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MARKETING ASSIGNMENT
ldquoHINDUSTAN UNILEVER LIMITEDrdquo
TO BY
PROF ANIL KUMAR BHAVANA M
(19012)
INTRODUCTION TO HUL-HINDUSTAN UNILEVER LIMITED
Hindustan Unilever Limited (HUL) is Indias largest Fast Moving Consumer Goods Company touching the lives of two out of three Indians with over 20 distinct categories in Home amp Personal Care Products and Foods amp Beverages The companyrsquos Turnover is Rs 17523 crores (for the financial year 2009 - 2010)
HUL is a subsidiary of Unilever one of the worldrsquos leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about euro40 billion in 2009 Unilever has about 52 shareholding in HUL
Hindustan Unilever was recently rated among the top four companies globally in the list of ldquoGlobal Top Companies for Leadersrdquo by a study sponsored by Hewitt Associates in partnership with Fortune magazine and the RBL Group The company was ranked number one in the Asia-Pacific region and in India
HUL is also one of the countrys largest exporters it has been recognized as a Golden Super Star Trading House by the Government of India
The mission that inspires HULs over 15000 employees including over 1300 managers is to add vitality to life HUL meets every day needs for nutrition hygiene and personal care with brands that help people feel good look good and get more out of life It is a mission HUL shares with its parent company Unilever which holds 5155 of the equity The rest of the shareholding is distributed among 380000 individual shareholders and financial institutions
HUL has traditionally been a company which incorporates latest technology in all its operations The Hindustan Unilever Research Centre (HLRC) was set up in 1958 and now has facilities in Mumbai and Bangalore HLRC and the Global Technology Centers in India have over 200 highly
qualified scientists and technologists many with post-doctoral experience acquired in the US and Europe
If Hindustan Unilever straddles the Indian corporate world it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life
MARKETING - HINDUSTAN UNILEVER LIMITED
Marketing is the total system of business activities designed to plan price promote and distribute want satisfying commodities to target markets in order to achieve organizational goals This has two implications
Focus the entire system of business activities should be customer oriented Customerrsquos wants must be recognized and satisfied
Duration marketing should start with an idea about a want-satisfying product and should not end until the customerrsquos wants are completely satisfied
HUL ndash Hindustan Unilever Limited clearly formulates its marketing plans on these two implications The companyrsquos marketing is clearly in the MARKET ORIENTATION STAGE For with market orientation HUL identifies what its customers want and tailor all activities of the firm to satisfy those needs as efficiently as possible
How does HUL identify customerrsquos wants and make products virtually tailor made for them
The answer to the above question would definitely be the excellent customer relationship management HUL has established multi-dimensional connections with the customer
HUL uses LEVERCARE ndasha consumer connect program
Lever Care is project of bold ambition aimed at setting up a world-class
Consumer connect system to help consumers reach the company
and equally in future to help brands reach out to consumers
LEVERCARE- BUSINESS PROCESS
Feedback
1048708 To Capture Consumer insight on HULrsquos products and services
Eg consumer did not like Lux Provocateur black color
Query
1048708 to answer consumer queries on HULrsquos products and services
Eg if any product is available to remove pimple and pimple marks
Complaint
1048708 To address consumer complaints on HULrsquos products and services
Eg consumer bought Lux Body wash but within a week it became semi-solid mass
Others
1048708 to address any other type of consumer call on HULrsquos products and services not covered as above
Eg consumer had an idea which he wanted to share with us ndash he wanted HUL address
MASS CUSTOMIZATION HUL also very clearly follows mass customization- which is developing producing and delivering affordable products with enough variety and uniqueness than nearly every potential customer has what he or she wants Through mass customization there is proliferation of products- expansion of products
For example the variety of soaps offered by HUL
COORDINATED MARKETING ACTIVITES
QUALITY firms added quality as defined by customers as a key ingredient of their strategies and the success of these firms proved the importance of quality Thus improving quality became a priority for major organizations across the world and HUL is no different
Hindustan Unilever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates The company is committed to respond creatively and competitively to the changing needs and aspirations of our consumers through relentless pursuit of technological excellence innovation and quality management across our businesses and offer superior quality products and services that are appropriate to the various price points in the market as well as to our commitment to building shareholder value
The company recognizes that its employees are the primary source of success in its operations and is committed to training and providing them the necessary tools and techniques as well as empowering them to ensure broad base compliance of this policy in the organization at all levels The company is committed to fulfill its legal and statutory obligations and international standards of product safety and hygiene and will not knowingly sell product that is harmful to consumers or their belongings It will institute systems and measures to monitor compliance in order to meet its responsibilities to consumers
The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them The company is committed to extend its quality standards to its contract manufacturers key suppliers and service providers and by entering into alliances with them to jointly improve the quality of its products and services This policy is applicable to production from its own facilities as well as to production that is outsourced The company will periodically review this quality policy for its effectiveness and consistency with business objectives The company delegates authority and
responsibility for dissemination and implementation of this policy to each Business and Unit Head
HUL- VALUE CREATION
The customerrsquos perception of all the benefits of a product weighed against all the costs of acquiring and consuming of the product is its value As a customer of HUL products I can clearly understand what the customer value in the product
The benefits can be functional say for example
The brook bond red label tea the benefit could be the taste of the tea or something psychological (the freshness of the mind one feels after drinking the tea)
Value means much more to the buyer than the cost of the product and the perception of value caries among individuals
HUL Corporate Responsibility
HULrsquos corporate responsibility strategy seeks to address HULs most significant sustainability impacts of hygiene nutrition enhancement of livelihoods reduction of greenhouse gases and water footprint by integrating these objectives into our brands our people and our processes
~ Provided income-generating opportunities to 45000 Shakti entrepreneurs in rural areas across 15 states in 100000 villages through Project Shakti
~ Lifebuoy Swasthya Chetna has touched 12 crores people in more than 50000 villages across India since 2002
~ Pureit covers over 3 million households across India and provides pure drinking at water at a mere 33 paise per litre
Shakti Entrepreneur Programme
One in eight people on the planet lives in an Indian village Hindustan Unilevers Shakti Entrepreneurial Programme helps women in rural India set up small businesses as direct-to-consumer retailers The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for Unilever products in the large and fast-growing global market of low-spending consumers By 2010 the Shakti network aims to have reached 600 million consumers
Lifebuoy Swasthya Chetna
Lifebuoy Swasthya Chetna is a multiphase activity that works toward effecting hand washing behavior change among the rural communities it touches The central message of the campaign is
Visibly clean is not really clean
MARKETING MIX
The combination of a product where and when it is distributed how it is promoted and its price Together these four components of the strategy must satisfy the needs of the target markets and at the same time achieve the organizations marketing objectives
For example the marketing mix of surf- excel (a product of hul)
PRODUCT surf excel is derived from the word ldquosurfactantrdquo The brand surf excel is categorized into
Surf excel quick wash (converts hard water to soft water) Surf excel blue (color care variant) Surf excel matic Liquid and detergent (liquid form for gaining market share of revive and
ezee)
PRICE the pricing strategy of surf excel has always been in accordance with its competitors
ldquoPampGs move to slash detergent prices is ostensibly to get more consumers to experience its brands but the industry sees it primarily as a move to wrest the advantage from HLL in a sluggish marketrdquo
HLL has also dropped prices for Surf Excel and Surf Excel Blue Trade sources claims that a similar exercise is expected in the case of Rin as well
PROMOTION
first national detergent brand on television Commercials through internet and SMS Children festival Sales promotion through aggressive pricing Effective positioning
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
INTRODUCTION TO HUL-HINDUSTAN UNILEVER LIMITED
Hindustan Unilever Limited (HUL) is Indias largest Fast Moving Consumer Goods Company touching the lives of two out of three Indians with over 20 distinct categories in Home amp Personal Care Products and Foods amp Beverages The companyrsquos Turnover is Rs 17523 crores (for the financial year 2009 - 2010)
HUL is a subsidiary of Unilever one of the worldrsquos leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about euro40 billion in 2009 Unilever has about 52 shareholding in HUL
Hindustan Unilever was recently rated among the top four companies globally in the list of ldquoGlobal Top Companies for Leadersrdquo by a study sponsored by Hewitt Associates in partnership with Fortune magazine and the RBL Group The company was ranked number one in the Asia-Pacific region and in India
HUL is also one of the countrys largest exporters it has been recognized as a Golden Super Star Trading House by the Government of India
The mission that inspires HULs over 15000 employees including over 1300 managers is to add vitality to life HUL meets every day needs for nutrition hygiene and personal care with brands that help people feel good look good and get more out of life It is a mission HUL shares with its parent company Unilever which holds 5155 of the equity The rest of the shareholding is distributed among 380000 individual shareholders and financial institutions
HUL has traditionally been a company which incorporates latest technology in all its operations The Hindustan Unilever Research Centre (HLRC) was set up in 1958 and now has facilities in Mumbai and Bangalore HLRC and the Global Technology Centers in India have over 200 highly
qualified scientists and technologists many with post-doctoral experience acquired in the US and Europe
If Hindustan Unilever straddles the Indian corporate world it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life
MARKETING - HINDUSTAN UNILEVER LIMITED
Marketing is the total system of business activities designed to plan price promote and distribute want satisfying commodities to target markets in order to achieve organizational goals This has two implications
Focus the entire system of business activities should be customer oriented Customerrsquos wants must be recognized and satisfied
Duration marketing should start with an idea about a want-satisfying product and should not end until the customerrsquos wants are completely satisfied
HUL ndash Hindustan Unilever Limited clearly formulates its marketing plans on these two implications The companyrsquos marketing is clearly in the MARKET ORIENTATION STAGE For with market orientation HUL identifies what its customers want and tailor all activities of the firm to satisfy those needs as efficiently as possible
How does HUL identify customerrsquos wants and make products virtually tailor made for them
The answer to the above question would definitely be the excellent customer relationship management HUL has established multi-dimensional connections with the customer
HUL uses LEVERCARE ndasha consumer connect program
Lever Care is project of bold ambition aimed at setting up a world-class
Consumer connect system to help consumers reach the company
and equally in future to help brands reach out to consumers
LEVERCARE- BUSINESS PROCESS
Feedback
1048708 To Capture Consumer insight on HULrsquos products and services
Eg consumer did not like Lux Provocateur black color
Query
1048708 to answer consumer queries on HULrsquos products and services
Eg if any product is available to remove pimple and pimple marks
Complaint
1048708 To address consumer complaints on HULrsquos products and services
Eg consumer bought Lux Body wash but within a week it became semi-solid mass
Others
1048708 to address any other type of consumer call on HULrsquos products and services not covered as above
Eg consumer had an idea which he wanted to share with us ndash he wanted HUL address
MASS CUSTOMIZATION HUL also very clearly follows mass customization- which is developing producing and delivering affordable products with enough variety and uniqueness than nearly every potential customer has what he or she wants Through mass customization there is proliferation of products- expansion of products
For example the variety of soaps offered by HUL
COORDINATED MARKETING ACTIVITES
QUALITY firms added quality as defined by customers as a key ingredient of their strategies and the success of these firms proved the importance of quality Thus improving quality became a priority for major organizations across the world and HUL is no different
Hindustan Unilever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates The company is committed to respond creatively and competitively to the changing needs and aspirations of our consumers through relentless pursuit of technological excellence innovation and quality management across our businesses and offer superior quality products and services that are appropriate to the various price points in the market as well as to our commitment to building shareholder value
The company recognizes that its employees are the primary source of success in its operations and is committed to training and providing them the necessary tools and techniques as well as empowering them to ensure broad base compliance of this policy in the organization at all levels The company is committed to fulfill its legal and statutory obligations and international standards of product safety and hygiene and will not knowingly sell product that is harmful to consumers or their belongings It will institute systems and measures to monitor compliance in order to meet its responsibilities to consumers
The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them The company is committed to extend its quality standards to its contract manufacturers key suppliers and service providers and by entering into alliances with them to jointly improve the quality of its products and services This policy is applicable to production from its own facilities as well as to production that is outsourced The company will periodically review this quality policy for its effectiveness and consistency with business objectives The company delegates authority and
responsibility for dissemination and implementation of this policy to each Business and Unit Head
HUL- VALUE CREATION
The customerrsquos perception of all the benefits of a product weighed against all the costs of acquiring and consuming of the product is its value As a customer of HUL products I can clearly understand what the customer value in the product
The benefits can be functional say for example
The brook bond red label tea the benefit could be the taste of the tea or something psychological (the freshness of the mind one feels after drinking the tea)
Value means much more to the buyer than the cost of the product and the perception of value caries among individuals
HUL Corporate Responsibility
HULrsquos corporate responsibility strategy seeks to address HULs most significant sustainability impacts of hygiene nutrition enhancement of livelihoods reduction of greenhouse gases and water footprint by integrating these objectives into our brands our people and our processes
~ Provided income-generating opportunities to 45000 Shakti entrepreneurs in rural areas across 15 states in 100000 villages through Project Shakti
~ Lifebuoy Swasthya Chetna has touched 12 crores people in more than 50000 villages across India since 2002
~ Pureit covers over 3 million households across India and provides pure drinking at water at a mere 33 paise per litre
Shakti Entrepreneur Programme
One in eight people on the planet lives in an Indian village Hindustan Unilevers Shakti Entrepreneurial Programme helps women in rural India set up small businesses as direct-to-consumer retailers The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for Unilever products in the large and fast-growing global market of low-spending consumers By 2010 the Shakti network aims to have reached 600 million consumers
Lifebuoy Swasthya Chetna
Lifebuoy Swasthya Chetna is a multiphase activity that works toward effecting hand washing behavior change among the rural communities it touches The central message of the campaign is
Visibly clean is not really clean
MARKETING MIX
The combination of a product where and when it is distributed how it is promoted and its price Together these four components of the strategy must satisfy the needs of the target markets and at the same time achieve the organizations marketing objectives
For example the marketing mix of surf- excel (a product of hul)
PRODUCT surf excel is derived from the word ldquosurfactantrdquo The brand surf excel is categorized into
Surf excel quick wash (converts hard water to soft water) Surf excel blue (color care variant) Surf excel matic Liquid and detergent (liquid form for gaining market share of revive and
ezee)
PRICE the pricing strategy of surf excel has always been in accordance with its competitors
ldquoPampGs move to slash detergent prices is ostensibly to get more consumers to experience its brands but the industry sees it primarily as a move to wrest the advantage from HLL in a sluggish marketrdquo
HLL has also dropped prices for Surf Excel and Surf Excel Blue Trade sources claims that a similar exercise is expected in the case of Rin as well
PROMOTION
first national detergent brand on television Commercials through internet and SMS Children festival Sales promotion through aggressive pricing Effective positioning
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
qualified scientists and technologists many with post-doctoral experience acquired in the US and Europe
If Hindustan Unilever straddles the Indian corporate world it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life
MARKETING - HINDUSTAN UNILEVER LIMITED
Marketing is the total system of business activities designed to plan price promote and distribute want satisfying commodities to target markets in order to achieve organizational goals This has two implications
Focus the entire system of business activities should be customer oriented Customerrsquos wants must be recognized and satisfied
Duration marketing should start with an idea about a want-satisfying product and should not end until the customerrsquos wants are completely satisfied
HUL ndash Hindustan Unilever Limited clearly formulates its marketing plans on these two implications The companyrsquos marketing is clearly in the MARKET ORIENTATION STAGE For with market orientation HUL identifies what its customers want and tailor all activities of the firm to satisfy those needs as efficiently as possible
How does HUL identify customerrsquos wants and make products virtually tailor made for them
The answer to the above question would definitely be the excellent customer relationship management HUL has established multi-dimensional connections with the customer
HUL uses LEVERCARE ndasha consumer connect program
Lever Care is project of bold ambition aimed at setting up a world-class
Consumer connect system to help consumers reach the company
and equally in future to help brands reach out to consumers
LEVERCARE- BUSINESS PROCESS
Feedback
1048708 To Capture Consumer insight on HULrsquos products and services
Eg consumer did not like Lux Provocateur black color
Query
1048708 to answer consumer queries on HULrsquos products and services
Eg if any product is available to remove pimple and pimple marks
Complaint
1048708 To address consumer complaints on HULrsquos products and services
Eg consumer bought Lux Body wash but within a week it became semi-solid mass
Others
1048708 to address any other type of consumer call on HULrsquos products and services not covered as above
Eg consumer had an idea which he wanted to share with us ndash he wanted HUL address
MASS CUSTOMIZATION HUL also very clearly follows mass customization- which is developing producing and delivering affordable products with enough variety and uniqueness than nearly every potential customer has what he or she wants Through mass customization there is proliferation of products- expansion of products
For example the variety of soaps offered by HUL
COORDINATED MARKETING ACTIVITES
QUALITY firms added quality as defined by customers as a key ingredient of their strategies and the success of these firms proved the importance of quality Thus improving quality became a priority for major organizations across the world and HUL is no different
Hindustan Unilever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates The company is committed to respond creatively and competitively to the changing needs and aspirations of our consumers through relentless pursuit of technological excellence innovation and quality management across our businesses and offer superior quality products and services that are appropriate to the various price points in the market as well as to our commitment to building shareholder value
The company recognizes that its employees are the primary source of success in its operations and is committed to training and providing them the necessary tools and techniques as well as empowering them to ensure broad base compliance of this policy in the organization at all levels The company is committed to fulfill its legal and statutory obligations and international standards of product safety and hygiene and will not knowingly sell product that is harmful to consumers or their belongings It will institute systems and measures to monitor compliance in order to meet its responsibilities to consumers
The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them The company is committed to extend its quality standards to its contract manufacturers key suppliers and service providers and by entering into alliances with them to jointly improve the quality of its products and services This policy is applicable to production from its own facilities as well as to production that is outsourced The company will periodically review this quality policy for its effectiveness and consistency with business objectives The company delegates authority and
responsibility for dissemination and implementation of this policy to each Business and Unit Head
HUL- VALUE CREATION
The customerrsquos perception of all the benefits of a product weighed against all the costs of acquiring and consuming of the product is its value As a customer of HUL products I can clearly understand what the customer value in the product
The benefits can be functional say for example
The brook bond red label tea the benefit could be the taste of the tea or something psychological (the freshness of the mind one feels after drinking the tea)
Value means much more to the buyer than the cost of the product and the perception of value caries among individuals
HUL Corporate Responsibility
HULrsquos corporate responsibility strategy seeks to address HULs most significant sustainability impacts of hygiene nutrition enhancement of livelihoods reduction of greenhouse gases and water footprint by integrating these objectives into our brands our people and our processes
~ Provided income-generating opportunities to 45000 Shakti entrepreneurs in rural areas across 15 states in 100000 villages through Project Shakti
~ Lifebuoy Swasthya Chetna has touched 12 crores people in more than 50000 villages across India since 2002
~ Pureit covers over 3 million households across India and provides pure drinking at water at a mere 33 paise per litre
Shakti Entrepreneur Programme
One in eight people on the planet lives in an Indian village Hindustan Unilevers Shakti Entrepreneurial Programme helps women in rural India set up small businesses as direct-to-consumer retailers The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for Unilever products in the large and fast-growing global market of low-spending consumers By 2010 the Shakti network aims to have reached 600 million consumers
Lifebuoy Swasthya Chetna
Lifebuoy Swasthya Chetna is a multiphase activity that works toward effecting hand washing behavior change among the rural communities it touches The central message of the campaign is
Visibly clean is not really clean
MARKETING MIX
The combination of a product where and when it is distributed how it is promoted and its price Together these four components of the strategy must satisfy the needs of the target markets and at the same time achieve the organizations marketing objectives
For example the marketing mix of surf- excel (a product of hul)
PRODUCT surf excel is derived from the word ldquosurfactantrdquo The brand surf excel is categorized into
Surf excel quick wash (converts hard water to soft water) Surf excel blue (color care variant) Surf excel matic Liquid and detergent (liquid form for gaining market share of revive and
ezee)
PRICE the pricing strategy of surf excel has always been in accordance with its competitors
ldquoPampGs move to slash detergent prices is ostensibly to get more consumers to experience its brands but the industry sees it primarily as a move to wrest the advantage from HLL in a sluggish marketrdquo
HLL has also dropped prices for Surf Excel and Surf Excel Blue Trade sources claims that a similar exercise is expected in the case of Rin as well
PROMOTION
first national detergent brand on television Commercials through internet and SMS Children festival Sales promotion through aggressive pricing Effective positioning
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
How does HUL identify customerrsquos wants and make products virtually tailor made for them
The answer to the above question would definitely be the excellent customer relationship management HUL has established multi-dimensional connections with the customer
HUL uses LEVERCARE ndasha consumer connect program
Lever Care is project of bold ambition aimed at setting up a world-class
Consumer connect system to help consumers reach the company
and equally in future to help brands reach out to consumers
LEVERCARE- BUSINESS PROCESS
Feedback
1048708 To Capture Consumer insight on HULrsquos products and services
Eg consumer did not like Lux Provocateur black color
Query
1048708 to answer consumer queries on HULrsquos products and services
Eg if any product is available to remove pimple and pimple marks
Complaint
1048708 To address consumer complaints on HULrsquos products and services
Eg consumer bought Lux Body wash but within a week it became semi-solid mass
Others
1048708 to address any other type of consumer call on HULrsquos products and services not covered as above
Eg consumer had an idea which he wanted to share with us ndash he wanted HUL address
MASS CUSTOMIZATION HUL also very clearly follows mass customization- which is developing producing and delivering affordable products with enough variety and uniqueness than nearly every potential customer has what he or she wants Through mass customization there is proliferation of products- expansion of products
For example the variety of soaps offered by HUL
COORDINATED MARKETING ACTIVITES
QUALITY firms added quality as defined by customers as a key ingredient of their strategies and the success of these firms proved the importance of quality Thus improving quality became a priority for major organizations across the world and HUL is no different
Hindustan Unilever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates The company is committed to respond creatively and competitively to the changing needs and aspirations of our consumers through relentless pursuit of technological excellence innovation and quality management across our businesses and offer superior quality products and services that are appropriate to the various price points in the market as well as to our commitment to building shareholder value
The company recognizes that its employees are the primary source of success in its operations and is committed to training and providing them the necessary tools and techniques as well as empowering them to ensure broad base compliance of this policy in the organization at all levels The company is committed to fulfill its legal and statutory obligations and international standards of product safety and hygiene and will not knowingly sell product that is harmful to consumers or their belongings It will institute systems and measures to monitor compliance in order to meet its responsibilities to consumers
The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them The company is committed to extend its quality standards to its contract manufacturers key suppliers and service providers and by entering into alliances with them to jointly improve the quality of its products and services This policy is applicable to production from its own facilities as well as to production that is outsourced The company will periodically review this quality policy for its effectiveness and consistency with business objectives The company delegates authority and
responsibility for dissemination and implementation of this policy to each Business and Unit Head
HUL- VALUE CREATION
The customerrsquos perception of all the benefits of a product weighed against all the costs of acquiring and consuming of the product is its value As a customer of HUL products I can clearly understand what the customer value in the product
The benefits can be functional say for example
The brook bond red label tea the benefit could be the taste of the tea or something psychological (the freshness of the mind one feels after drinking the tea)
Value means much more to the buyer than the cost of the product and the perception of value caries among individuals
HUL Corporate Responsibility
HULrsquos corporate responsibility strategy seeks to address HULs most significant sustainability impacts of hygiene nutrition enhancement of livelihoods reduction of greenhouse gases and water footprint by integrating these objectives into our brands our people and our processes
~ Provided income-generating opportunities to 45000 Shakti entrepreneurs in rural areas across 15 states in 100000 villages through Project Shakti
~ Lifebuoy Swasthya Chetna has touched 12 crores people in more than 50000 villages across India since 2002
~ Pureit covers over 3 million households across India and provides pure drinking at water at a mere 33 paise per litre
Shakti Entrepreneur Programme
One in eight people on the planet lives in an Indian village Hindustan Unilevers Shakti Entrepreneurial Programme helps women in rural India set up small businesses as direct-to-consumer retailers The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for Unilever products in the large and fast-growing global market of low-spending consumers By 2010 the Shakti network aims to have reached 600 million consumers
Lifebuoy Swasthya Chetna
Lifebuoy Swasthya Chetna is a multiphase activity that works toward effecting hand washing behavior change among the rural communities it touches The central message of the campaign is
Visibly clean is not really clean
MARKETING MIX
The combination of a product where and when it is distributed how it is promoted and its price Together these four components of the strategy must satisfy the needs of the target markets and at the same time achieve the organizations marketing objectives
For example the marketing mix of surf- excel (a product of hul)
PRODUCT surf excel is derived from the word ldquosurfactantrdquo The brand surf excel is categorized into
Surf excel quick wash (converts hard water to soft water) Surf excel blue (color care variant) Surf excel matic Liquid and detergent (liquid form for gaining market share of revive and
ezee)
PRICE the pricing strategy of surf excel has always been in accordance with its competitors
ldquoPampGs move to slash detergent prices is ostensibly to get more consumers to experience its brands but the industry sees it primarily as a move to wrest the advantage from HLL in a sluggish marketrdquo
HLL has also dropped prices for Surf Excel and Surf Excel Blue Trade sources claims that a similar exercise is expected in the case of Rin as well
PROMOTION
first national detergent brand on television Commercials through internet and SMS Children festival Sales promotion through aggressive pricing Effective positioning
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Complaint
1048708 To address consumer complaints on HULrsquos products and services
Eg consumer bought Lux Body wash but within a week it became semi-solid mass
Others
1048708 to address any other type of consumer call on HULrsquos products and services not covered as above
Eg consumer had an idea which he wanted to share with us ndash he wanted HUL address
MASS CUSTOMIZATION HUL also very clearly follows mass customization- which is developing producing and delivering affordable products with enough variety and uniqueness than nearly every potential customer has what he or she wants Through mass customization there is proliferation of products- expansion of products
For example the variety of soaps offered by HUL
COORDINATED MARKETING ACTIVITES
QUALITY firms added quality as defined by customers as a key ingredient of their strategies and the success of these firms proved the importance of quality Thus improving quality became a priority for major organizations across the world and HUL is no different
Hindustan Unilever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates The company is committed to respond creatively and competitively to the changing needs and aspirations of our consumers through relentless pursuit of technological excellence innovation and quality management across our businesses and offer superior quality products and services that are appropriate to the various price points in the market as well as to our commitment to building shareholder value
The company recognizes that its employees are the primary source of success in its operations and is committed to training and providing them the necessary tools and techniques as well as empowering them to ensure broad base compliance of this policy in the organization at all levels The company is committed to fulfill its legal and statutory obligations and international standards of product safety and hygiene and will not knowingly sell product that is harmful to consumers or their belongings It will institute systems and measures to monitor compliance in order to meet its responsibilities to consumers
The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them The company is committed to extend its quality standards to its contract manufacturers key suppliers and service providers and by entering into alliances with them to jointly improve the quality of its products and services This policy is applicable to production from its own facilities as well as to production that is outsourced The company will periodically review this quality policy for its effectiveness and consistency with business objectives The company delegates authority and
responsibility for dissemination and implementation of this policy to each Business and Unit Head
HUL- VALUE CREATION
The customerrsquos perception of all the benefits of a product weighed against all the costs of acquiring and consuming of the product is its value As a customer of HUL products I can clearly understand what the customer value in the product
The benefits can be functional say for example
The brook bond red label tea the benefit could be the taste of the tea or something psychological (the freshness of the mind one feels after drinking the tea)
Value means much more to the buyer than the cost of the product and the perception of value caries among individuals
HUL Corporate Responsibility
HULrsquos corporate responsibility strategy seeks to address HULs most significant sustainability impacts of hygiene nutrition enhancement of livelihoods reduction of greenhouse gases and water footprint by integrating these objectives into our brands our people and our processes
~ Provided income-generating opportunities to 45000 Shakti entrepreneurs in rural areas across 15 states in 100000 villages through Project Shakti
~ Lifebuoy Swasthya Chetna has touched 12 crores people in more than 50000 villages across India since 2002
~ Pureit covers over 3 million households across India and provides pure drinking at water at a mere 33 paise per litre
Shakti Entrepreneur Programme
One in eight people on the planet lives in an Indian village Hindustan Unilevers Shakti Entrepreneurial Programme helps women in rural India set up small businesses as direct-to-consumer retailers The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for Unilever products in the large and fast-growing global market of low-spending consumers By 2010 the Shakti network aims to have reached 600 million consumers
Lifebuoy Swasthya Chetna
Lifebuoy Swasthya Chetna is a multiphase activity that works toward effecting hand washing behavior change among the rural communities it touches The central message of the campaign is
Visibly clean is not really clean
MARKETING MIX
The combination of a product where and when it is distributed how it is promoted and its price Together these four components of the strategy must satisfy the needs of the target markets and at the same time achieve the organizations marketing objectives
For example the marketing mix of surf- excel (a product of hul)
PRODUCT surf excel is derived from the word ldquosurfactantrdquo The brand surf excel is categorized into
Surf excel quick wash (converts hard water to soft water) Surf excel blue (color care variant) Surf excel matic Liquid and detergent (liquid form for gaining market share of revive and
ezee)
PRICE the pricing strategy of surf excel has always been in accordance with its competitors
ldquoPampGs move to slash detergent prices is ostensibly to get more consumers to experience its brands but the industry sees it primarily as a move to wrest the advantage from HLL in a sluggish marketrdquo
HLL has also dropped prices for Surf Excel and Surf Excel Blue Trade sources claims that a similar exercise is expected in the case of Rin as well
PROMOTION
first national detergent brand on television Commercials through internet and SMS Children festival Sales promotion through aggressive pricing Effective positioning
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
COORDINATED MARKETING ACTIVITES
QUALITY firms added quality as defined by customers as a key ingredient of their strategies and the success of these firms proved the importance of quality Thus improving quality became a priority for major organizations across the world and HUL is no different
Hindustan Unilever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates The company is committed to respond creatively and competitively to the changing needs and aspirations of our consumers through relentless pursuit of technological excellence innovation and quality management across our businesses and offer superior quality products and services that are appropriate to the various price points in the market as well as to our commitment to building shareholder value
The company recognizes that its employees are the primary source of success in its operations and is committed to training and providing them the necessary tools and techniques as well as empowering them to ensure broad base compliance of this policy in the organization at all levels The company is committed to fulfill its legal and statutory obligations and international standards of product safety and hygiene and will not knowingly sell product that is harmful to consumers or their belongings It will institute systems and measures to monitor compliance in order to meet its responsibilities to consumers
The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them The company is committed to extend its quality standards to its contract manufacturers key suppliers and service providers and by entering into alliances with them to jointly improve the quality of its products and services This policy is applicable to production from its own facilities as well as to production that is outsourced The company will periodically review this quality policy for its effectiveness and consistency with business objectives The company delegates authority and
responsibility for dissemination and implementation of this policy to each Business and Unit Head
HUL- VALUE CREATION
The customerrsquos perception of all the benefits of a product weighed against all the costs of acquiring and consuming of the product is its value As a customer of HUL products I can clearly understand what the customer value in the product
The benefits can be functional say for example
The brook bond red label tea the benefit could be the taste of the tea or something psychological (the freshness of the mind one feels after drinking the tea)
Value means much more to the buyer than the cost of the product and the perception of value caries among individuals
HUL Corporate Responsibility
HULrsquos corporate responsibility strategy seeks to address HULs most significant sustainability impacts of hygiene nutrition enhancement of livelihoods reduction of greenhouse gases and water footprint by integrating these objectives into our brands our people and our processes
~ Provided income-generating opportunities to 45000 Shakti entrepreneurs in rural areas across 15 states in 100000 villages through Project Shakti
~ Lifebuoy Swasthya Chetna has touched 12 crores people in more than 50000 villages across India since 2002
~ Pureit covers over 3 million households across India and provides pure drinking at water at a mere 33 paise per litre
Shakti Entrepreneur Programme
One in eight people on the planet lives in an Indian village Hindustan Unilevers Shakti Entrepreneurial Programme helps women in rural India set up small businesses as direct-to-consumer retailers The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for Unilever products in the large and fast-growing global market of low-spending consumers By 2010 the Shakti network aims to have reached 600 million consumers
Lifebuoy Swasthya Chetna
Lifebuoy Swasthya Chetna is a multiphase activity that works toward effecting hand washing behavior change among the rural communities it touches The central message of the campaign is
Visibly clean is not really clean
MARKETING MIX
The combination of a product where and when it is distributed how it is promoted and its price Together these four components of the strategy must satisfy the needs of the target markets and at the same time achieve the organizations marketing objectives
For example the marketing mix of surf- excel (a product of hul)
PRODUCT surf excel is derived from the word ldquosurfactantrdquo The brand surf excel is categorized into
Surf excel quick wash (converts hard water to soft water) Surf excel blue (color care variant) Surf excel matic Liquid and detergent (liquid form for gaining market share of revive and
ezee)
PRICE the pricing strategy of surf excel has always been in accordance with its competitors
ldquoPampGs move to slash detergent prices is ostensibly to get more consumers to experience its brands but the industry sees it primarily as a move to wrest the advantage from HLL in a sluggish marketrdquo
HLL has also dropped prices for Surf Excel and Surf Excel Blue Trade sources claims that a similar exercise is expected in the case of Rin as well
PROMOTION
first national detergent brand on television Commercials through internet and SMS Children festival Sales promotion through aggressive pricing Effective positioning
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
responsibility for dissemination and implementation of this policy to each Business and Unit Head
HUL- VALUE CREATION
The customerrsquos perception of all the benefits of a product weighed against all the costs of acquiring and consuming of the product is its value As a customer of HUL products I can clearly understand what the customer value in the product
The benefits can be functional say for example
The brook bond red label tea the benefit could be the taste of the tea or something psychological (the freshness of the mind one feels after drinking the tea)
Value means much more to the buyer than the cost of the product and the perception of value caries among individuals
HUL Corporate Responsibility
HULrsquos corporate responsibility strategy seeks to address HULs most significant sustainability impacts of hygiene nutrition enhancement of livelihoods reduction of greenhouse gases and water footprint by integrating these objectives into our brands our people and our processes
~ Provided income-generating opportunities to 45000 Shakti entrepreneurs in rural areas across 15 states in 100000 villages through Project Shakti
~ Lifebuoy Swasthya Chetna has touched 12 crores people in more than 50000 villages across India since 2002
~ Pureit covers over 3 million households across India and provides pure drinking at water at a mere 33 paise per litre
Shakti Entrepreneur Programme
One in eight people on the planet lives in an Indian village Hindustan Unilevers Shakti Entrepreneurial Programme helps women in rural India set up small businesses as direct-to-consumer retailers The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for Unilever products in the large and fast-growing global market of low-spending consumers By 2010 the Shakti network aims to have reached 600 million consumers
Lifebuoy Swasthya Chetna
Lifebuoy Swasthya Chetna is a multiphase activity that works toward effecting hand washing behavior change among the rural communities it touches The central message of the campaign is
Visibly clean is not really clean
MARKETING MIX
The combination of a product where and when it is distributed how it is promoted and its price Together these four components of the strategy must satisfy the needs of the target markets and at the same time achieve the organizations marketing objectives
For example the marketing mix of surf- excel (a product of hul)
PRODUCT surf excel is derived from the word ldquosurfactantrdquo The brand surf excel is categorized into
Surf excel quick wash (converts hard water to soft water) Surf excel blue (color care variant) Surf excel matic Liquid and detergent (liquid form for gaining market share of revive and
ezee)
PRICE the pricing strategy of surf excel has always been in accordance with its competitors
ldquoPampGs move to slash detergent prices is ostensibly to get more consumers to experience its brands but the industry sees it primarily as a move to wrest the advantage from HLL in a sluggish marketrdquo
HLL has also dropped prices for Surf Excel and Surf Excel Blue Trade sources claims that a similar exercise is expected in the case of Rin as well
PROMOTION
first national detergent brand on television Commercials through internet and SMS Children festival Sales promotion through aggressive pricing Effective positioning
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
HUL Corporate Responsibility
HULrsquos corporate responsibility strategy seeks to address HULs most significant sustainability impacts of hygiene nutrition enhancement of livelihoods reduction of greenhouse gases and water footprint by integrating these objectives into our brands our people and our processes
~ Provided income-generating opportunities to 45000 Shakti entrepreneurs in rural areas across 15 states in 100000 villages through Project Shakti
~ Lifebuoy Swasthya Chetna has touched 12 crores people in more than 50000 villages across India since 2002
~ Pureit covers over 3 million households across India and provides pure drinking at water at a mere 33 paise per litre
Shakti Entrepreneur Programme
One in eight people on the planet lives in an Indian village Hindustan Unilevers Shakti Entrepreneurial Programme helps women in rural India set up small businesses as direct-to-consumer retailers The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for Unilever products in the large and fast-growing global market of low-spending consumers By 2010 the Shakti network aims to have reached 600 million consumers
Lifebuoy Swasthya Chetna
Lifebuoy Swasthya Chetna is a multiphase activity that works toward effecting hand washing behavior change among the rural communities it touches The central message of the campaign is
Visibly clean is not really clean
MARKETING MIX
The combination of a product where and when it is distributed how it is promoted and its price Together these four components of the strategy must satisfy the needs of the target markets and at the same time achieve the organizations marketing objectives
For example the marketing mix of surf- excel (a product of hul)
PRODUCT surf excel is derived from the word ldquosurfactantrdquo The brand surf excel is categorized into
Surf excel quick wash (converts hard water to soft water) Surf excel blue (color care variant) Surf excel matic Liquid and detergent (liquid form for gaining market share of revive and
ezee)
PRICE the pricing strategy of surf excel has always been in accordance with its competitors
ldquoPampGs move to slash detergent prices is ostensibly to get more consumers to experience its brands but the industry sees it primarily as a move to wrest the advantage from HLL in a sluggish marketrdquo
HLL has also dropped prices for Surf Excel and Surf Excel Blue Trade sources claims that a similar exercise is expected in the case of Rin as well
PROMOTION
first national detergent brand on television Commercials through internet and SMS Children festival Sales promotion through aggressive pricing Effective positioning
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Shakti Entrepreneur Programme
One in eight people on the planet lives in an Indian village Hindustan Unilevers Shakti Entrepreneurial Programme helps women in rural India set up small businesses as direct-to-consumer retailers The scheme equips women with business skills and a way out of poverty as well as creating a crucial new distribution channel for Unilever products in the large and fast-growing global market of low-spending consumers By 2010 the Shakti network aims to have reached 600 million consumers
Lifebuoy Swasthya Chetna
Lifebuoy Swasthya Chetna is a multiphase activity that works toward effecting hand washing behavior change among the rural communities it touches The central message of the campaign is
Visibly clean is not really clean
MARKETING MIX
The combination of a product where and when it is distributed how it is promoted and its price Together these four components of the strategy must satisfy the needs of the target markets and at the same time achieve the organizations marketing objectives
For example the marketing mix of surf- excel (a product of hul)
PRODUCT surf excel is derived from the word ldquosurfactantrdquo The brand surf excel is categorized into
Surf excel quick wash (converts hard water to soft water) Surf excel blue (color care variant) Surf excel matic Liquid and detergent (liquid form for gaining market share of revive and
ezee)
PRICE the pricing strategy of surf excel has always been in accordance with its competitors
ldquoPampGs move to slash detergent prices is ostensibly to get more consumers to experience its brands but the industry sees it primarily as a move to wrest the advantage from HLL in a sluggish marketrdquo
HLL has also dropped prices for Surf Excel and Surf Excel Blue Trade sources claims that a similar exercise is expected in the case of Rin as well
PROMOTION
first national detergent brand on television Commercials through internet and SMS Children festival Sales promotion through aggressive pricing Effective positioning
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
MARKETING MIX
The combination of a product where and when it is distributed how it is promoted and its price Together these four components of the strategy must satisfy the needs of the target markets and at the same time achieve the organizations marketing objectives
For example the marketing mix of surf- excel (a product of hul)
PRODUCT surf excel is derived from the word ldquosurfactantrdquo The brand surf excel is categorized into
Surf excel quick wash (converts hard water to soft water) Surf excel blue (color care variant) Surf excel matic Liquid and detergent (liquid form for gaining market share of revive and
ezee)
PRICE the pricing strategy of surf excel has always been in accordance with its competitors
ldquoPampGs move to slash detergent prices is ostensibly to get more consumers to experience its brands but the industry sees it primarily as a move to wrest the advantage from HLL in a sluggish marketrdquo
HLL has also dropped prices for Surf Excel and Surf Excel Blue Trade sources claims that a similar exercise is expected in the case of Rin as well
PROMOTION
first national detergent brand on television Commercials through internet and SMS Children festival Sales promotion through aggressive pricing Effective positioning
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
ldquoPampGs move to slash detergent prices is ostensibly to get more consumers to experience its brands but the industry sees it primarily as a move to wrest the advantage from HLL in a sluggish marketrdquo
HLL has also dropped prices for Surf Excel and Surf Excel Blue Trade sources claims that a similar exercise is expected in the case of Rin as well
PROMOTION
first national detergent brand on television Commercials through internet and SMS Children festival Sales promotion through aggressive pricing Effective positioning
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
DISTRIBUTION HUL distribution network- key strength which helps the product to reach out across the length and width of this vast country
Direct coverage in over one million retail outlets 7000 stockiest 2000+ suppliers and associates
CREATING UTILTY
The want satisfying power of a product is utility and it comes in many forms It is through marketing that much of the productrsquos utility is created
Kinds of utility
Form utility the physical or chemical changes that make the product more valuable Marketing contributes to the decision of the size style and color Example the different forms the surf excel detergent is made available to the consumers (Bar powder liquid)
Place utility product is readily accessible to potential customersThe distribution network of HUL creates place utility by making available the product across the country for potential customers
Time utility having a product available when you want it
Information utility informing prospective buyers that a product exists The promotion strategies of HUL create information utility by promoting their product and creating awareness among people
Image utility a special type of information utility The emotional or the psychological value a person attaches to the brand or a product because of its reputation and social standing For example the emotional value one attacheacutes in purchasing Dove though newer products have entered the shampoo market
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Possession utility created when customer buys the product That is ownership is transferred to the buyer
THE MARKETING ENVIRONMENT
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Environmental monitoring- also called environmental scanning- is the process of (1) gathering information regarding external environment (2) analyzing it (3) forecasting the impact of whatever trend the analysis suggests
An organization usually works in an external environment it cannot control at the same time marketing and non marketing resources exist within the organization that can generally be controlled by the executives
There are two levels of external forces
Macro influences (so called as they affect all the firms) Micro influences (so called because they affect a particular firm)
We can understand better by taking the example of the marketing environment of soaps
The soap market in the past was targeted at the lsquomass marketrsquo- soap for all but today the category has been segmented creatively at different levels All the major players have tried to create a niche market within the mass market to grow profitably
The present market state a clear leader in Hindustan unilever limited However competition is getting more intense as more and more manufactures enter the market even the Indian consumer has become more discerning than ever before
EXTERNAL MACROENVIRONMENT
External forces have considerable influence on any marketing opportunities and activities They are usually inter related and are largely uncontrollable by the management
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
DEMOGRAPHICS
Refers to the characteristics of the population including such factors as size distribution and growth Taking the example of soap market
India is a vast country of 1030 million people Household penetration of soaps is at 98 People belonging to different income groups buy different brands of soaps Rural consumers in India are 70 of the population As the rural demand is growing more and more soap brands launch their soap in discount segment to attract the consumers of lower socio economic levels
ECONOMIC CONDITIONS
Economic environment has the significant force that affects the marketing activities of just about any organization The traditional business cycle goes through four stages- prosperity recession depression and recovery Marketing executives at HUL understand which stage of business cycle the economy is currently in as the companyrsquos marketing program usually must be changed from one stage of business cycle to another
COMPETITION
A companyrsquos competitive environment obviously is a major influence on its marketing programs The firm generally faces three types of competition
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Brand competition comes from marketers of directly similar products For example the competitor brands for HUL soaps are santoor savlon margo cinthol
Substitute goods products that satisfy same need For example dermasoft soap substitute may provide competition to HUL soaps
Every company every company is a rival to consumerrsquos limited buying power
FOCUS ON ENVIRONMENTAL SAFETY
Soap manufacturers are increasingly trying to take care of various environmental concerns Fringe cases of not adhering to norms of production in terms of pollution have surfaced With the government tightening the grip on this issue focus on environmental safety has become higher than ever
For example let us take the case of Hindustan Unilever Limited
Safety amp environmental assurance centre
Safety is an essential element of a successful and sustainable business We take our responsibility to protect our consumers our employees and the environment we live in very seriously
Safety comes first
Our dedicated Safety amp Environmental Assurance Centre plays a central role in providing independent assurance and support for our products and processes Safety decisions are made independently of commercial considerations
SOCIAL AND CULTURAL FACTORS
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
The task of marketing executives is becoming more complex because our socio cultural patterns- lifestyles values and beliefs- are changing more quickly than they used to
Taking the soap industry as an example
North India pink colored soaps having floral profiles Here the fragrance preference is for more sophisticated profiles which reflect their lifestyle
West exhibit preferences for strong impactful fragrances and somewhat harsher profiles compared to the north
East not a big soap market hence no preference skews
South the skew is towards specific soap segments like herbal ayurvedic profiles and also sandalwood profiles Do not exhibit brand loyalty hence potential market for FMCG companies to launch their new brands
POLITICAL AND LEGAL FORCES
Every companyrsquos conduct is influenced a great deal by the political and legal processes in our society Like the Indian government has abolished licensing for almost all food and agro-processing industries except alcohol cane sugar hydrogenated fats etc This has lead to boom in FMCG market through market expansion and adequate product opportunities Such boom may give competition to the firms in the FMCG market like HUL
EXTERNAL MICROENVIRONMENT
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Three additional forces are external to an organization and affect its marketing activities These are firms markets suppliers and marketing intermediaries They represent micro environmental forces for the company
THE MARKET
People or organization with needs to satisfy money to spend and willingness to spend it is defined as a market HUL needs to identify what is its market how to reach it and serve it profitably and in a socially responsible manner
SUPPLIERS
People or firm that supply goods and services are required by the producer to make what it sells are critical to marketing success Hence suppliers form a vital part of the marketing environment HUL needs to care of its relationships with its suppliers as it is one way of assuring quality and price of the goods it produces An increase in raw material will have an effect on the marketing mix This happened some time back when the prices of vegetable oils a prime component in making of soap sky rocketed due to the diversion of oils for the production of bio- fuel It had a direct impact on the cost of production on all soaps in sub categories
MARKETING INTERMEDIARIES
Independent business organization that directly aid with the flow of goods and services between a marketing organization and its market are known as marketing intermediaries There are two types (1) the firms we call middlemen- wholesalers and retailers (2) various facilitating organizations- transportation and warehousing HUL has a very strong distribution network which is evident from its reach 84 outlets in India sell HUL soaps and the shelf availability is 63 million 80 of all Indian households get to use HUL products
CONSUMER MARKETS AND BUYING BEHAVIOR
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
CONSUMER MARKET
Ultimate consumers buy goods and services for their own personal or household use Like I am an ultimate consumer for HUL products- say dove
CONSUMER DEMOGRAPHICS
Demographics are the vital statistics that describe a population Marketers make use of variety of demographic characteristics including age gender family cycle education income and ethnicity
Family life cycle family life cycle stages the various forms the families can take over time are major determinants of behavior As families with children spend their income on different commodities than families without children
CONSUMER DECISION MAKING
The mix of people in the market is constantly changing it is difficult to anticipate what marketing program will work Another challenge is to
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
understand how consumers make decisions There are a series of logical stages a consumer goes through before arriving at a decision
Consumer buying decision process
Need recognition the consumer is moved to action by a desire or need Say I am moved to action by the need to buy soap
Identification of alternatives the consumer identifies alternative products and brands and collects information about them Like to buy the soap I consider various options dove dettol santoor pears Lux Etc
Evaluation of alternatives the consumer weighs the pros and cons of the alternatives identified Taking the above example I should check whether I need for moisturizing extra hygiene clear skin or fragrance
Decisions the consumer decides to buy or not to buy and makes other decisions related to the purchase I have to decide which soap I need and make a decision to buy it or not
Post purchase behavior the consumers seek reassurance that the choice made was the correct one Suppose I chose to buy Lux I need to be reassured that the choice made was the right one or wrong
Level of involvement
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
It is a significant factor influencing how consumer decisions are made is the level of involvement ndash reflected in the amount of effort expended in satisfying the need
The notion of involvement raises two important marketing issues loyalty and impulse purchases
Loyalty it exists when a consumer based on past experience is sufficiently satisfied with a particular brand or retailer that he or she buys that brand or from that retailer when the need arises without considering other alternatives
Impulse buying purchasing with little or no advance planning is also form of low involvement decision making Self service open display retailing (like the picture below) has conditioned shoppers to do more impulse buying Marketing researchers have found that an increasingly large proportion of purchases are unplanned Because of the growth of this type of low involvement purchasing retailers must place greater emphasis on promotional programs such as in store signage and videos demonstrating product benefits They must also make displays and packages appealing as they serve as silent sales people
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Post purchase cognitive dissonance
The state of anxiety brought on by the difficulty in choosing from among desirable alternatives It occurs when each of the alternatives seriously considered by the consumers has both attractive and unattractive features Considering the picture below even for purchasing a bottle of shampoo the consumer is spoilt for choice So constant reassurance is required to make him feel that the choice made by him is right
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
FACTORS INFLUENCING CONSUMER DECISION MAKING PROCESS
Information and purchase decisions
Purchase decisions require information there are two types of buying information- the commercial environment and the social environment The commercial environment consists of all marketing organizations and individuals that attempt to communicate with the consumers It includes manufacturers retailers advertisers and sales people whenever any of them are engaged in efforts to inform and persuade
The social information environment is comprised of family friends and acquaintances who directly or indirectly provide information about products
Chat rooms on the internet have become popular places for consumers with similar interests to gather and exchange information
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
SOCIAL INFLUENCES the consumers buying decision process is affected by the social forces that surround us
Culture a set of symbols and artifacts created by the society and handed down from generations to generations as determinants and regulators of behavior Marketing be executives have to be alert to these changes so that they can adjust their planning to be in step with or little ahead of time
The brands are communicated to the consumers according to culture of the country How a consumer across the culture different from each other Can there be an extension of consumer behavior along with a product or services of one country to another country How consumers in one culture secure exposure to the goods of other people living in other culture is an important part of consumer behavior The question arises that how marketers mingle these cultures together and manage it for longer duration of times
The marketers introduce the new products and services to the market and they try to exploit the exposure gained by the new culture The consumers also gather the taste through different measures and gather different cultural view This is known as culture transfer When consumers are making purchase decisions they may take in to consideration the culture of their country Culture becomes a criterion of evaluation for consumers for deciding various purchase decision The purchasers have an attitude for different products belong to the different countries
Social class ranking within the society determined by the members of the society it exists virtually in all societies and peoplersquos buying behavior is often strongly influenced by the class to which they belong to or to which they aspire
Marketers recognize that there are substantial differences among classes with respect to buying behavior and because of this diversity different social class are likely to respond differently to a sellers marketing program Thus it may be necessary to design marketing programs tailored to specific classes
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Reference groups groups of people who influence a personrsquos attitude values and behavior Each group in a society develops it own standards of behavior that then serve as guide references for the members There are groups we aspire to join and groups we admire even though membership may be impossible
Advertisers usually rely on reference group influence when they use celebrity spokesperson Professional athletes musicians actors and others in public eye can influence people who would like to be associated with them in some way
PSYCOLOGICAL FACTORS
Personality the psychoanalytic theory of personality by Sigmund Freud explains that we have two concepts Actual self concept or self image which means the way we see ourselves Ideal self concept the way you want to be seen or would like to see yourself
Like for example if I see myself as beauty conscious then perhaps I would purchase lux If I want to show myself as hygiene conscious I would choose life boy
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
MARKET SEGMENTATION TARGETING AND POSITIONING
There are a group of customers within the same general market market segments As a result the firm must decide which segment or segments to pursue a strategy called target marketing for a targeted segment the firm then moves to establish a position in minds of its members through design and implementation of marketing mix
Say for example we try to establish the market segmentation of sunsilk
There are various ways of segmenting a consumer base however for sunsilk
Psychographic segmentation
Hul can divide its market on the basis of the psychographic segmentation- characteristics of population It divides its market on the basis of benefits desired and usage rate As all sunsilk variants have been formulated especially keeping in view the consumer hair care needs so as to provide the consumer with a complete range for all hair types
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
TARGET MARKET A specific market segment on which the seller focuses entire marketing efforts The main target market of sunsilk is females between the ages group 16-40 belonging to the middle amp lower income classes
POSITIONING OF SUNSILK
The goal of Unilever was to position Sunsilk as a brand that provides solutions to hair problems faced by women The brand was advertised through different media including television print and online Innovative campaigns such as Hairapy and Life Cant Wait were launched by Unilever to attract women towards the brand
COMPETITIVE STRATEGIES FOR SUNSILK
General Strategy
Flank Attack Sunsilk can follow segmental strategy In market Head amp shoulders targeting mainly high and middle class people but big portion in lower class consumer could not adopt their product So Sunsilk can targeting the lower class who have lower income and launch new product at a lower price
Frontal Attack Sunsilk can launch new shampoo combining conditioner anti- dandruff and shinning in a one product as follow as Head amp Shoulders
Bypass Attack Sunsilk can introduce anti-dandruff shampoo and provide an extra conditioner in a package
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
MARKETING RESEARCH AND MARKET INFORMATION
Hul conducts marketing research process for innovating and producing new products to suit the customer needs The Hul has an RampD (research and development) Department which undertakes this task
They employ more than 6000 RampD professionals in six global research centers 13 global product development centers and regional amp country development amp implementation centers
Our aim making a difference
Our RampD mission is to differentiate deliver sustain and grow This means creating distinctive new products with proven benefits that address real consumer needs By doing this well we will also contribute to Unilevers sustained growth
Setting the RampD agenda
The process starts with defining our RampD agenda taking into account our brands and categories strategies as well as cross-category areas such as key consumer benefits and science and technology platforms These broad research areas are defined by Unilevers Executive Board
Global research
Our scientists scout for new ideas and emerging science integrate relevant new leads into our broad cross-category research areas and ensure that the relevant research findings from our longer-term projects are incorporated into our medium- and shorter-term category innovation projects
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Global product development
Our global product developers design products integrating scientific findings (for example a new functional ingredient) with other criteria including product performance stability packaging and cost
Regionalcountry development amp implementation
Our regional development and country implementation teams roll out innovations and renovations in the regions countries and factories This can include adaptation of a product formulation to use specific local raw materials allow factory-specific production processes to take place or conform to local nutrition or regulatory requirements The regional and country teams also feedback local insights (for example local taste preferences) to the global product development teams
Working with external partners
Across the RampD process we work closely with academic institutions and third parties such as suppliers to ensure optimal access to the best science and technology inside and outside of Unilever One example is our Centre for Molecular Informatics This partnership with Cambridge University is widely acknowledged as a model for how academia and business can work together to bring benefits for science business and consumers alike
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
PRODUCT PLANNING AND DEVELOPMENT
HUL produces consumer products intended for personal consumption by households This is distinguished on the basis of who will use them and how they will be used
Convenience Goods
Convenience products are inexpensive frequent purchases there is little effort needed to purchase them Examples may include fast food and confectionery products Convenience products are split into staples such as milk eggs and emergency products which are purchased when the need arises
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
PRODUCT INNOVATIONS IN HUL
Hul uses their knowledge and imagination to translate science into products that meet a range of consumer needs
For example letrsquos take one of HULrsquos product rexona
Intelligent deodorant
Our Rexona deodorant uses body-responsive micro-capsule technology that kicks in when itrsquos needed most giving people the confidence to face the days more stressful situations
The challenge
Instances of stress ndash whether expected or unforeseen ndash can make people sweat more than usual However at times like these most deodorants canrsquot cope Our challenge was to develop a product that offered extra protection at such moments delivering additional freshness and giving consumers the confidence that comes from knowing they look in control
Understanding sweat
The key to solving the issue lay in understanding sweat Our studies showed that humans produce two quite different types physical sweat that the body makes when itrsquos hot and sweat that breaks out in moments of stress anxiety or high emotion Unlike physical sweating emotional sweating occurs predominantly on the hands and armpits This type can produce up to five times more sweat than the physical kind and can smell more unpleasant Physical sweat takes five to ten minutes to occur emotional sweat can be instantaneous
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Responsive technology
Since deodorants deal primarily with physical sweat we set about developing a technology that could also cope with emotional sweat In partnership with key suppliers our scientists developed a new anti-perspirant ndash Rexona Activreserve ndash whose special micro-capsules of odour protection are activated when the body responds to stressful situations
These capsules sit on the skinrsquos surface When pressure or stress cause a sudden uncontrollable burst of sweat in the underarms the sweat dissolves the capsules giving extra odour protection when itrsquos most needed So whether an individual is sweating a lot or a little the technology will always release the right amount of protection
Putting it to the test
Using assessors who are trained to sniff body odour and rate its intensity and character we demonstrated that Rexona Activreserve continues to reduce odour up to 24 hours after itrsquos applied even with multiple stressful moments during the day
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
PRODUCT MIX STRATEGIES
A product mix is a set of all products offered for sale by the company HUL has a very comprehensive product mix as it offers a variety of products under different heads
Product mix and product line of Hul
Food brands
Home care brands
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Personal care brands
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
WATER
Pureit is the worldrsquos most advanced in-home water purifier Pureit a breakthrough offering of Hindustan Unilever (HUL) provides complete protection from all water-borne diseases unmatched convenience and affordability
PRODUCT MIX AND PRODUCT LINE
WIDTH how many product lines HUL=11
LENGTH total no of items in mix= 25
Average length of line 2511
DEPTH variants offered of each product in a line LUX comes in four scents in two sizes Therefore depth= 8
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Line extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product
Hul launched surf ultra surf excel matic surf excel international surf excel
PRODUC T LIFE CYCLE OF LUX
LUX PLC
INTRODUCTION STAGE MARKETING OBJECTIVES
The Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the product were based on
Product
They offer only on product in the market They did not come up with the differentiated product
Price
In the initial stages of the product they offer the relatively higher price than their competitor (LIFEBUOY) Because they want to recover their cost which incurred initially in making the product Or another reason was that they have segmented the niche market
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Advertising
In the initial stages they allocate more advertising budget to advertise the product So that more and more customers would be attracted towards the product In ads they targeted the early adopters who were readiest to buy the product
GROWTH STAGE
In the growth stage their sales rapidly started rising In the growth stage they have expanded their market to the other cities The marketing managers also make changes in the marketing objectives and their marketing strategies
MATURITY STAGE
Lux is now in the maturity stage they modified the product by adding some changes in the product In this stage few competitors enter into the market like (SAFEGUARD CAPRI etc) So the marketing managers make different strategies to handle the competition The company has expanded their market to almost all the cities
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
BRANDS PACKAGING AND OTHER PRODUCT FEATURES
A brand name consists of words letters and or numbers that can be vocalized A brand mark is that part of that brand that appears in form of a symbol design or distinctive color or lettering
HUL BRANDING STRATEGIES
PLACE PLANNING STRATEGY
70 of Indiarsquos population resides in villages Penetrating the rural markets is therefore one of the key challenges for any marketer While rural markets present a great opportunity to companies they also impose major challenges At HLL they have been at the forefront of experimenting with innovative methods to reach the rural consumer
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
SINGLE DISTRIBUTION CHANNEL
For rural India HLL has established a single distribution channel by consolidating categories In a significant move with long-term benefits HLL has mounted an initiative Project Streamline to further increase its rural reach with the help of rural sub-stockists It has already appointed 6000 such sub-stockists As a result the distribution network directly covers 50000 villages
Soap market
HLL opted for the strategy of developing quite a few strong brands in this line and among them they cover different market segments and price points Dove Lux Liril Rexona Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time Lifebuoy is 100 years old and Liril 15 years old In fact HLL has about 10 brands of toilet soaps each having good volume of sale to its credit The point is that decisions on brand portfolio are a fundamental expression of the companyrsquos objectives and strategy governing a given business
Today brand extension strategies are widely employed because of beliefs that they build and communicate strong brand positioning enhance awareness and increase profitability
Brands are often extended beyond their original categories to include new product categories Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension The transfer of these quality perceptions is the key in umbrella branding An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Hindustan Unilever Ltdrsquos (HUL) beverage brands have been amalgamated under two umbrella brands ndash Brooke Bond and Lipton and in the fabric wash category the company has retained only Rin Surf and Wheel
HLL is now focusing on innovation and differentiate products The company has begun test-marketing Dalda Classic a cooking product with butter aroma in Tamil Nadu It has Dalda vanaspati Dalda refined groundnut oil and Dalda Activ
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
SERVICES MARKETING
Hul being a fast moving consumer goods company is not into services marketing all its products are tangible However hul offers to give a service like experience to its customers through its products Meaning to say through its variety of products HUL wishes to create an experience that will make the consumer forego the original provider of the service
Say for example let us consider this
Create a home spa
If you want to be pampered and give your skin a treat therersquos no need to pack your bags and head for the nearest spa or health resort
There are plenty of things you can do instead to transform your own bathroom into a place to refresh and rejuvenate your skin Heres our guide to the absolute must-haves for every home spa
Accessorise your bathroom
Have a generous supply of plush towels or robes handy The softer and more absorbent they are the better Sponges and brushes are important too Scrubbing your body in warm water is an invigorating way to stimulate circulation remove dead skin cells and leave your skin healthy and soft A loofah body glove body brush and pumice stone ndash for feet ndash are all great to use during a luxurious bath
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
Skin food
Dont just settle for cleansing ndash nourish your skin Choose a cleanser that is appropriate for your skin type and avoid harsh soaps as they can break down your skins protective layers allowing natural moisture to escape Lux has a range of body washes and soaps designed to make you feel special and pampered ndash which will leave your skin looking and feeling great
Natural beauty
The skin around our eyes is one of the clearest signs of exhaustion Eye masks are a gentle way to soothe and refresh aching eyes and a slice of cucumber placed on each eye for 15 minutes is a simple home-made solution And after your bath soothe your skin with a body lotion As well as moisturising body lotions can also improve the texture appearance and health of skin ndash look for one that suits your skin type
Treat your senses
No home spa would be complete without your own personal soundtrack ndash music and sounds that you find relaxing or inspirational This could be anything from classical music to the sound of a bubbling stream or fountain The soft flickering glow of scented candles will also help you relax and give your home an authentic spa atmosphere
