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Product and Brand Management
Cycle Agarbattis
Submitted by:Sunil Rao (36)
Pallavi Srivastava (55)Mansi Patil (130)Vinay Singh (150)
Akansha Raje (158)
History and Ownership
• Began as "Mysore Products and General Trading Company" in 1948.
• Founder: Sri. N.Ranga Rao• Owned by the Rs. 130 crore, Bangalore based N
Rangarao and sons.• NR Group has the strongest R&D setup in the entire
agarbatti industry.(Over 500 agarbatti fragrances) • Market leader in India and also exports to 60
different countries.
Brand Elements
• Name: Cycle Agarbatti• Logo: A Cycle which symbolizes Quality.• Tagline: “Bhagwaan Hai"• Graphics: Depiction of Gods in its packaging and print
ads.• Sounds: The brand also has few signature tunes to
make sure that the brand has its presence in the minds of consumers.
• Scents: The agarbattis produce an exhilarating fragrance that tantalizes the senses and moves the soul.
Product related Elements• Synonymous with religious prayers and ritual ceremonies. • Used during meditation, spiritual sessions and yoga practices. • Used in everyday life as air fresheners and in aromatherapy as mood
enhancer or stress relieving agent. • Different natural herbs, flowers, aromatic oils are used for making
these sticks. • Many herbal extracts and aromatic oils, powders are used to form the
paste. • Saffron incense sticks is mainly used in aromatherapy.• Lavender incense sticks are said to relieve stress and headaches when
burnt in the work place.• Jasmine incense sticks proves valuable remedy for depression, stress
and fatigue.
Brand portfolio
Profile of Target Customer
• Lower middle class, Middle class, Upper middle class, Rich.
• They have all range of customers. • From auto rickshaw wala to shopowners every
one uses it. • It is used during inauguration of event or
festival etc.
Communications• Print Media: “Bhagwaan hai” which has come in regional
languages like Malayalam, Gujrati, Kannad(Devaru iddarre), Marathi to cater to the varied target customers
• Radio: There are radio ads of the brand in different regional languages
• TV Commercials: Phir bhi dil hai Hindustani and Bhagwaan hai are few popular ads that are hit on TV
• Signature Tunes: The brand also has few signature tunes to make sure that the brand has its presence in the minds of consumers
• During the ICC Cricket World Cup they have launched the ‘Pray for India’ campaign which was part of all their communications during that period.
Stick Maker Agarbatti Roller
R/M Suppliers
Forest Dep/Bamboo Supply
Sorting of Agarbatti
Retailers
Packaging Section
Stick Sorter
Customers
Perfume Industry
Agarbatti PerfumerPackaging
Transporter
DISTRIBUTION
Pricing
BRAND PRICE
Cycle Agarbatti
120 sticks. MRP : Rs 50
Cycle Lia Agarbatti
70 sticksMRP : Rs 30
Pricing
BRAND PRICE
Cycle Hexa Agarbatti
MRP : Rs 10
Cycle 3 in 1 Agarbatti
30 gmsMRP : Rs 10
Positioning
• ‘Cycle’ is positioned as a premium brand and differentiated from others in terms of packaging, advertisement campaigns and quality.
• Cycle agarbattis thrived in the market by continuous innovation in their packaging and fragrance.
• Cycle established their presence in the less attractive market as a brand by some effective campaigns emphasizing on quality and fragrance.
POP’s and POD’sPoint of Similarity:• Pricing- Ranges from Rs.10 – Rs 60 packets for agarbattis• 3-in-1 and 5-in-1 packets• Promotes the religious cause• Availability in kiranas, pan shops, supermarkets etc
Point of Difference:• Good Quality• Better Packaging• Better offers for customers during festivals• Give importance to promotions• Variety in fragrance• Pooja Kits are also their USP
Competitor Analysis
• ITC has launched Mangaldeep Agarbattis across a wide range of fragrances like Rose,Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.
• Appropriately priced to appeal to a cross-section of consumers at various price segments. These agarbattis are available in innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of packaging which retains the fragrance for a longer period and helps in "Completing the Purity of Prayer“.
• First in the country to receive the ISO9000-2001certification for agarbatti making
Competitor Analysis Continued…
• Exported to United States of America, United Arab Emirates, Bahrain, Nepal, Singapore, Malaysia, Oman and South Africa.
• Supporting an 'Agarbatti Community Participation Programme' run by the Vyakti Vikas Kendra, a non-profit organisation founded by the renowned spiritual guru Sri Sri Ravishankar and located near Bengaluru.
• Over 100 village women are gaining from the training that this organisation imparts in rolling agarbattis.
• Extending similar support to other NGOs in states like Bihar, Tripura and Tamil Nadu.
Sources of Brand Equity & Brand Mantra
Brand Awareness : • High due to advertisements like ‘Bhagwaan Hai’ ; signature tunes and social
activities performed by the brand• Launched campaigns like ‘Pray for India’ • Campaign during Durga Puja in West Bengal• Free match box with the pack• Always ‘top-of-the-mind’ recall
Brand Image :• Pleasing fragrance• Readily available• Long lasting
Brand Mantra : Innovation, variety and surprise for the customer
Performance:
• Creativity : Good Fragrance • 3-in-1 pack• Quality • ‘Cycle’ – across all languages• Distribution: Easy availability
Imagery:
• Innovative• Product Differentiation :
Variety• Socially responsible• Excellent packaging
Judgements:
• Value for money• Durability
Feelings:
• Warmth• Self-respect
Salience : Brand Awareness
• High Breadth : Pooja, Religious festivals, Gift to loved ones, Room freshner, Ayurveda, Spirituality• High Depth : Top of the mind recall due to easy availability, quality
Resonance
• Loyal customers• Repeat purchase
Customer Based Brand Equity Pyramid
Major Issues
• Agarbatti is a commodity• Input costs are rising
Brand Strategies
SWOT ANALYSIS
STRENGTHS •Art of perfuming is well accustomed.•Large labour base•Exposure to Export markets•No power requirement•Aids to poverty elevating program •Has a huge potential to generate employment•Recognized under the handicraft sector•Supports many allied activity of handicraft (Bamboo splitting, Paper tube making etc.)•Support of Government departments , NGOs
WEAKNESSES •Decrease in raw material availability•Lack of mutual trust•Customer awareness is very low amongst low-end producers.•Finance is not liberal since industry involves large working capital.•Lack of innovations and experimenting skills to explore the new users & uses•No progress in R&D•Laws, acts etc.•Poor living condition at bottom of the network
OPPORTUNITIES•Large export market potential.•Scope for innovations and R&D•Domestic market expanding•Machine milled, hand rolled batties are having a competitive edge over machine made agarbattis•Free trade regime can provide better raw materials for better price
THREATS•Global competition.•Unethical practices at local level.•Forest based raw material supply becoming scarce•Mechanization
Mc Kinsey’s 7S ModelMckinsey’s 7S Model The 7s Framework of McKinsey is a management model that describes 7 factors to organize a company in a holistic and effective way
Application of 7s Model:
1. Structure:
•The organization chart and accompanying baggage that show who reports to whom and how tasks are both divided and integrated.
•Since N.Ranga Rao & Sons is a private ltd company. The structure of the organization is democratic. Major decision however is taken is at top-level management of the company.
2. System:
•Quality always has been an integral part of the organization in all processes during product realization.
•Quality checks at vendor premises daily, is our norm for out-sourced processes.
•AWARENESS on the importance of quality and introduction of FORMAL methods for quality control and improvement has been an evolutionary development over 6 decades
Mc Kinsey’s 7S Model
3. Style:
Style is one which top managers can use to bring about organization change.
The reasons to support this are as follows:
1. Whenever important decision are to be made, the whole staff is allowed to participative in the decision making where by suggestions are sought and if found appropriate are accepted and implemented.
2. In N.Ranga Rao & Sons instead of „Boss-Subordinate‟ relationship among the employees of the organization, superior acts as a guide and facilitator for his subordinates.
3. The top management always encourages changes in the organization provided they happen to be always ready to cope with different situation.
Mc Kinsey’s 7S Model
4. Staff:
•Employees are the functional unit of any organization•The company contributes to the prosperity of the society as whole by providing equal opportunities to all•The company provides training to get gainful, high performance employees. 1500 plus employees are working under N.R.Group in all over India.
5. Skill:
•The qualified personnel with required skills and competency are recruited and selected for the required designation.
For example: for recruiting and selecting the manpower required by the Marketing department the criteria would be MBA (Marketing) and who have the capabilities and competencies to handle the functioning of work smoothly.
Mc Kinsey’s 7S Model
6. Strategy: The strategies being adopted by the company:
"FRAGRANCE WORLD”, THE EXCLUSIVE RETAIL SHOWROOM: Fragrance World‟, the exclusive retail showroom of the Mysore based NR Group located on Dhanwantri road in Mysore city.
•Advertisement in a traditional and devotional way like Bhagawan hai, Devaru eddare
• Sponsoring Third umpire ship in International cricket matches
• Building bus stands in the Mysore city with colourful background of Cycle pure agarbattis posters
Mc Kinsey’s 7S Model
7. Shared values: The common feeling among the people in the N.Ranga Rao & Sons is that they are meeting the demands of the customers and fulfilling the expectations in the form of productions and its variability. The employee also have belief that they are giving at the best possible price to milk they procure from farmers. Value of NR Group:
• Honesty
• Discipline
• Transparency
• Cleanliness
• Total quality
• Self-reliance
• Co-operative free politics
• Respecting others opinions, emotions, thoughts, and feelings.
Mc Kinsey’s 7S Model
Suggested 4Ps of Marketing Strategy
ProductThe company should come out with the following products:
Agarbatti’s namely:a)Super b)Medium c)Regular
In four perfumes, namely:a)Lily b)Rosec)Jasmined)Mograe)Without perfume
Suggested 4Ps of Marketing Strategy
PriceThe company should come out with innovative pricing strategy.
In five types of prices:a) Mini Pack (Kabhi Kabhi) – Rs.2b) Regular Pack (Rozana) – Rs.10c) Thick (Bada) – Rs. 25d) (Extra Bada) – Rs.40e) Jumbo – Rs.90
Place
Urban Areas – Super Market, Retail Outlets, Kirana Shops, Pan Shops Rural Areas – Haats, Kiranawala, Pan Shops, Door to Door selling
Promotion
Following promotional strategies should be followed:a)Banners b) Distribution of free mini pack with some of the regular household commodity(Bundling)c)Pamphletsd)Painting on the walls or shutter of the kirana & general stores
Social marketing – Use 50paisa to 1 Rupee from sale of each packet for social causes
Suggested 4Ps of Marketing Strategy
Recommendations
1) Advertising can be done in all mediums like TV, Radio, and Magazines etc. On the whole effective advertising in the media is necessary. The advertisement should develop a purchase intension in the minds of the viewers.
2) To make the buyers more loyal towards the brand, give more discounts and offers have to be provided
Example: If u can give a coupon inside the pack of Agarbatti, if ten coupons are collected one pack can be given free or any small gifts can be given. Such offers may develop a brand loyalty towards Cycle Pure.
3) Product proliferation: introduce the products with lots of variety, this will give the buyer more choice Example: Lia, Bansuri, Rhythm etc.
4) Offer sample packs to all outlets so that the product gains awareness.
Recommendations
5) Sample packs can also be given with some local magazines which are being sold.
6) The sticks must be more thick and The chemicals used in incense stick will not attach to the consumer hands
7) Many competitors are providing 1Rs and 2Rs packets with 4 or 6 sticks for a day use therefore company can grab that opportunity.
8) Company should give more important on quality because some of the incense sticks will not burn fully and in the middle itself it will off so company has improve on quality.
9) Increase the quantity of agarbatti packets of 10Rs and 12Rs.