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INNOVATIVE
MARKETING Prepared By
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WHAT IS INNOVATIVE MARKETING
A marketing innovation is the implementation of a newmarketing method involving significant changes inproduct design or packaging, product placement,product promotion or pricing.
Marketing innovations are aimed at better addressingcustomer needs, opening up new markets, or newlypositioning a firms product on the market, with theobjective of increasing the firms sales.
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The Rural Bharat and Urban India
India has 2 economies
1. The rapidly growing Urban India housing the worlds best IT firms and theworlds biggest slums
2. Rural India, which still depends on subsistence agriculture
Due to the vast difference in the economies, lifestyles, tastes and accessibility,different strategies have to be adopted to enter each segment. Strategies would differbased on
Product:Rural Bharat: Basic necessities.Urban India: Discretionary items and basic necessities
Price:Rural Bharat: very price sensitive, extremely inelastic, the lower theprice, the betterUrban India: looking for the price quality balance. Just low price is notsufficient
Promotion:Rural Bharat: One to one education, TV, local events and festivals.
Urban India: 360 promotion
Placement:
Rural Bharat: small ration shops, hawkers, local markets. Making thedistribution channel very difficult and far flung. Local and efficientdistribution is essential to ensure penetrationUrban India: all modern trade channels, making the distribution easierand manageable.
VS
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The 4 As rule for innovating in Rural
IndiaAvailability
Ensure high network of service centers and personnel
LG: 230 service centers, 65 remote area offices, 2600 mobile service personnel
Coca cola: has evolved a hub system in Rural India to ensure full supply
Hindustan Unilever: to serve remote villages they use all forms or means of
transportation from rickshaws and bullock carts to boats
Supply chain management: due to lack of connectivity it isvery essential to have efficient and effective Supply Chain
HUL Shakti: using rural women as distributors of HUL products
Tata: uses NGO network to distribute products
Reliance Retail: uses procurement from local villages to supply to theneighboring cities
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Affordability
Provide cheap prices by introducing smaller unit packs
Godrej: introduced its key proposition in soaps and fairness cream in 50 gm packs for Rs 4-5 forMadhya Pradesh, Bihar and Utter Pradesh
Coca cola: grabbed the rural India market share by introducing returnable 200 ml glass bottlesof Coke for Rs 5, to bridge the gap between soft drinks and locally available options like tea,lemon water and butter milk
Hindustan Lever: launched its best selling soap Lifebouy at Rs. 2 for 50 gm
LG launched its first low priced TV for Rs 3000
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Acceptability:
Offer tailor-made products suited for the needs and lifestyle ofthe market
Coca Cola: understanding the problem of lack of electricityand refrigerators in rural areas, Coca Cola provided low cost
ice boxes and thermocol boxes HDFC: tied with NGOs to offer low price insurance covers
Easy to understand LG: introduced regional language games in its low cost TV
Awareness :
The means of awareness is very different in Rural India incomparison to Urban India
One to one contact program: Use of personal interface is veryimportant to gain trust, demonstrate, induce trial andeducate
Promotion: Entertainment
Cultural events example religious plays andperformances Dances, folk performances
Local annual fairs Annual Hatts (local marketplace) Weekly Marts Mobile vans
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The Marketing Mix For Innovative Marketing
Your product should be an international brand with an Indian heart.
Price (value for money, balance between low cost and good quality)
Case study McDonald's India: value pricing and bundling strategy,Happy Meal, Combo Meal, Family Meal which helped drive salesvolumes.
Pack (local terms, appealing graphics)
Case study Coca Cola India: Associated the term Thanda (cold)with coke, the term is a generic one which is used to refer to
anything cold in North India. To make Coke part of the commonculture they ran campaigns to get people to associate Thandawith Coke as well.
Promotion(Movies, bollywood and tollywood actors, local icons,sports) difference in promotion tactics based on region
Case study Gillette India: Use of sports as key promotion vehicle,use of Rediff(Indias leading website for news and mail) andZapak (Indias leading geaming website) to market its product
Placement ( supermarkets, local groceries, all modern trade channels)
Positioning
ITC Fiama de Wills Shampoo: entering an over crowded categorydominated by MNC brands, ITC noticed that products are dividedbased on Cosmetic and Natural offering. They decided to combinethese 2 benefits and offer the best of both worlds.
Once all these criteria are met then the middle class Indians willbecome purchasers with a high degree of loyalty to a specificbrand
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PRODUCT INNOVATION
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NANO CAR
Tata Motors launched world'scheapest car, Tata Nano in India inMarch 2009. It is fast, swift and mostimportantly easy on the pocket.
In November Tata Motors launcheda brand new variant of Tata Nano,which will be available to theconsumers in new colours and wouldcome with a more powerful petrolmotor that will deliver a superbmileage of 25.4 km per litre.
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ChotuKool by Godrej: Cheapest refrigerator
Understanding the need for acheap, lightweight fridge whichconsumes less electricityGodrej came up with thecheapest refrigerator worth Rs3250/-
Innovative distributionstrategy: they employed villagegirls to distribute the product,increasing trial and reducingcosts by 40%
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Garnier 2 in 1 Shampoo:Convincing the Consumer to Think Differently
Background Indian consumers traditionally oil their hair the night before washing, to lubricate and give itshine
The following morning, shampoo is used and the oil removed So, shampoo and oil do not naturally go together in one product
Challenge Can Garnier convince the consumer that shampoo and oil can go together as a 2 in 1
proposition?
Does the product meet the needs of the consumer? Yes The oiling and shampooing tradition is timeconsuming: time which consumers today do not
have If this product suits both needs and shows equivalent results as actual oiling it would be
accepted
Does the product already exist in the market? No: its new and unique
Result Due to its uniqueness, the product has induced trial The acid test for consumer retention is the actual product quality and effect
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Volvo mini Car
The Volvo Car Corporation has built
a mini-Volvo that takes care of very
special transport requirements
during the European Athletics
Championship in Gothenburg.
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INNOVATIVE
PRICE
STRATEGY
Fl d i i i I di R 1
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Fly to any destination in India at Rs. 1
with Cleartrip
Book early with Cleartrip.com and fly to any
destination in India with Airfares of Rs. 1 and save
your hard earned money.
* All fares above are applicable on specific flights,
are subject to availability of seats and are valid
for travel on specific dates, for each city. Taxesextra applicable on the above fares are subject to
change as per government regulations.
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WORLD TENNIS MAGAZINE
World Tennis magazine sold a lot of ads in the
issues before and after Wimbledon. They
offered a Wimbledon Package that included
ads, list rentals, a trip to Wimbledon withplane, hotel, match tickets, and a meet-the-
players party , hence, he changed the offer
structure. He innovated his offer, thusremoving the competition and making it
easier to pull in much larger profits.
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PACKAGING
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. Dumbbell
Packaging
harnessing the
power ofcleaning to make
you stronger.
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Green berry tea, birdshaped tea bagsDesigned by Natalia
Ponomareva, fromRussia. This design iscurrently just aconcept, but
apparently the wingsunfurl in the hotwater.
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Yogurt with a built-in
spoon from Cho Hye-
seung, the yogurt lid
turns into a spoon.
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PLACE
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Facebook Marketing An Innovative
Market Place For Online Entrepreneurs
Facebook is indeed not only for the lonely hearted whowants to make millions of friends online, but it is also forthe entrepreneurs with the launch ofFacebook marketing.
It is a place where sellers can showcase and promote theirproducts and services online that surelyconnects a seller instantly to millions of potential clients.Marketing on Facebook is a good opportunity forentrepreneurs who do not have the budget to rent
locations to build shops where they can market theirproducts. By just creating a Facebook account, one canalready establish an identity that will connect him/her toother users and online sellers.
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PROMOTION
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Promotional Products
Promotional products or items are pieces of goods and commodities given
away for free by marketing and communication programs. Typically, these
are stamped or bedecked with the name, appellation, emblem or message
of the particular company or group in question.
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Aircel: Telecom, started its journey in
Mumbai and is now in all othermetros.
On July 13 and 14, when heavy
rains lashed the city. Peoplestranded at the subway used theraft to move around and men in
Aircel branded T-shirts wereavailable to help commuters.
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These 2 glasses were stuck on to the bonnet
and back of my car by someone at a crossing,and I spent a good 20 minutes trying to shake
them off by swerving the car. On reaching
office I took them off and found the magnet
which said "Magnet sticks to Iron a Class V
question SRK Saying Paanchvi Paas
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F K El f I i
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Four Key Elements of Innovative
Promotion
1. Highly innovative promotion campaigns employ the age-old craft of story-telling,
sometimes allowing the user to fill in the missing pieces of the story.
2. Highly innovative campaigns draw the user in often engaging the user in the
story or campaign.
3. Innovative campaigns draw their creativity from the intersection of 2 or more
marketing devices.
4. Highly innovative marketing utilizes an element of surprise and delight.
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Thank You