SESSION 17: Sustainable / Holistic Marketing

Sustainable Marketing or Holistic Marketing refers to way of marketing which incorporates needs of the customer, the organization and the society in general, and a nation as a whole  over a long term. Sustainable marketing covers factors such as corporate social responsibility, ecological marketing etc.  An approach which leads to better relationship with consumers by directly supplying goods and services needed by them can also be termed as holistic marketing.

The holistic marketing concept is a relatively new marketing perspective that takes into account the entire organization in addition to its counterparts when determining or executing its overall marketing strategy. Holistic includes many people from suppliers, to employees, customers, shareholders, the community at large, and the environment. In order for a company to achieve success in today’s business landscape, it must take into all the complexities. Because companies can no longer solely control their brand image or marketing efforts through the traditional channels of broadcast media, direct mail, advertising, or public relations , in order to be successful the focus is going to have to shift to managing and servicing customer wants and needs, employee and stakeholder satisfaction. Today’s companies are no longer an entity who is just involved in reaping profits out of the nature of businesses they are in. Rather they have assumed important chain of nation builder’s in today’s context.

HOLISTIC MARKETING OF LUX SOAPS:

• It is  focusing on health and hygiene education, women empowerment and water management.
• It is involved in education and rehabilitation of special and underprivileged children, care for destitute and HIV positive and rural management.
• HUL has also responded in case of calamities adversities and contributions through welfare measures.
• It has touched 84.6 million people in 43890 villages of 8 states. their vision is to make a billion Indians feel safe and secure.
• it provides income generation to 45000 shakti entrepreneurs in rural areas across 15 states in 100,000 villages under project shakti.

SESSION 16: MARKETING STRATEGIES OF LUX SOAPS

MARKETING STRATEGIES OF LUX SOAPS

Lux has focused on wide promotions most of which has been short lived. Apart from tagging itself as a beauty brand made for the stars, it has even designed short term promotions for sales. One of the famous ones being:

“The Lux Gold Star Offer” – This was one of the popular promotions which offered gold coins in few selected soaps.

“Star Bano Aish Karo” – This offer gave a chance to few lucky winners who got a chance to live a day like Aishwarya Rai with gift offers worth Rs.50,000 from Shopper’s Stop and beauty makeover by Michelle Tung and Neeta Lulla sarees (Aishwarya Rai’s favorite stylist and designer). The bumper prize was dinner date with Aishwarya Rai herself and later in 2009 the same offer changed into a dinner date with Aishwarya Rai Bachchan and Abhishek Bachchan together.

“Har Star Lucky Star”- This came at the time when Shahrukh Khan was aired in Lux advertisements when the brand had finished 75 years of stardom. In this offer, selected lux soap packets had stars printed with number 75 inside the wrapper. The lucky winners got the opportunity to avail free supply of Lux soaps for a year.

Recent Advertisements

Katrina Kaif has been roped in to become the brand ambassador of Lux lately. In the most recent advertisement of July,2012  which stars both Katrina Kaif and Shahrukh Khan in the campaign. They endorsed two variants of the Lux soap – Lux Peach and Cream and Lux Strawberry and Cream. The fragrance of the new Lux soap stands for love and sensuality and the ad uses the slogan – “Bekaboo”. The ad was made to be promoted at the time when both Shahrukh Khan’s and Katrina Kaif’s movie was about to be released.

SALES PROMOTION

• Active since 1929

• Featured all top actresses of their time

• Idea: if it is good enough for a film star, it is good enough for me

•  have been associated with all top actresses
  
  
  
• First male brand ambassador
  

SESSION 15:SEGMENTATION, TARGETING AND POSITIONING

SEGMENTATION

A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segments and decide which one(s) to target. The major segmentation variables are —geographic, Demographic, psychographic, and behavioural segmentation. For segmentation in the Indian Context factors such as below are followed:

1.     Geographic Regions – India is a varied country in terms of consumer base. North is different than south in buying patterns so is west & east India. No particular sub - region even in one region has the same consumer characteristics in terms of buying and selling.

2.     City Size & Density – The population in a particular city or the density are also a basis on which the segmentation is done.

3.     Family Life Cycle & Gender – Family Life Cycle (FLC) & Gender are also taken into consideration when segmentation of a market is carried out.

4.     Income & Occupation – Income & Occupation are also taken into account. The income levels and the occupation the individual is in is also form a basis for segmentation.

5.     Education – Education levels of individuals are also taken into account. Whether the consumer is a school pass - out, in college, graduate, post graduate or a professional has a direct effect on the consumer buying pattern for the individual.

6.     Religion – Religious factors also play a big role in multi – cultural diverse country like India. Marketers carry out the segmentation of the market also on the socio – cultural & religious factors.

MARGET SEGMENTATION OF LUX:

Gender: female

Age- 16 to 40

Income- Middle income group 

Highest selling soap in both urban and rural areas

Affordable

Targetting 

Once segmentation of a market is done, targeting that group with the company’s product is essential. Target Market operates at four main levels – Mass Market, Multiple Segments, Single (or Niche) segment, and individuals. 

A mass market targeting approach is adopted only by the biggest companies like Lux. Many companies target multiple segments defined in various ways such as various demographic groups who seek the same product benefit. Multiple Segments are those segments which can be targeted by the companies to get a wider consumer base. Niche targeting is a recent phenomenon. Companies & Marketers have now realized that there exists a segment which is willing to buy products of a premium level provided the services offered are of a luxury level. An individual is now becoming more important to marketers as  now companies have realized that even an individual now has the potential to create or mar an image of the product by talking on new age mediums like social networking sites. Companies are now approaching individuals to consult them on the innovation which can be brought in the products. 

POSITIONING

To develop an effective positioning, a company must study competitors as well as actual and potential customers. Marketers need to identify competitors’ strategies, objectives, strengths, and weaknesses.
A company should also pay attention to latent competitors, who may offer new or other ways to satisfy the same needs. A company should identify competitors by using both industry- and market-based analyses.

Points-of-difference are those associations unique to the brand that are also strongly held and favourably evaluated by consumers. Points-of-parity are those associations not necessarily unique to the brand but perhaps shared with other brands. Category point-of-parity associations are association’s consumer’s view as being necessary to a legitimate and credible product offering within a certain category. The key to competitive advantage is relevant brand differentiation— consumers must find something unique and meaningful about a market offering. These differences may be based directly on the product or service itself or on other considerations related to factors such as employees, channels, image, or services. Although small businesses should adhere to many of the branding and positioning principles larger companies use, they must place extra emphasis on their brand elements and secondary associations and must be more focused and create a buzz for their brand.

Lux has created a good position in market, where it has become a synonym to soap. its continuous effort  of innovation has made it a market leader.

SESSION 14: SALES MANAGEMENT

Sales Management:

Sales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations. It is an important business function as net sales through the sale of products and services and resulting profit drive most commercial business. These are also typically the goals and performance indicators of sales management.

For LUX, sales are typically in the retail stores. The consumer just has to ask for that particular LUX product in the retail shop or if its a super market he just has to locate it and buy it

.

LUX also has some franchisee shops that offer typically only LUX products.

SESSION 13:ORGANIZATION BUYING

Organization Buying

Organization buying is the bulk buying that an organization does for resale or manufacturing purposes.
Also it helps Lux because they sell large volumes of soaps. For example: Lux sells its small packs to  railways in huge numbers, hence it helps Lux in terms of volume, it also helps the buyer because since they require only small quantity, these packs are perfect for them. Overall its a win-win situation.:
Another example  are the retailers or the franchisees or the mom-pop stores that buy Lux soapsr in bulk to sell in their shop. Bulk buying helps in getting the buyer better and cheap prices for that product.
Also it helps Lux because they sell large volumes of soaps. For example: Lux sells its small packs to  railways in huge numbers, hence it helps Lux in terms of volume, it also helps the buyer because since they require only small quantity, these packs are perfect for them. Overall its a win-win situation.

Organization Buying Behaviour or the Organizational Buying is the decision making process organizations establish the need for purchased products and services, then identify, evaluate, and choose among alternative brands and suppliers. Business market is a dynamic place where firms & other companies buy from different firms or companies which includes goods & services for the productions of different goods & services which are then sold, rented or supplied to others. FMCG Companies like Lux also are into organization buying from the suppliers who supply the different kinds of raw materials to them. It is like a chain of companies inter – connected to provide services to one another.
When one compares Business Buying to Consumer, it has fewer customers but larger ones. One also gets to see closer business relationships in Business Buying. This is because of the nature of the business where each buyer or supplier is depended on the other for providing the services. Lux has a well-connected network from which it buys because of the nature of business it is in. The Businesses in Fast Moving Consumer Goods segment are depended on the consumers market demand for the business market demand. The demand is also depended on the business cycle.
Lux will have a buying centre which will be a decision making unit of the organization when it comes to buying from organizations. It consists of initiators, users, influencers, deciders, approvers, buyers, and gatekeepers. To influence these parties, marketers must be aware of environmental, organizational, interpersonal, and individual factors.
·  Initiators - Users or others in the organization who request that something be purchased.
·  Users - Those who will use the product or service. In many cases, the users initiate the buying proposal and help define the product requirements.
· Influencers  - People who influence the buying decision, often by helping define specifications and providing information for evaluating alternatives.
· Deciders - People who decide on product requirements or on suppliers.
·  Approvers - People who authorize the proposed actions of deciders or buyers.
·  Buyers - People who have formal authority to select the supplier and arrange the purchase terms. Buyers may help shape product specifications, but they play their major role in selecting vendors and negotiating.
· Gate Keepers – These people prevent the sellers from directly accessing the decision making process e.g. Telephone Operators, Receptionists etc.

The buying process consists of eight stages called buy phases: (1) problem recognition, (2) general need description, (3) product specification, (4) supplier search, (5) proposal solicitation, (6) supplier selection, (7) order routine specification, and (8) performance review.
In Problem Recognition, the problem or the need for a buying a product for the business is identified. It also takes into account the need which can be from internal factors or the external factors. Lux will take into account the need when someone from inside the company points out the need to buy a product or service or someone from external sources brings to the attention of the company. In General Need Description & Product Specification, the specialists from internal sources of Company like Lux will advise the company on the exact requirements of the product.  In supplier search, the right supplier will be selected after going through the specifications for the right product. Proposal solicitation will be the next stage in the process where the proposal will be reviewed and the supplier will be selected in the next stage. Once the supplier is selected, the performance review will take place which will determine whether the buying process & the product supply is taking place according to the laid down procedures.

SESSION 12:DISTRIBUTION CHANNEL

Distribution channel of lux

HUL’s distribution network is recognized as one of its key strengths -- that which helps reach out its products across the length and breadth of this vast country. The distribution network of LUX is no different. The need for a strong distribution network is imperative, since Lux has to gain the visibility and has to capture the minds of indians everywhere. It has 2000+ suppliers and associates 7,000 stockists and direct coverage in around 1million retail outlets across India. To meet the ever-changing needs of the consumer, LUX has set up a distribution network that ensures availability of all their products, in all outlets, at all times. This includes, maintaining favorable trade relations, providing innovative incentives to retailers and organizing demand generation activities among a host of other thingsThe first phase of the distribution network had wholesalers placing bulk orders directly with the company. Large retailers also placed direct orders, which comprised almost 30 per cent of the total orders collected. Today, the goods are transferred from the factory to the company warehouses and are sent to the distributor from there on a daily basis. From the distributor, the stock reaches the market through daily sales. Typically, these include the salesman registering the order of a retail outlet and delivering the goods the next day. Recently it has changed its traditional way distribution and came out with a new strategy of distribution. It‘s because of the change in buying pattern of the consumer due to more disposable income. There are different channels of distribution like Modern Trade, which covers all chains of super markets, who get the stocks directly from the company.Wholesalers and second leg of big retail outlets called Super Value stores come under the surveillance of the distributor along with the mass retail outlets. There is also this new concept in the it’s distribution channel called Kiosk. Kiosk is a small shop that sells only sachets and low priced items (below Rs.10/-). Kiosk also does not come under the surveillance of the distributor. In addition to the ongoing commitment to the traditional grocery trade, it is building a special relationship with the small but fast emerging modern trade.

The Distribution in Rural Market:

The strategy of distribution should take into account the purchasing habit of the rural people. While consumables are purchased in the village shop or Shandies or in bigger villages, the consumer durables are purchased only in Mandi centers, large towns or near by cities. In villages beyond the reach of the distribution system, the shopkeepers make their own arrangement for the procurement. Most of them commute to the nearby town to get the supply. But the expenses incurred resulted in the village shopkeepers charging consumers more than the maximum retail price. Generally, the village shopkeeper invest their funds in purchases and rarely ever get credit facilities, which if available is made available for very short duration only. Since the quantum of purchase by the village shopkeeper is very small, the margins are also very meager. The ultimate consumer product reflects the lack of distribution network.

SESSION 11:IMC, ATL and BTL

IMC, ATL and BTL

Integrated Marketing Communications:

Integrated marketing communications (IMC) is an approach to brand communications where the different modes work together to create a seamless experience for the customer and are presented with a similar tone and style that reinforces the brand’s core message. Its goal is to make all aspects of marketing communication such as advertising, sales promotion, public relations direct marketing, online communications and social media work together as a unified force, rather than permitting each to work in isolation, which maximizes their cost effectiveness.
IMC is becoming more significant in marketing practice because of the reduced cost effectiveness of mass media and media fragmentation. As consumers spend more time online and on mobile devices all exposures of the brand need to tie together so they are more likely to be remembered.
Increasingly the strategies of brands cannot be understood by looking solely at their advertising. Instead they can be understood by seeing how all aspects of their communications ecosystem work together and in particular how communications are personalized for each customer and react in real time, as in a conversation.

How IMC helps:
1. It can create competitive advantage, boost sales and profits, while saving money, time and stress.
2. IMC wraps communications around customers and helps them move through the various stages of the buying process. The organisation simultaneously consolidates its image, develops a dialogue and nurtures its relationship with customers.
3. This 'Relationship Marketing' cements a bond of loyalty with customers which can protect them from the inevitable onslaught of competition. The ability to keep a customer for life is a powerful competitive advantage.
4. IMC also increases profits through increased effectiveness
5. Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process
6. Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature.
7. IMC also makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons.

Above the line (ATL), below the line (BTL), in organizational business and marketing communications, are advertising techniques, or different strategies companies use to sell their products.
In a nutshell, while ATL communications use media that are broadcast and published to mass audiences, BTL communications use media that are more niche focused. While both ATL and BTL communications can be used to either build brand awareness or drive sales through specific offers (promotions), it is BTL communication that gives the marketer the ability to tailor their messaging in a more personal manner to the audience

ATL(Above The Line) Promotion:

ATL is a type of advertising through media such as television, cinema, radio, print, and Out-of-home to promote brands or convey a specific offer. This type of communication is conventional in its nature and is considered impersonal to customers. It differs from BTL advertising, which uses unconventional brand-building and promotional strategies, such as direct mail, sales promotions, flyers, point-of-sale, telemarketing and printed media (for example brochures) – and usually involves no motion graphics. It is much more effective than when the target group is very large and difficult to define. 

BTL (Below The Line) Promotion: 

BTL sales promotion is an immediate or delayed incentive to purchase, expressed in cash or in kind, and having short duration. It is efficient and cost-effective for targeting a limited and specific group. It uses less conventional methods than the usual ATL channels of advertising, typically focusing on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates. BTL services may include those for which a fee is agreed upon and charged up front.
BTL is a common technique used for "touch and feel" products (consumer items where the customer will rely on immediate information rather than previously researched items). BTL techniques ensures recall of the brand while at the same time highlighting the features of the product.
Another BTL technique involves sales personnel deployed at retail stores near targeted products. This technique may be used to generate trials of newly launched products. It helps marketers establish one-to-one relationship with consumers while mass promotions, by definition, make it difficult to gauge consumer-response, except at the time of sales. Examples include tele-marketing, road shows, promotions, in- shop and shop-front activities, display units.

Lux soaps typically uses ATL promotions.