premium segment as a skin care product not as a
soap.
6.Innovations in Core Products
 In the FMCG market, the life of a product is short.
 Marketers continually try to introduce new brands to offer something new
and meet the changing requirements of customer.
 It is prudent for a marketer to innovate from time to time both by
technological expertise as well as from the consumer’s or dealer’s feedback.
 Such innovations are tried out around the core products of a company.
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38. 7.Long term outlook
 Many companies adopt a long term outlook towards growth in an FMCG market. In the
process, short term gains which might adversely affect the long term prospects of the
company are sacrificed.
Example:
Kellogg’s in Mexico.
 The concept of cornflakes for breakfast promoted by Kellogg’s is entirely American in
nature and in Mexico which is culturally so different from America, could not accept.
 Kellogg’s with its long term outlook took 28 years before finally breaking even. Today is
the market leader in the breakfast cereals market, enjoying an unparalleled monopoly.
8.Extending the PLC
 Economic conditions change, competitors launch new assaults, and the products
encounters new types of buyers and new requirements are situations in which a FMCG
company try to extend the PLC.
 In the mature stage of the PLC, some companies abandon their weaker products. They
prefer to concentrate their resources on their more profitable products and quickly
develop new products.
Example:
Existing models in products like automobiles, motorcycles, watches and cameras in India
have experienced a good demand whenever new options were offered.
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39. 9.Expanding markets by usage
 A company usually expands the market for its brand in two ways, either to increase the
number of customers or by encouraging more consumption per intake
.
 The usage rate of the consumers can be increased in 3 ways :
1) It may try to educate or persuade customers to use the product more frequently.
2) The Company can try to induce users to consume more of the product on each occasion.
3) The company can try to discover new product uses and convince customers to use the
product in more varied ways.
 10.Wide distribution network
 A very simple way of increasing FMCG company’s market share is by developing a
strong distribution network, preferably in terms of more locations.
 An extensive distribution system can be developed over time, or the company many
acquire another company which has an extensive distribution network.
Example:
Brooke Bond, Asian Paints, Hindustan Lever, Union Carbide have developed a good
distribution network.
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40. 11.Monitoring the pulse of the consumers
 Companies spend considerable effort to find out the what, where, how and when of their
consumers.
 Well known companies frequently undertake marketing research to find out more about
their consumers and how to satisfy their needs and wants in a better manner.
 It helps them to monitor the pulse of their buyers.
Example:
We may cite here the famous Marketing Research about instant coffee.
12.Advertising and Media coverage
 Advertising is required to build awareness about an FMCG or brand which is available in
the market but not many people might know about it.
 Informative advertising figures heavily in the pioneering stage of a product category,
where the objective is to build primary demand.
 Persuasive advertising becomes important in the competitive stage where the objective is
to build a selective demand for a particular brand.
 Reminder advertising is quite common with mature products.
Example:
Expensive four colour Coca-Cola ads in magazines tries to remind people to purchase it.
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41.  13.Sales promotion
 Sales promotions offer a direct incentive to buy more in the short term.
 They are designed to stimulate quicker and/or greater purchase of particular products by
consumers or the trade.
Example :
Pepsi has been doing a large amount of promotions since the time it entered India. Pepsi
cassettes and T-shirts have been offered to young people all over the country.
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42. OBJECTIVE OF STUDY
 To find out the role of marketing tactics in new FMCG product launch.
 To find out the scope and potential of launching new product.
 To find out the problem faced by company when company launch product.
 To study the promotional activity by actively participating in it.
 To study the effects of marketing tactics in FMCG sector’s.
 To study the consumer preference with respects to marketing strategies in launching of
new FMCG products.
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43. 5. Research Methodology:
Research is an Endeavour to discover answers to intellectual and practical problems through the
application of scientific method. Research is the systematic process of collecting and analyzing
information (data) in order to increase our understanding of the phenomenon about which we are
concerned or interested. It is an extensive survey of all available past studies relevant to the field
of investigation. It gives us knowledge about what others have found out in the related field of
study and how they have done so.
A research methodology is the specification of methods and procedures for acquiring the
information needed to structure or to solve problems. It is the overall operational pattern or frame
work of the project that stipulates what information is to be collected from which sources, and by
what procedures. If it is a good design it will ensure that the information obtained is relevant to
the research problem and that it was collected by objective and economical procedures.
A research design might be described as a series of advance decisions that, taken together, from a
specific master plan of model for the conduct of the investigation. Although research designs
may be classified by many criteria, the most useful one concerns the major purpose of the
investigation.
 Type of Research-
Exploratory research or Formulate research.
The research has been conducted within the data and information available to gain familiarity
with the problem, to generate new ideas or to make a precise formulation of the problem. The
current scenario is observed and an attempt has been done to relate the various variables.
The major purposes of exploratory studies are the identification of problems, the more precise
formulation of problems (Including the identification of relevant variables), and the formulation
of new alternative courses of action. An exploratory study is often the first in the series of
projects that culminate in one concerned with the drawing of inferences that are used as the basis
of management action.
That is, an exploratory study is often used as an introductory phase of a larger study and results
are used in developing specific techniques for the larger study. Secondary sources of information,
as used in the section, are the rough equivalent of the “Literature” on the subject.
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44. Research Design:
The research design states that the conceptual structure within which the study should be
conducted is descriptive in nature. The researcher used descriptive study to describe the
FUTURE OF SME’s in INDIA and also find the SME’s FINANCING in INDIA and problem of
SME’s.
Primary data
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45. Questionnaire & Interpretation
1. Do you like eating snacks?
A. Yes (90%)
B. No (10%)
90.00%
10.00%
Do you like eating snacks?
yes no
2 What snacks do you usually have?
A Chips (20%)
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46. B Sweets (50%)
C Chocolates (30%)
D Others (0%)
20.00%
50.00%
30.00%
Series 1
Chips
Sweets
Chocolates
Others
3 What is your favorite snack?
A Chips (20%)
B Sweets (40%)
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47. C Chocolates (40%)
D Others (0)
0.5 1 1.5 2 2.5 3 3.5 4 4.5
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Size
4 How often do you have snacks?
A Once a day (30%)
B Twice a day (20%)
C Three to four times a day (10%)
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48. D Others (40%)
30.00%
20.00%
10.00%
40.00%
Size
Once a day 2 Twice a day
Three to four times a day Others
5 Where do you buy snacks?
A Supermarket (10%)
B kirana Shop (40%)
C Tapri (30%)
D Others (20%)
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49. 10.00%
40.00%
30.00%
20.00%
Purchases
Supermarket kirana Shop Tapri Others
6 How many rupees do you usually spend on snacks in a week?
A Less then Rs20 (20%)
B Rs21-50 (60%)
C Rs51-100 (10%)
D Above $100 (10%)
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50. Less then Rs20 Rs21-50 Rs51-100 Above $100
20%
60%
10% 10%
Size
Size
7 Do you think that eating snacks can replace the meal?
A Yes (30%)
B No (70%)
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51. 30.00%
70.00%
Do you think that eating snacks can replace the meal?
Yes No
8 What do you think about snacks?
A Healthy (5%)
B Unhealthy (90%)
C Others (5%)
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52. 5.00%
90.00%
5.00%
What do you think about snacks?
Healthy Unhealthy Others
9 Will you give up on eating snacks?
A Yes (10%)
B No (90%)
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53. 10.00%
90.00%
Will you give up on eating snacks?
Yes No
10 Do you have snacks in school or at home?
A School (10%)
B Home (10%)
C Both (80%)
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54. Both
Home
School
0%
10%
20%
30%
40%
50%
60%
70%
80%
80%
10%
10%
Do you have snacks in school or at home?
11 Do you share your snacks with your friends?
A Yes (90%)
B No (10%
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55. Yes
No
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Do you share your snacks with your friends?
Do you share your snacks with your friends?
)
Findings
 This questioner is made for deciding the marketing tactics for promotion of product.
 The target audience for this questioner are the school going kids.
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56.  Every buddy like to eat snacks.
 We saw many people like to eat chocolates and chips as sacks.
 Now days kids are moving to words other snacks like MacD, KFC& others
 Parents are now a days want there kids to eat healthy things
 Kids have the mentality that snack are unhealthy.
Limitations of the study
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57.  There are the constraints of time and cost.
 Companies didn’t give internal data
 Internal guidelines are not available
 The study is conducted only for the partial fulfillment of the MMS program
SUGGESTION & RECOMMENDATIONS
 Seminars should be held for providing information to prospective and present customers.
 Improvement in process in business is required.
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58.  There should be a different event department, those who would do event activity on daily
basis.
 Market research is one of the important aspect to form a strategy so company should do it
regular basis because like and dislikes are changing day by day.
 Improve CRM & PRM
 Provide training to the sales force.
CONCLUSION
Thus from the above projection, many things helped me to be clear about the actual work
and process done in Beta Testing. With help of surveys it was seem that coming
in contact with unknown person is not so difficult but some of the people response was
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59. not so good. By doing marketing it gave a lot of knowledge and self confidence.
many snack today, available in most supermarkets and key outlets. All people like to eat snack in
both flavor i.e. sweet n salty and now a days people moving to word other snacks store or out
lets like McDonald, KFC, Subway, Dominos, etc. they are like to having this kind of snacks.
Parents are now a days very health conscious they like that there child should eat healthy as well
as testy.
During this project work I get to know that market research is very necessary to use or apply any
Kind of marketing tactics or strategy. It is very necessary to apply marketing tactics for
increasing sales, getting more and more market share, promotion and advertising of new and
existing product and also launching of new products.
They should also focused on T&D for sales force betterment & provide emphasis on CRM, PR
Activities.
BIBLIOGRAPHY
 http://www.betatesting.co.in/
 http://cultbranding.com/ceo/52-types-of-marketing-strategies/
 http://www.designandpromote.com/the-many-types-of-marketing/
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60.  www.wekipedia.com
 www.managementparadise.com
 www.whatsmarketing.com
 www.ask.com
 www.marketingmixx.com
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