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This presentation is the journey of what how and through whom I learned things to grow , rise and advance confidently in my future
Try to deliver the presentation through a story .people react more effectively to stories
Character based narrations do work a lot
Have a solid structure
Have a clear theme
Show a clear conflict
Demonstrate a clear change between before and after
Contribution and knowledge provided by these people was extremely valuable
Nancy Duarte
Garr Reynolds
Jesse Desjardins
Introduction of the company and workforce
CHATEAU DE VALLOIS is a wine producing company in Bordeaux region of France. Its wine are classified as “first growth” and commands top prices and was considered a luxurious wine estate
• Family led business
• Produced finest class of Grand Cru Classe.
• Sold about 1,50,000 bottles of Grand Vin du Chateau de Vallois and around 2,00,000 Puine wine.
• It did not sell directly to consumer market.
• Had a network of negociants .
Brand extension was the topic of debate
New idea proposed
• Younger wine enthusiasts were priced out of high end French wines .
• Non traditional wine makers with low quality and low price will capture the young consumer market
• De Vallois should become affordable luxury .
• Vallois to sell directly to consumers .
Counter points for the new idea
• Not enough grapes for a new De Vallois brand wine.
• Would have to buy vineyards to produce more
• It may damage the image and exclusivity of the whole brand
• Negociants will be angry .
• No experience of distribution channel.
• Heavy investment .
• Marketing insurance and transport will be new problems to address .
BRAND EQUITY
BRAND EROSION
NICHE MARKETING
MARKETING RESEARCH AND DISTRIBUTION CHANNEL
BRAND EXTENSION VS PRODUCT LINE EXTENSION
MARKETING RESEARCH AND DISTRIBUTION CHANNELS
INTERNAL MARKETING
CUSTOMER LOYALTY
BRAND EQUITY
BRAND EROSION
MARKETING RESEARCH AND DISTRIBUTION CHANNELS
INTERNAL MARKETING
CUSTOMER LOYALTY
It is the commercial value that derives from consumer perception of brand name of a particular product or services . It retain current customers and attract new ones . More brand equity ensures growth versus competition
High brand equity sustains tough competition
BRAND EROSION
Brand erosion occurs when company loses its unique identity that sets it apart from other companies in the market place Sometimes wrong decisions , unplanned extensions lead to brand erosion
IN THE CASE OF CHATEAU DE VALLOIS WINE BRAND IN THE ARTICLE
There are two cases possible :- The company can leverage its high
brand equity and authentic image to successfully launch the new product line or brand for young customers
If the new product fails to establish authenticity among consumers then the parent brand erosion and cannibalization is likely to occur
LINE EXTENSION
When a brand is used to brand a new product that targets a new market segment within a product category currently served as the parent brand . Line extension can be on the basis of size , colour , flavour , shape
Colgate is perfect examples with its product line of colgate whitening , colgate herbal , colgate cavity protection
BRAND EXTENSION
Procter and Gamble brands . An outstanding example of brand extension
Brand extension uses an existing brand name to promote a product in a different category . Here the product category is changed
IN CONTEXT OF THE ARTICLE CHATEAU DE VALLOIS WINE BRAND HAD TWO OPTIONS IF THEY AGREE TO LAUNCH A NEW WINE VARIETY
They can go for either brand extension or line extension to launch a new wine for young consumers at low prices Both have different implications and thus proper marketing research to be conduct to explore which one is the suitable option
A niche is a focused, targetable part of the market, a specialist providing a product or service that focuses on specific client group’s needs, which cannot or are not addressed in such detail by mainstream providers.
NICHE MARKETIG
Series of TAJ Hotels and resorts targets on niche market of high profile people providing exclusivity
CHATEAU DE VALLOIS WINE BRAND IN THE ARTICLE IS ALSO A NICHE MARKETING COMPANY
SHOULD IT INCREASE AND ENHANCE ITS EXCLUSIVITY OR ENTER IN OTHER MARKET SEGMENTS TOO?
INTERNAL MARETING
Internal marketing is a means of involving staff at all levels in effective marketing programs by enabling them to understand their role within the marketing process
The company in the article – CHATEAU DE VALLOIS also exhibits the lack of internal marketing . It possess old family business ways and norms and working environment . There were was no proper board of directors , no separate department and enough staff and manager. Internal marketing would have helped a lot the company in taking decisions and making investments
Two options with the wine brand CHATEAU DE VALLOIS
VERTICAL BRAND EXTENSION
Here the brand extends the same product with different prices and quality generally seen in automobile Though it is the quickest way to leverage brand equity it involves risk of cannibalization
INCREASING THE EXCLUSIVITY
If the company extends its brand in more exclusive wines for more niche market it will associate the brand with desirable luxury And become the pioneer
GIORGIO ARMANI is a Italian fashion house launched as a company in 1975 . It designs , manufactures and distributes HAUTE COUTURE, ready to wear leather goods , shoes , watches ,jewellery ,accessories ,cosmetics and hotels
Giorgio Armani Prive was a luxurious brand and was red carpet or black label market . It gained its image as finest class clothes designed by GIORGIO ARMANI
ARMANI HAD A BIG IDEA to extend the brand and cover all potential customers not by a single product but different lines targeting the highly segmented customers
ARMANI divides the market based on demographic factors (age, style, budget, etc.) and targets each of its lines to a specific demographic
IT IS ABOUT MAKING YOU A CUSTOMER FOR LIFE
ARMANI XCHANGE is a mass-market line aimed at younger consumers who may be familiar with the Armani brand but unable to pay thousands for a single garment;
GIORGIO ARMANI is targeted toward an older, more affluent client base that is interested in more classic European tailoring;
Armani Prive is aimed at the small subset of very wealthy clients who prefer couture to RTW
Market segmentation , extensive marketing research , appropriate
targeting , brand equity and finest
quality were the key concept in successful brand extension from luxury to affordable
luxury
Case study
MARICO LIMITED
I have presented this case to outline most important points I learnt in this internship with practical application
INDUSTRY CONSUMER GOODS
FOUNDED 1987
HEADQUARTER MUMBAI
PRODUCTS EDIBLE OIL , SALT , HAIR CARE PRODUCTS , SKIN CARE PRODUCTS , FOOD
REVENUE $ 173 MILLION (2014)
CEO SAUGATA GUPTA
FOUNDER HARISH MARIAWALA
MARICO’S JOURNEY 1971
Harish Mariawala joins family business BOMBAY OIL INDUSTRIES
1971 Harish envisions a branded FMCG market for coconut and refined edible oil in small consumers packs and distribution channel for Parachute
1980 Traditional Parachute pack replaced by plastic packs
1990 Marico limited is born
MARICO’S JOURNEY
1991 3 Ps product , priority and people were born
1991 Launch of HAIR CARE
1992-1994 Set up of its first office in DUBAI
1990 Marico limited is born
1990 Marico limited is born
1994 REVIVE cold water starch
MARICO’S JOURNEY
1996 Marico lists on Indian stock exchange
1999 Marico aquire MEDIKER first overseas manufacturing facility in Bangladesh
2002 Kaya skin clinic – INDIA’s first unisex top of line dermatology led clinic
2003
MAKING A DIFFERENCE – sets up Copra collection centres to procure directly from farmers increasing their margin and improving their lives
MARICO’S JOURNEY
2006-2007 Enters AFRICA and aquire BLACK CHIC AND HERCULES
2010 CODE 10 male grooming in Malaysia , Saffola
2011 & 2012 PARACHUTE ADVANCE , SETWET , LIVON
MARICO’S JOURNEY
2006 NIHAR enters MARICO’S fold
2006 NIHAR enters MARICO’S fold
RESEARCH AND DEVELOPMENT
• Evaluation of natural herbs for proprietary ,patentable hair and skin products with sponsorship from department of science and technology
• Working with premier institutes for better evaluation of products FMGC and CSIR
• Numerous innovation in packaging options
• LOSORB TECH IN EDIBLE OIL AND FREE OF TRANS FAT , USE OF RICE BRAN OIL
• Parachute therapie hair fall solution and Parashute
advance after shower cream are some innovation example
MARICO’S JOURNEY
MARKET SEGMENTATION AND TARGETING
GEOGRAPHIC SEGMENTATION INDIA- urban population and townships , rural India in some products DEMOGRAPHICS – educated women , men over age 45, girls and boys in 20s , health conscious people , western culture effected lifestyle, middle and lower income specially BEHAVORIAL SEGMENTATION – based on competition each product is available in two or varieties , size and shape with distinctive features to retain users and attract non users
MARICO’S JOURNEY
Extensive market research MARICO’S JOURNEY
Marico is a pioneering in market research and identifies each and every need and want of consumers in ceratin product line range .
Example- saffola gold , saffola tasty , new saffola
, suffola active are different varieties of saffola edible oil
launched after extensive research of consumer market
MARICO’S JOURNEY
Advertising campaigns and building credibility
It exercises excellent advertising campaigns so that people can associate themselves with the product Heart day celebrated by SAFFOLA this way linked consumers to a delicate feeling of protecting their family from heart diseases and using saffola oil
“GORGEOUS HAMESHA “ ad campaigns associating young girls to their beauty and looks
“Khoobsoorat hai badhte rehna” and many more….
Importance of marketing
Marketing helps firms to prosper financially and survive in the face of an unforgiving economic environment . Financial success often depends on marketing ability
holistic marketing It is a concept based on development design and implementation of marketing programs , process and activities that recognize their breadth and interdependencies
Building customer value , satisfaction and loyalty Businesses succeed by getting , keeping, and growing customers. The only value your company will ever create is the value that comes from customers
core competency A core competency has three characteristics: (1) It is a source of competitive advantage and makes a significant contribution to perceived customer benefits. (2) It has applications in a wide variety of markets. (3) It is difficult for competitors to imitate.
What is brand and role of brand A brand is thus a product or service whose dimensions differentiate it in some way from other products or services designed to satisfy the same need . These differences may be functional , rational , or tangible—related to product performance of the brand. They may also be more symbolic, emotional, or intangible—related to what the brand represents or means in a more abstract sense.
BRAND EQUITY
BRAND EXTENSION , BRAND PORTFOLIO AND BRAND REINFORCEMENT The brand portfolio is the set of all brands and brand lines a particular firm offers for sale in a particular category or market segment. firms have decided to leverage their most valuable asset by introducing a host of new products under their strongest brand names.
BRAND VS LINE EXTENSION
Wine brand CHATEAU DE
VALLOIs in the article was
struggling with these terms
BAVARIAN MOTOR WORKS is niche marketer and a luxurious brand but it has also extended its brand perfectly maintaining its exclusivity
Instead of losing its luxurious image CHATEAU DE VALLOIS in the article could have opted for extension in exclusivity
• Product-feature specialist. The firm specializes in producing a certain type of product or product feature.
• Quality-price specialist. The firm operates at the low- or high quality ends of the market .
• Service specialist. The firm offers one or more services not available from other firms .
CHATEAU DE VALLOIS IN THE ARTICLE FALLS IN THIS NICHE MARKETING CATEGORY
Both quality-price and serivce specialist nicher
NICHE MARKETING SPECIALIST
End-user specialist The firm specializes in one type of end-use customer . For example , a value-added reseller (VAR)
• Customer-size specialist. The firm
concentrates on either small, medium-sized , or large customers.
• Specific-customer specialist. The firm
limits its selling to one or a few customers . Many firms sell their entire output to a single company , such as Walmart or General Motors.
MANAGING LUXURY MARKET
Luxury products are perhaps one of the purest examples of branding, because the brand and its image are often key competitive advantages that create enormous value and wealth for organizations .
Marketers for luxury brands such as Prada, Gucci, Cartier, and Louis Vuitton manage lucrative franchises that have endured for decades in what some believe is now a $270 billion industry.
The common denominators of luxury brands are quality and uniqueness